The Ho Chi Minh City real estate market research report by Cushman & Wakefield Company said that in the first quarter of 2025, the number of newly opened apartments reached about 2,392 apartments, down about 12% compared to the previous quarter and the supply was still mainly concentrated in the high-end and luxury segments.
In this quarter, a branded apartment project has begun to operate and hand over houses to customers. This project has pushed the supply ratio in the central area to increase sharply. Leading the apartment market is still the name of familiar development units: Masterise Homes, Vinhomes, Gamuda Land, Kepple Land.
In terms of liquidity, the new absorption reached 1,01 units, up 36.23% over the same period last year but down approximately 58% compared to the previous quarter. This decline reflects that apartment prices have increased and absorption has begun to slow down. Housing demand and investment demand are starting to shift gradually to suburban areas and provinces with lower prices.
Cushman & Wakefield said that in the first three months of 2025, the segment costs around VND 50 million per m2, accounting for only 6% of supply, the rest of the basket is mainly concentrated in high -end and luxury segments. On average, the primary price of Ho Chi Minh City apartment is nearly 120 million VND per m2, up 28% compared to the previous quarter and 47% compared to the same period 2024.
The market research report from DKRA Group Consulting and Service Group also said that in the first quarter of 2025, Ho Chi Minh City will have about 6,800 apartments for primary sale (including new products and inventory). Of which, the number of high-end products (selling price over 75 million VND/m2) accounts for 85%, the rest are mid-range apartments of only 15% (about 1,300 apartments); the affordable segment alone no longer appears.
Dr. Nguyen Duy Phuong, Investment Director of DG Capital, analyzed that all input factors of project development enterprises such as: land tax costs according to the new price list, construction costs, investment in product design... are all increasing significantly.
"In the context of increasingly scarce land funds, to own a beautiful location, especially in the center, businesses have to spend a huge amount of money. When land prices are high, investors make affordable products and will certainly suffer losses. The pressure from limited supply and increased input costs have caused investors to adjust their strategies, focusing on developing high-end and luxury projects, said Dr. Phuong.
According to forecasts from many market research companies, the high-end segment will continue to dominate the exclusive real estate playground in Ho Chi Minh City. This year, the city will have about 10,000 apartments for sale, more than 80% of which is being priced at VND75 million/m2, excluding tax and fee. The affordable housing segment has only 2,000 units, located far from the center, bordering Binh Duong and Dong Nai or Long An. Although they are known as affordable, the expected prices of these projects are all over 55 million VND/m2. That shows that owning a house suitable for workers' income is very difficult.
