Apartment prices in Thu Duc City near $4,000 per square meter

It was driven up by the launch of several high-end projects in the second half, according to market research firm OneHousing.

Real estate consulting firm Avison Young Vietnam said apartments in what was previously District 2 before it became part of Thu Duc City cost VND125-350 million per square meter, while in other areas they are priced at VND60-100 million.

OneHousing said apartment prices in Thu Duc have been rising at 12% annually for the last three years.

Those costing around VND50 million per square meter used to make up most of the supply in 2021 and 2022 but have since become scarce.

David Jackson, CEO of Avison Young Vietnam, said the average apartment price in Thu Duc rose as high-end supply is increasing while cheaper units are disappearing.

Tran Dinh Huy, an executive at real estate firm Hoa Phat, said only financially strong developers are willing to start new projects right now due to the high construction costs.

"But they focus on the high-end segment since it offers better profits than affordable housing."

Avison Young forecasts around 35,600 new apartments to be built in HCMC by 2026, 52% of them in Thu Duc.

But prices are likely to rise by 6-10% from current levels due to higher land prices in the new official price list and rising construction costs, it noted.

OneHousing said homebuyers would have a hard time finding suitable properties in future as upcoming projects are mostly expected to cost over VND100 million per square meter.