Savills Vietnam's report on the Ho Chi Minh City real estate market in the first quarter of 2025 shows a significant decrease in new supply due to the impact of the Lunar New Year holiday. Accordingly, only about 800 apartments were offered for sale on the market, a sharp decrease of 70% compared to the previous quarter, although still recording a growth rate of 29% compared to the same period in 2024.
Notably, more than half of the new supply focused on the next phase of large -scale projects in Ho Chi Minh City. Thu Duc and Binh Tan District. The only new project introduced in the quarter is The 9 Stellars - Alta Heights (District 9). The entire new supply belongs to the B -segment segment and class C shows that the scarcity of the affordable housing segment. Accordingly, the new supply under Grade C with a price of less than 50 million VND/m2 of hydroelectricity accounts for only 13%, from the second phase of the Green Town project (Binh Tan).
Limited supply of new supply and the fact that projects have been suspended and have not been restarted have caused the primary supply in the whole market to decrease by 24% compared to the previous quarter, reaching about 5,000 units. However, compared to the same period last year, primary supply still had a slight increase of 2%.
In addition to the decline in supply, the real estate market in Ho Chi Minh City in the first quarter of 2025 also witnessed a significant decline in trading activities. The total trading volume of the market decreased sharply by 46% compared to the previous quarter, reaching only about 1,400 units.
However, compared to the same period in the last two years, the trading situation still has more positive signals, driven by extended payment policies and loan support from investors. The housing demand in the market is still high, but has not been met, as shown by the low inventory absorption rate, only 23%.
In contrast, new supply has a significantly better absorption rate, reaching 61%. This shows that current buyers tend to be more strict in their decision to buy a house, prioritizing new projects with favorable locations, transparent legal status and the potential to benefit from future infrastructure development.
Ms. Giang Huynh - Director of Research and S22M ( Savills Vietnam) - commented that the real estate market in Ho Chi Minh City in the coming quarter is expected to have fluctuations when projects that have temporarily stopped selling are returning to the market and new supply can be added. However, the problem of affordable housing supply is still a big challenge for the market in the current context.
Currently, the supply of Class C apartments, the segment most interested in buyers, in Ho Chi Minh City is still low.
Savills experts said that the main cause of the congestion in the supply of affordable apartments comes from two factors including increasingly scarce land funds in Ho Chi Minh City and land prices, high development and construction costs. Therefore, investors who own land tend to prioritize the development of mid-range and high-end segments to maximize profits, instead of focusing on the affordable segment with lower profit margins.
In addition, in the past few years, the project's legal procedures have been congested, so the housing supply has not recovered. However, according to Savills, the prospects of new legal frameworks and new policies are expected to speed up the project implementation process, thereby unblocking the housing supply in the medium and long term.
