The supply of apartments priced below 75 million VND per square meter is becoming increasingly scarce.

Ho Chi Minh City - The primary apartment market in the city is currently dominated by high-end offerings, with the mid-range segment (ranging from 45 to under 75 million VND per square meter) accounting for less than 15% of the total supply, according to DKRA.

In recent years, the mid-range housing segment in Ho Chi Minh City has become increasingly scarce, making it very difficult for those looking to buy a home to find 'affordable' options.

According to Phuc Thanh An (PTA), in the basket of apartments for sale in the first quarter and those set to be launched in the second quarter, the number of units priced around 40-60 million VND per square meter accounts for less than 15% of the total supply.

Currently, in Thu Duc City, there is only one upcoming primary sales project in the mid-range segment, CitiGrand, developed by Kien A. This project is located in the "price dip" area of old District 2, in Cat Lai Ward, and thus maintains prices 10-30% lower than the regional average. According to the distribution unit, it is expected that in early May, the investor will release 200 final units at an average price of 2.9 billion VND per unit, equivalent to 55 million VND per square meter.

In the southern region of Ho Chi Minh City, there are two projects priced below 60 million VND per square meter currently trading: Lavida Plus (Binh Chanh district) at 57-60 million VND per square meter and Conic Boulevard at 40-42 million VND per square meter. However, all apartments in Conic Boulevard have large areas of 84-114 square meters, resulting in prices ranging from 3.5 to 4.5 billion VND per unit.

Most of the supply expected to be launched this quarter is priced between 70-120 million VND per square meter. Notable projects include The 9 Stellars selling the Alta Height high-rise sector (District 2) with 200 units priced from 85 million VND per square meter; Privie (Gem Riverside, District 2) with expected prices near 100 million VND; King Grown Infinity (Thu Duc district) priced from 110 million VND; Celadon City offering a basket of over 200 units starting at 69 million VND per square meter, excluding taxes and fees...

A market research report from DKRA Group indicates that in the first quarter, Ho Chi Minh City saw approximately 6,800 primary apartments launched (including new products and existing inventory). Among these, the number of luxury products (priced above 75 million VND per square meter) constituted 85%, while mid-range apartments accounted for just 15% (around 1,300 units); the affordable segment is no longer available.

Similarly, Cushman & Wakefield reported that in the first three months of the year, Ho Chi Minh City had around 2,400 new apartments launched (first-time sales), with the segment priced around 50 million VND per square meter making up only 6% of the supply, while the rest was primarily concentrated in the luxury and high-end segments. Last quarter, the average primary price of apartments in Ho Chi Minh City reached nearly 120 million VND per square meter, increasing by 28% from the previous quarter and 47% compared to the same period in 2024.

According to CBRE Vietnam, during the first three months, apartments in Ho Chi Minh City had prices starting from 60 million VND per square meter and going up over 500 million VND (excluding VAT). The new supply has pushed the average price of apartments up by 24% compared to the same period last year. The high-end product range dominates with nearly 80%, while products priced under 60 million VND per square meter account for about 10-15%, mostly being leftover inventory from previous quarters.

Real estate market in the Eastern region of Ho Chi Minh City, March 2025. Picture: Phuong Uyen

In evaluating the decline of the mid-range segment, Mr. Vo Hong Thang, Deputy General Director of DKRA Group, believes that in the context of rising costs related to land and project development, which are expected to increase in the coming years according to the new land price table, projects will have to adjust to higher prices. Particularly as the supply of legally clean land suitable for developing commercial housing projects in Ho Chi Minh City becomes increasingly limited, investors will base their selling prices on input costs, leading to a gradual reduction in affordable housing in major urban areas in general.

Agreeing with this view, Ms. Trang Bui, General Director of Cushman & Wakefield, stated that in the context of low supply in the market and high land prices, when investors finally clear legal hurdles (which often takes a very long time), they will prioritize launching high-end products due to better profits and liquidity.

Commenting on the supply trends this year, Ms. Cao Thi Thanh Huong, Senior Manager of the Research Department at Savills, indicated that the high-end segment will continue to dominate the real estate market in Ho Chi Minh City. This year, the city is expected to launch around 10,000 apartments, with over 80% of these priced at a primary rate of 75 million VND per square meter, excluding taxes and fees. The affordable housing segment only has 2,000 units, located far from the center, bordering Binh Duong, Dong Nai, or Long An. Although labeled as affordable, the projected prices for these projects are all above 55 million VND per square meter.

Experts share the common view that the supply of affordable apartments in Ho Chi Minh City will only improve with greater participation from social housing projects. Only when the supply of social housing improves can the prices of apartments in Ho Chi Minh City cool down somewhat.

Phuong Uyen