The reporter noted that most real estate projects in Ho Chi Minh City are being sold at quite high prices.
For example, a rare project located on the "golden land" of District 1, luxury apartment Lancaster Legacy of Trung Thuy Group is opening for sale about 50 apartments in the next batch. The selling price of these new apartments ranges from 200 - 230 million VND/m2.
In Thu Duc City area, according to information from a sales consulting unit at Eaton Park - an apartment project located on the frontage of Mai Chi Tho Street, Thu Duc City of Gamuda Land - the selling price of apartments has increased compared to before Tet.
Last year, Gamuda Land had 2 bids for 4 towers at the Eaton Park project. The initial selling price was from 120 million VND/m2, and by the second phase, it had increased to 145 million VND/m2. Currently, the investor is offering the next round at about 160 million VND/m2.
Also before Tet, Masterise Homes announced the market of more than 600 apartments in the Masteri Grand View project - high-rise subdivision in The Global City New Urban Area, Thu Duc City. The expected selling price at that time was from 100 million VND/m2. However, according to information from brokers, the opening sale plan is being postponed because the market price level in this area is having good growth potential, so the project may be having a new adjustment to the selling price and will not be lower than the selling price of the adjacent project Eaton Park.
Statistics from market research unit Savills show that in the fourth quarter of 2024, Ho Chi Minh City had a total of 2,700 apartments traded. 78% of these are luxury apartments with a selling price of over 80 million VND/m2. Due to high prices of new supply and increased selling prices of existing projects, the average apartment price on the market reached 91 million VND/m2.
According to statistics from this unit, last year, apartments with a selling price of VND50 million/m2 or less only accounted for 18% of the total number of apartments sold in Ho Chi Minh City. This leads buyers with moderate budgets to seek neighboring markets such as Binh Duong, Dong Nai and Long An. In these places, apartment prices range from 30 - 40 million VND/m2.
Commenting on the Ho Chi Minh City real estate market, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA) said that in the past 5 years (2020-2024), Ho Chi Minh City has had a major decrease in the supply of commercial housing projects, leading to a major decrease in the supply of commercial housing products.
In particular, there is a serious shortage of affordable housing supply and social housing, which are the type of housing that meets the real housing needs of the majority of people with average and low incomes in society, including cadres, civil servants, state officials, cadres of the armed forces, workers, and immigrants.
The Chairman of HoREA believes that the continuous increase in housing prices in recent years is due to the limited supply of commercial housing projects, leading to a continued scarcity of commercial housing supply according to the law on supply and demand with an increase in apartment prices of about 15-20% in the period of 2015-2023 and with the adjusted land price list in 2024, housing prices can increase by 15-20% in 2025.
Dr. Nguyen Duy Phuong, Investment Director of DG Capital, said that when the project was extended too long, the enterprise had to bear all kinds of costs. In addition, when realizing that supply is limited but demand in the market is still very large, most investors will choose to develop the high-end segment to maximize profits, which is inevitable. The sharp increase in the land price list has unintentionally pushed up residential land prices. With newly announced projects, although businesses have created land funds for a long time, it is inevitable that investors will take advantage of the adjustment of the land price list to increase selling prices because input costs have increased too much.
