Vietnam's Housing Market Makes No Sense

Comments · 309

• DA

  @david94134 · 1 month ago

  The irony is that most Vietnamese considered home an investment. A home is paid in full at the time of purchase. The banking system is very underdeveloped. People do not trust banks due to the country’s traumatic history. The only way of saving is hard assets like gold or a house.

  144

• SF

  @sflxn · 1 month ago

  I've talked to a lot of real estate agents in Vietnam.  None have explained the reason well.  This was very good.  It makes a lot more sense now.

  43

• MI

  @michaeldo6327 · 1 month ago

  Vietnamese buys homes for capital appreciation not rents. Rents are byproduct so they can help cashflow while waiting but not the primary source of profit. The same as gold purchase, a gold bar produces nothing for thousand of years while it is in your safe but it is appreciated in price.

  56

• KA

  @kaoulkae · 1 month ago (edited)

  I don't get it. This is "normal" in Europe. The average rental yield for a property in many cities is 4% annually. $176,000 multiplied by 0.04 gives you $7,040 a year, and divided by 12, that equals $586.67 a month. Pretty much this rent.

  180

• TR

  @tranvu5303 · 1 month ago

  The rent you showed is only affordable for expats. For the local population, that is a monthly salary of 1 person.

  19

• DA

  @dadsrag · 1 month ago (edited)

  My one story house in Khue My is built on 3 land lots, with all that extra ground space given over to fruit trees and garden. I pay 23 million dong per month, around USD940 on land that's worth around USD 1million. That's a cap rate of around one percent. One. Not 1% a month, I'm saying 1% per year. You can buy a house today in Franklin County, Ilinois with a cap rate of ten percent. Why? Dunno. But I'm happy to rent in this market - a good thing as foreigners can't buy Viet land anyway.

  18

• RW

  @RW185 · 1 month ago

  3.5% yield is not bad at all in Asia, almost all Asian real estate (ex-Japan) don’t yield higher than 3.5%

  6

• CO

  @coscorrodrift · 2 weeks ago

  Great video. I think Peru is the same, with the houses with  the iron poles sticking up

• NG

  @NguyenHieu-tc4pd · 4 weeks ago

  I don’t know if it’s just me but my country housing prices are sky high to the point that I literally unfazed when hearing about the prices in more developed countries. To put into perspectives, a penthouse in one of Ho Chi Minh City most luxurious apartment complex is listed at around 480Billion VND ~$20M, where a townhouse located in Knightsbridge London (one of the world’s most expensive and prestigious area) is listed at around the same price. Wild

  1

• DA

  @dancooper5741 · 1 month ago

  It’s a Ponzi scheme.  These places are traded as commodities, not homes to live in.  It simply relies on a bigger fool for the resale.

  19

• CO

  @conbocuoi22 · 1 month ago (edited)

  the example at the beginning 😂<br>i mean… as a vietnamese - the problem is real, house in vietnam is overpriced (it’s a bubble for sure)<br><br>but the example doesn’t actually do its job ( as it should perfectly do) being the reference <br>1. those online websites always have the higher price (both rent and buy) than the actual price <br>2. Da Nang (and Nha Trang),.. is somehow a “distorted” market for rising demand and it’s not just house, it’s food and everything( touristy cities always have that “touristy” price - i’ve seen apartment in Nha Trang with ridiculous price just because it’s for foreigners, with that price you could have a much more better apartment in HCM, vietnam has overpriced house but those areas are even worse 😂)

  3

• KE

  @kenthd415 · 1 month ago

  excellent video, the explanations, graphics, and edits are easy on the eyes