Apartment prices in Ho Chi Minh City increased by more than 30% after one year

The latest real estate market report of the third quarter of the past year from market research units shows that the supply of new apartments in Ho Chi Minh City after the merger has improved, doubling the total supply in the first half of 2025. Along with that, apartment prices continue to be pushed to new levels. However, the market absorption rate in the past quarter also showed many signs of slowing down from the buyers.

The latest report from CBRE Vietnam shows that in the third quarter, the average selling price of apartments reached VND87 million/m2, an increase of more than 30% over the same period, followed by an increase of 25% over the same period last year. The reason is said to be supply not meeting demand and high input costs of projects.

Mr. Vo Huynh Tuan Kiet - Director of Housing Marketing Department, CBRE Vietnam said: "Recent changes in cost mechanisms, land prices... have also partly pushed up input costs of many projects. Investors tend to increase prices and even with current market factors, it is unlikely that commercial housing will slow down the increase."

However, according to CBRE's report, although the supply of new apartments in the third quarter increased very high, 19 times higher than the same period last year. However, the absorption rate decreased sharply when the absorption rate only reached 68%. The reason is said to be because the price level has increased too quickly, causing buyers to consider more carefully before making a decision.

Mr. Su Ngoc Khuong - Senior Director of Savills Vietnam commented: "Ho Chi Minh City has recently launched only mid- and high-end products. Compared to the average income per capita and the people's ability to pay, I think it is very difficult for people to buy, so the majority of buyers are only investors."

Faced with this situation, policy proposals on tightening credit for buying second and third homes or taxing real estate speculation are being discussed by the Government , seeking opinions from market members in order to quickly find solutions to "restrain" the price increase.

Mr. David Jackson - General Director of Avision Young Vietnam assessed: "Tightening credit to control speculation is only effective when combined with comprehensive solutions. Vietnam needs to continue to increase the supply of affordable housing and social housing to meet real housing needs, or in other words, so that low-income people do not have to compete directly with high-income groups."

In fact, in the Ho Chi Minh City market, newly opened projects with prices above 120 million VND/m2 are increasingly accounting for a high proportion, causing the market to lean towards the high-end segment, while the mid-range supply is rapidly narrowing, limiting almost all options for real buyers.

Source: https://vtv.vn/price-of-apartments-in-ho-chi-minh-city-increases-by-30-years-100251016145323512.htm