Price Determinants and GIS Analysis of the Housing Market in Vietnam: The Cases of Ho Chi Minh City and Hanoi

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.

Exploratory Spatial Analysis of Housing Prices Obtained From Web Scraping Technique

“…Information on property prices is one of the key factors that determine decisions in various types of activities, in particular those based on spatial data. Maps showing land prices are created using various methods and tools, most of which depend on correlations between land prices associated with other variables such as centralities (Eshliki, Angherabi, 2011;Cellmer et al 2014;Chung et al 2018;Burian et al 2018).…”

Impact of Induced Seismicity on the Housing Market: Evidence from Pohang

“…A typical hedonic house pricing model includes not only housing structural attributes but also locational attributes [15][16][17]. Housing structure indicates the physical characteristics and conditions of housing and land, such as residential building size and quality, room arrangement and quantity, house utilities, and parking [18][19][20][21].…”

Sale and leaseback to market cap rate ratio in emerging markets – an empirical study in Vietnam

“…For example, they could not sub-lease property or possess operating assets. Chung et al (2018) also contend that the policy risks in Vietnam's housing markets can be exemplified by land use planning, infrastructure development and public amenities. Since the Amended Housing Law and Real Estate Business Law adopted in 2015, they have relaxed some restrictions in the housing markets for foreign investors (Frasers, 2015; Savills, 2015), “This effectively gives foreigners the same rights as Vietnamese as they can now sub-lease, mortgage, trade and inherit”.…”