High-Priced Housing Dominates HCMC Market

In a significant shift in the Ho Chi Minh City (HCMC) real estate market, an overwhelming 80% of new apartments are set to be priced above $2,500 per square meter, according to property consultancy Savills. This trend underscores the city's rapid urbanization and the increasing demand for high-end living spaces.

Supply Trends and Price Projections

Another leading property services firm, One Housing, forecasts the release of 10,000-12,000 new units this year, with a staggering 88% priced at VND60 million or higher. This indicates a clear market preference for premium real estate developments.

Buildings in the south of Ho Chi Minh City. Photo by VnExpress/Quynh Tran

Impact on Affordable Housing

The decline in the affordable housing segment is a growing concern, as it limits homeownership opportunities for young people and low-income workers. Giang Huynh, head of research at Savills, highlights the challenge of finding reasonably priced units even in non-central areas, as prices continue to surge.

Future Outlook

With most of the upcoming supply concentrated in old projects' next phases and a few awaiting licenses in outlying districts, the HCMC real estate market is poised for continued growth. However, the sharp increase in prices, with the primary market average reaching VND84 million per square meter last year, up 15% from 2023, raises questions about long-term affordability and accessibility.