HCMC Apartment Prices Hit Record $3,560/sqm in 2024
According to Savills Vietnam, apartment prices in Ho Chi Minh City (HCMC) hit a record high of 91 million VND/sqm ($3,560) in Q4 2024, marking a:
- 36% increase from the previous quarter
- 33% year-over-year growth
This rapid price surge reflects the market’s dominance of luxury and high-end developments, with nearly 90% of newly launched apartments priced between $3,000–$5,000/sqm.
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What’s Driving the Price Boom?
Luxury Segment Dominates New Supply
- In Q4 2024, 2,700 newly launched apartments had starting prices above 80 million VND/sqm ($3,125).
- An additional 3,800 units from existing projects adjusted prices upward, ranging from 75 million to 450 million VND/sqm ($2,900–$17,500).
- 40% of new inventory fell into the ultra-luxury category, exceeding 120 million VND/sqm ($4,700).
Scarcity of Affordable Housing
- Only 1,300 units under 65 million VND/sqm ($2,500) were available—a decade-low supply.
- Budget-friendly apartments under 50 million VND/sqm ($1,950) accounted for less than 15% of total stock.
- Rising land and development costs have made it increasingly difficult for developers to launch lower-cost housing.
2025 Market Outlook: More High-End Homes Ahead
Projected New Supply:
- 10,000 new apartments expected in 2025.
- 80% of these units will be priced above 75 million VND/sqm ($2,900).
- Only 2,000 units (20% of inventory) will be in the “affordable” range, at 50-65 million VND/sqm ($1,950–$2,500).
Continued Focus on Luxury Developments
- Developers remain confident in high-end housing demand, as 76% of successful Q4 2024 sales were in the luxury segment.
- Upcoming projects are raising prices by at least 5% upon launch.
- Some revived stalled projects are expected to sell at 2–3x their previous prices.
What This Means for Buyers & Investors
For Homebuyers: With the scarcity of mid-range options, buyers may need to consider suburban areas for affordability.
For Investors: Strong absorption in the high-end segment suggests that luxury properties will continue to be a lucrative investment in 2025.
For the Market: As affordable housing dwindles, the market is becoming increasingly premium-driven, shaping HCMC as Vietnam’s top luxury real estate hub.
The Future of HCMC’s Apartment Market
With record-high prices and a luxury-driven market, Ho Chi Minh City’s real estate sector is entering a new phase. Limited affordable supply means prices are expected to remain elevated, with continued demand for high-end properties in 2025.
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