Market Overview

In a surprising turn of events, only 1% of villas and townhouses were sold in the southern Vietnam property market in 2025, according to a report by DKRA Group. Out of 5,000 units available in Ho Chi Minh City (HCMC) and its neighboring provinces, a mere 75 found buyers.

Comparative Analysis

This marks a significant drop from the previous year, where 16% of the supply was sold, with an annual absorption rate of 21%. The study covered areas including Binh Duong, Dong Nai, Long An, Ba Ria - Vung Tau, and Tay Ninh.

Current Market Trends

Despite a strong recovery in the land and apartment sectors, villas and townhouses have seen a decline in interest. Searches for these properties accounted for less than 2% of total inquiries in HCMC and 2-5% in nearby localities.

Challenges and Strategies

Vo Hong Thang, deputy CEO of DKRA Group, attributes this downturn to unappealing products and high prices. With prices in HCMC starting at VND5.3 billion and reaching up to VND700 billion, and in Dong Nai ranging from VND3.5 billion to VND228 billion, investors are hesitant. Developers are now offering extended payment plans instead of price cuts, though these measures have yet to significantly improve liquidity.

Future Outlook

Looking ahead, the southern Vietnam property market is expected to introduce 3,000-5,000 new units this year. However, primary prices are predicted to remain high due to increasing costs, with HCMC properties priced above VND30 billion and provincial units around VND10 billion.