HO CHI MINH CITY APARTMENT MARKET
SUPPLY: NEW SUPPLY IS EVENLY DISTRIBUTED ACROSS VARIOUS REGIONS.
In Q1 2025, the number of new apartments for sale wil reach about 2,392 apartments. Compared to the previous quarter, the number of new apartments launched decreased by about 12%, with supply still primarily concentrated on the high-end and luxury segments. The Eastern area remains a hotspot in the apartment market, consistently leading in supply rates across quarters. However, the difference in new supply rates between regions this quarter is not significant. New supply is evenly distributed across regions, with rates of 15% in the West, 19% in the South, 27% in the East, and 26% in the CBD respectively. This quarter saw the commencement of operations and handover of a branded apartment project, significantly increasing the supply rate in the central area. Leading the apartment market are familiar developers: Masterise Homes, Vinhomes, Gamuda Land, and Keppel Land.
DEMAND: TRENDING DOWNWARDS
New absorption reached 1,101 units, reflecting a 36.23% increase compared to the same period last year but a decrease of approximately 58% compared to the previous quarter. This decline indicates that the significant rise in apartment prices has begun to slow absorption rates. Despite this, the apartment segment maintains strong liquidity, with housing and investment demand gradually shifting to suburban areas and second- and third-tier cities, where prices are more affordable.
PRICE: CONTINUES TO SET RECORDS
Apartment prices continue to establish new benchmarks, with the current price of US$4,691, increasing by nearly 28% compared to the end of 2024 and approximately 47% compared to the same period last year.
OUTLOOK: STARTING A NEW CYCLE
The market at the beginning of the year indicates a slowdown in growth, however, developers are strategizing and preparing for large-scale launches in the upcoming quarters. It is forecasted that approximately 35,000 apartments will enter the market over the next three years. Specifically, in Q2 2025, the market is expected to see around 9,500 new apartments launched. In 2026, supply is projected to be approximately 10,000 units, and it will exceed 15,000 units by 2027. Developers are also implementing extended payment plans of up to three years and offering discounts ranging from 10% to 25% to stimulate demand. Notably, customers can move into their homes immediately after paying a portion of the apartment's value.
HO CHI MINH CITY LANDED PROPERTY MARKET
SUPPLY: NOT DERIVED FROM NEW PROJECTS
The market demonstrated robust signs of recovery during Q1 2025. Ongoing and nearly completed projects continued to launch their final phases, collectively offering 178 units across three projects in Thu Duc City and one project in Binh Chanh District. Despite a nearly sixfold increase in the number of new landed properties launched compared to the same period in 2024, this supply did not originate from new projects. This trend indicates that the landed housing market in Ho Chi Minh City remains limited in terms of new supply.
DEMAND: ABSORPTION RATE PREDOMINATES IN THE EASTERN REGION
In Q1 2025, the townhouse and villa market in Ho Chi Minh City recorded 120 new transactions, reflecting a nearly 50% increase QoQ. This indicates robust market absorption. Notably, the Eastern region of the city accounted for 74% of the total transactions, equivalent to 89 transactions. The Western region, comprising Binh Tan and Binh Chanh Districts, recorded 29 transactions, representing 24% of the total market activity. Compared to the same period last year, the absorption rate in Q1 2025 remained high, demonstrating strong interest and demand from both buyers and investors. The concentration of transactions in the Eastern region underscores its status as a hotspot in Ho Chi Minh City's real estate market, characterized by numerous new projects and outstanding development potential.
PRICE: THE AVERAGE PRIMARY SELLING PRICE IN THE EASTERN REGION HAS INCREASED SIGNIFICANTLY
In Q1 2025, the primary selling price increased by nearly 12% compared to the previous quarter, reaching US$ 11,978/sq.m. This price surge is primarily driven by existing projects in the Eastern region, specifically Thu Duc City. Consequently, the average primary selling price in Thu Duc City reached approximately US$ 16,423/sq/m, nearly matching the same period last year. This trend further solidifies the Eastern region's prominent position in the landed property market. Price fluctuations in other areas of the city increased slightly in Binh Chanh district or decreased slightly in Binh Tan district due to projects developed by unknown investors.
OUTLOOK: A NEW YEAR WITH IMPROVED PLANNING
Starting from Q2 2025, the landed property market is anticipated to become increasingly dynamic, with supply projected to rise from 600 units to over 2,200 units by 2027. Prominent developers such as Khang Dien, Masterise Group, Dai Phuc, and Vin Group are actively launching new inventories and initiating sales for new projects. Additionally, government policies aimed at resolving legal procedures for projects and promoting real estate market growth—such as provincial mergers and boosting public investment projects—will further enhance the vibrancy of the real estate market in Ho Chi Minh City and neighboring provinces.
Moreover, during this period, interest rate support measures from banks will also contribute to market growth. Notably, BIDV Bank's loan policy offers an interest rate of 5.5% per annum, fixed for three years.
Learn more by downloading our most recent Ho Chi Minh City Residential MarketBeat.
