The newly released Ho Chi Minh City real estate market research report for the fourth quarter of 2024 by One Mount Center for Market Research and Customer Insights shows that the Ho Chi Minh City apartment market in 2024 recorded a significant decrease in new supply. The total number of newly launched apartments only reached approximately 5,200 units, down 40% compared to 2023.
However, in the fourth quarter of 2024, the market witnessed a strong recovery when new supply reached more than 3,400 units, nearly 30 times higher than in the third quarter of 2024, accounting for 66% of the total new supply for the year. This is a positive result after the revised laws were applied and the legal issues of the projects were gradually resolved.
The East is still the focus of the market, accounting for 72% of total supply. At the same time, there is a clear shift in product segments, with the luxury segment dominating (40%).
New supply for the whole year of 2024 remains low compared to the previous period. The year-end market recorded positive signals when legal issues were gradually resolved, and supply grew significantly in the fourth quarter of 2024.
In 2024, the average selling price of Ho Chi Minh City apartment is about 84 million VND per m2, an increase of 15% compared to the same period in 2023. Particularly in the East (Thu Duc City, where the highest price growth rate in the whole region), an average of over 100 million VND/m2, up 18.3% over the same period in the same period in 2023.
The impressive growth of the luxury segment in 2024, accounting for approximately 40% of new supply. The absorption rate of new supply reaching over 100% in the context of scarce supply shows that housing demand remains stable.
Most of the newly opened projects achieved positive sales rates, especially in projects in District 2 (old) area reaching over 90%. The average selling price of the whole market grew higher than previously forecast. Newly opened projects in the East area are the main driving force for the price increase of the apartment market in Ho Chi Minh City.
One Mount Center for Market Research and Customer Insights believes that 2025 marks the beginning of a new supply recovery phase. However, growth is expected to be steady and sustainable, thanks to the Government’s efforts to resolve legal issues, along with investor confidence gradually improving in 2024.
A clear shift to the high-end and luxury segments will be the dominant trend. Large-scale projects, especially urban areas and metropolises, will not only meet the demand for high-end housing but also reshape the appearance of urban areas.
Faced with the increasingly limited land fund in the city center and the continuously increasing real estate prices, the trend of moving to satellite urban areas and TOD (urban development model based on public transport system) has become more evident than ever. Strong investment in connecting transport systems has created favorable conditions for the development of satellite urban areas and TOD, shortening geographical distances and travel time.
The apartment segment priced from 5 to 10 billion VND is the focus of attracting customers, showing the demand for owning high-quality housing at a reasonable price. The multi-functional urban area model is increasingly popular, meeting the modern living trend, where residents can enjoy a comfortable and complete life without having to travel too far. In the Southern region, home buyers are particularly interested in factors such as a clean living environment and a diverse system of shopping and entertainment facilities.
