A report from market research unit One Housing (Techcombank) shows that in 2024, the average primary selling price of apartments in Ho Chi Minh City will be about 84 million VND/m2, an increase of 15% over the same period in 2023.
In the East alone (Thu Duc City, where the price increase rate is the highest in the whole region), the average price is over 100 million VND per square meter, an increase of 18.3% over the same period in 2023.
According to One Housing, the city in general and the East in particular have recorded a sharp increase due to a shortage of supply and the strong boom of luxury and super luxury real estate.
Accordingly, in 2024, Ho Chi Minh City will have about 5,200 new apartments for sale (first sale), 90% of which are high-end products.
The Eastern area accounts for 72% of the total supply, more than 40% of which are products in the luxury and super luxury segment, priced at 120-450 million VND/m2, the rest are mostly high-end houses, priced over 55 million VND/m2.
Despite high prices, the absorption rate of new projects in the East still reached 100% in the context of scarce supply, especially in projects in the old District 2 area (now Thu Duc city), the absorption rate of many projects was recorded at over 146%.
The upward trend in home prices is expected to continue through 2025.
According to OneHousing, the new supply in Ho Chi Minh City will be about 12,000 units, of which newly opened projects are mainly in the East and nearly 90% of the supply is focused on the high-end and luxury segments, with expected prices at projects all above 100 million VND/m2.
Apartment prices may increase by 7-10% according to price adjustments of new projects. Finding suitable products becomes more difficult for both home buyers and investors.
According to many experts in the real estate sector, it is currently very difficult for businesses to find land to build mid-range housing because there is not much clean land left and the price is high - making it difficult for investors to develop projects that are suitable for the finances of the majority of buyers. This is the reason why the high-end and luxury housing segment dominates in Ho Chi Minh City.
The story of land fund development is no longer easy. This is a challenge and a headache for many businesses.
Speaking to reporters, the general director of a real estate company in Ho Chi Minh City said that the company's goal is to find land at a reasonable price to balance the cost of developing affordable products. However, land prices and land use costs are increasing significantly compared to before, causing many difficulties for investors who want to develop this type of housing.
"Selling at high prices makes it difficult for buyers to access. Businesses themselves are under a lot of pressure when land prices increase sharply. Increased project development costs will directly affect the selling price of products and narrow the accessibility of home buyers. Business revenue will also be affected," the general director confided.
Mr. Vo Huynh Tuan Kiet, Director of CBRE Vietnam, said that land fund growth is a criterion and annual goal that real estate businesses must implement.
With the regulations from three new Laws (Land, Housing, Real Estate Business), businesses will have different ways to access land funds.
Most investors are having to carefully calculate to adjust input costs and focus on the strategy of expanding land funds to satellite cities and neighboring areas. This is and will be the main direction of the market in the coming years.
Strong investment in infrastructure and cost pressure will push both long-standing investors and new players to the market to move together.
