Rising Property Prices in Ho Chi Minh City

The real estate market in Ho Chi Minh City and its surrounding areas continues to experience a surge in property prices. According to a market report for the first two months of 2024, the supply of new apartment units reached only 440, which is 66% of the same period last year. This decrease in supply is primarily due to the concentration of new projects being launched before the Lunar New Year, mainly in Ho Chi Minh City, Binh Duong, and Ba Ria – Vung Tau. The demand for these new units also decreased by 53% compared to the previous year, partly influenced by the extended Lunar New Year holiday.

Among these new apartment units, the mid-range segment (known as class B) accounted for 76% of the supply and 93% of the total market demand. These units are primarily located in the western part of Ho Chi Minh City. Developers continue to offer incentives such as quick payment discounts, extended payment terms, and promotional giveaways to stimulate market demand. The average selling prices of these units remained relatively stable, with some projects recording a slight increase of 3% – 6% in Ho Chi Minh City. These projects have complete legal documentation, well-progressed construction, and quick handovers.

In the townhouse/villa segment, only 98 new units were launched in the first two months of 2024, representing a slight decrease of 27% compared to the same period last year. However, the absorption rate of these new units remained low, accounting for only 16% of the total supply. Ho Chi Minh City led the market with a 52% supply share and a 94% share of new unit sales.

In regions such as Long An, Ba Ria – Vung Tau, and Tay Ninh, there is a scarcity of new projects being launched in the first two months of 2024. Despite facing increased input costs, the primary price range did not experience significant fluctuations compared to the previous sales phase. Developers in these regions continue to offer discounts, banking support, and flexible payment schedules to maintain market demand. The secondary price range remained relatively stable compared to the end of 2023. Transactions mainly occurred in projects with guaranteed construction progress, reasonable prices, clear legal documentation, and reputable developers in the market.

In the coming months, it is expected that the supply of townhouse/villa units will slightly increase compared to the same period in 2023. However, significant changes are unlikely to occur in the short term. Most new projects will be concentrated in Ho Chi Minh City, Long An, Dong Nai, and Binh Duong.

As for land plots, there was one new project and three new phases launched in the market, offering a total of 138 plots, a 14% decrease compared to the same period last year. However, only seven plots were sold, representing a 25% decrease in new sales. Transactions mainly occurred in the price range of around 21.5 million VND/m2.

Looking at specific locations, Long An accounted for the majority of supply and new unit sales, with shares of 60% and 58% respectively. Binh Duong and Dong Nai had supply shares of 25% and 15% respectively. Tay Ninh, Ba Ria – Vung Tau, and Ho Chi Minh City did not record any new supply.

In terms of land prices, new land plots in Long An ranged from 17.2 to 54.9 million VND/m2, while prices in Binh Duong ranged from 14.5 to 16 million VND/m2, and Dong Nai ranged from 12.3 to 13.7 million VND/m2. Overall, the primary price range did not experience significant fluctuations compared to the previous sales phase. Developers continue to offer preferential policies such as extended payment terms, guaranteed profits, and discounts to stimulate market demand. The secondary market has remained relatively stable since the end of 2023, with average liquidity and projects with completed infrastructure and clear legal documentation attracting investor attention.

According to DKRA, the supply of new units in the upcoming months is expected to show continued growth, with most projects concentrated in areas adjacent to Ho Chi Minh City.

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