Record Prices Driven by High-End and Luxury Segments

The apartment price in Ho Chi Minh City (HCMC) has reached a new peak of nearly $4,700 per square meter, primarily due to the majority of new launches in the last three months being in the high-end and luxury segments. Trang Bui, CEO of Cushman & Wakefield Vietnam, highlights that these developments are by renowned companies such as Masterise Homes, Vinhomes, Gamuda Land, and Keppel Land.

Geographical Distribution of New Supply

The eastern and central districts of HCMC, where high-end projects are largely concentrated, continue to lead in new supply, accounting for 53% of over 2,390 units launched in the first quarter. Meanwhile, the south and west, offering mid-range projects, represent 19% and 15% of the supply respectively.

Apartment buildings in Ho Chi Minh City in February 2025. Photo by VnExpress/Quynh Tran

Impact on Market Absorption

The surge in prices has led to a 58% decline in apartment absorption from the previous quarter, with only 1,100 units sold. Developers are attempting to boost demand with incentives like extended payment plans and discounts.

Future Market Expectations

With HCMC expected to add around 9,500 new apartments in the second quarter, predominantly in the high-end segment, demand may gradually shift toward suburban areas and neighboring cities where prices remain more affordable.