Abstract
Since the introduction of the Doi Moi economic reform in 1986, the real estate market in Vietnam has witnessed a sharp increase in foreign investment inflows and a remarkable growth in the housing market, particularly for high-rise apartments in large cities. This study investigates the determinants of apartment prices in Ho Chi Minh City (HCMC) and Hanoi, the two most representative cities in Vietnam. The spatial distribution of apartments and their price determinants were addressed by the spatial analysis of Geographic Information System (GIS) and the hedonic model. The price determinants of both cities were closely associated with downtown-related factors; moreover, the externalities of urbanization affected each city. While HCMC was more related to the locational attributes of urban amenities and community density as well as programs because of unmanaged urbanization, Hanoi was more related to housing attributes, since the majority of apartment projects were developed under urban infrastructure development supported by the central government. Apartment cluster maps of each city clearly show the contrast of housing distribution. Our findings clarify the impact of government policies on housing price determinants and can be a reference for private- and public-sector stakeholders seeking to undertake economically and socially sustainable housing development projects in Vietnam.
Highlights
IntroductionAfter the country had opened up and achieved new economic growth, the perception of houses shifted from housing as a shelter to a means of generating income and, since the 2000s, an object of speculation and a status symbol [5]
Geographic Information System (GIS) Analysis of Apartments Distribution in Ho Chi Minh City (HCMC) and Hanoi In HCMC, the central points are located along the city boundaries in the south-southeast direction when the weight of the complex size is considered (Figure 2)
The results identify the significant determinants of apartment prices in HCMC and Hanoi
Summary
After the country had opened up and achieved new economic growth, the perception of houses shifted from housing as a shelter to a means of generating income and, since the 2000s, an object of speculation and a status symbol [5]. Responding to these shifts in perception, the Vietnamese government policies began discarding infrastructure improvement and land provision in the old residential areas to focus on large-scale development projects and housing complexes and related infrastructures. The Vietnamese government does not aim to stimulate speculation and tries to respond to the actual needs of the housing market through careful planning
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