Ho Chi Minh City apartment prices hit record highs

Ho Chi Minh City apartment prices hit record highs

Apartment prices in Ho Chi Minh City have reached an all-time high, averaging more than $4,690 per square metre in the first quarter of 2025, a 47 per cent increase on-year, according to a market report released by real estate consultancy Cushman & Wakefield on April 8.

Apartment prices have hit their highest ever in Ho Chi Minh City. Photo Le Toan

Compared to the previous quarter alone, prices rose 28 per cent, driven largely by the launch of new luxury and high-end projects, all priced above VND100 million ($,4000 per sq.m). These developments were launched by major real estate firms such as Masterise Homes, Vinhomes, Gamuda Land, and CapitaLand.

“The consistent price hikes are a direct result of the dominance of premium and luxury apartment launches in Q1,” said Trang Bui, country head of Cushman & Wakefield Vietnam. “These projects have significantly elevated the city’s overall price level,” she said.

New supply remains concentrated in the east and central districts with a strong focus on high-end developments, accounting for 53 per cent of total market supply. Mid-range housing, priced around VND60 million ($2,400) per sq.m, remains limited and is mostly found in the south and west, which represent 19 and 15 per cent of new supply, respectively.

However, soaring prices have weighed heavily on buyer demand. The number of successfully sold units in Q1 fell by 58 per cent on-quarter, with only 1,100 transactions recorded, a sharp decline in liquidity reflecting the widening mismatch between supply and demand.

“Despite efforts from developers to boost sales, including payment deferrals of up to three years and discounts ranging from 10 to 25 per cent, buyer appetite remains subdued,” said Trang.

Knight Frank Vietnam’s data shows the city’s average apartment price reached nearly $3,650 per sq.m in Q1, a 12 per cent on-year increase, while transactions dropped 47 per cent compared to the last quarter of 2024.

In the remaining quarters of 2025, approximately 5,900 new units are expected to enter the Ho Chi Minh City apartment market. In the next three years, HCMC is forecasted to welcome around 56,000 units. Demand is projected to recover after reaching its bottom in 2023, while selling prices should rise steadily thanks to supply expanding to suburban areas, bringing more diversity and affordability.

By 2028, Ho Chi Minh City’s overall selling price is expected to be nearly $4,300 per sq.m.

"The apartment market in Ho Chi Minh City is experiencing a slow recovery as new supply remains limited. While demand has been slow, reputable projects are still achieving positive sales, particularly in satellite areas, as buyers seek more affordable options amid supply shortages and legal obstacles. Looking ahead, the market is expected to recover, driven by a new legal framework and the development of numerous infrastructure projects," said Son Hoang, valuation and advisory associate director at Knight Frank Vietnam.

VIR