High-End Projects Drive Up Apartment Prices in Thu Duc City

The recent surge in apartment prices in Thu Duc City, reaching nearly $4,000 per square meter, has been attributed to the launch of several high-end projects in the second half of the year, according to market research firm OneHousing.

Real estate consulting firm Avison Young Vietnam reports that apartments in what was previously District 2, now part of Thu Duc City, are priced between VND125-350 million per square meter, while in other areas, they range from VND60-100 million.

OneHousing notes that apartment prices in Thu Duc have been rising at an annual rate of 12% over the last three years. Previously, units costing around VND50 million per square meter made up most of the supply in 2021 and 2022, but these have since become scarce.

David Jackson, CEO of Avison Young Vietnam, explains that the average apartment price in Thu Duc has risen as high-end supply increases while cheaper units disappear. Tran Dinh Huy, an executive at real estate firm Hoa Phat, adds that only financially strong developers are willing to start new projects due to high construction costs, focusing on the high-end segment for better profits.

Avison Young forecasts around 35,600 new apartments to be built in Ho Chi Minh City by 2026, with 52% of them in Thu Duc. However, prices are likely to rise by 6-10% from current levels due to higher land prices and rising construction costs.

OneHousing warns that homebuyers may struggle to find suitable properties in the future as upcoming projects are mostly expected to cost over VND100 million per square meter.