The domestic real estate market is showing mixed developments. Supply increased by around 40% in the first half of the year, but most products are either high-priced or located far from central areas, while rising borrowing costs continue to make home purchases difficult for many people. Secondary apartment prices have begun to adjust in several localities, while land prices fell by around 2-3% from the previous quarter, according to the Ministry of Construction. In the affordable housing segment, the Hoang Nam Uyen Hung 2 social housing project in Tan Uyen Ward, Ho Chi Minh City, is expected to begin accepting purchase applications in the fourth quarter. The project has more than 800 units, with a provisional price starting at VND 19.8 million per square meter. Meanwhile, HoREA said that more than 146,000 accommodation real estate products, including condotels and new types of lodging, need to be governed by a unified legal framework. Many property companies are still being forced to scale back operations, reduce costs and seek partners to maintain cash flow as liquidity weakens, credit is tightly controlled and interest rates rise. Some businesses are also facing delays in land exploitation because of difficulties in determining land prices.
HCMC Apartment Prices Reach an Average of 91 Million VND/m², Up 36% in Q4 2024 According to Savills Vietnam's 2024 real estate market report , the average price of apartments in Ho Chi Minh City (HCMC) in Q4 2024 reached 91 million VND/m² (excluding taxes and fees), marking a 36% increase from the previous quarter and a 33% increase year-over-year . This is a new record high for the city's apartment segment. Previously, Avison Young Vietnam reported that 90% of the new supply launched in HCMC in the last three months of 2024 was priced between $3,000 - $5,000/m² (approximately 75 - 120 million VND/m²) . Meanwhile, data from OneHousing (a subsidiary of Techcombank) indicated that the average primary sale price in Q4 was about 85 million VND/m² , with nearly 40% of the supply in the luxury segment , priced between 120 - 290 million VND/m² . Reasons Behind the Sharp Price Increase Savills attributed the price surge mainly to the dominance of high-end apartments in the new...