High-Priced Dominance in HCMC's Housing Market

Vietnam’s largest city, Ho Chi Minh City (HCMC), has witnessed a significant shift in its real estate landscape, with four new projects introducing 3,353 apartments, all falling into the high-priced category, as reported by the Ho Chi Minh City Real Estate Association (HoREA). This marks a 15% decrease compared to the previous year, with the mid-range and affordable segments priced at VND40 million or less per square meter.

Price Trends and Market Imbalance

According to Avison Young Vietnam, primary market prices have seen an increase of 4-6% at new launches and 2-4% at existing projects offering new units. The second quarter saw new launches with apartments costing VND55 million or more, highlighting a nationwide supply imbalance.

Buildings in Ho Chi Minh City. Photo by VnExpress/Thanh Nguyen

Luxury vs. Affordable: A Growing Divide

The Vietnam Association of Realtors highlighted that 36,000 new apartments were launched in the first half of 2025, doubling last year’s figures. However, over 62% were priced above VND80 million per square meter, with luxury apartments dominating the market. Mid-priced units accounted for just 30%, mostly located outside HCMC and Hanoi.

Future Outlook and Challenges

Experts warn that the absence of mid-range and affordable housing is distorting the market structure, with prices expected to rise by 8-10% annually. Factors such as scarce urban land, rising construction costs, and the new land price framework are driving developers towards high-profit projects, leaving the affordable segment largely untapped.