Most HCMC apartments to cost $200,000-400,000 in next two years

By Ngoc Diem February 25, 2024 | 05:06 am PT

Apartment buildings, land plots and townhouses in HCMC's eastern area. Photo by VnExpress/Quynh Tran

Apartments sold in HCMC in the next two years will mainly be in the VND5-10 billion (US$200,000-400,000) price range with VND2-5 billion units becoming scarce, according to Savills Vietnam.

Giang Huynh, associate director at the real estate consultancy and head of research and the S22M platform at its HCMC office, said apartments are steadily rising, with 90% of transactions being done at the VND2-5 billion price point in 2023.

There was none at below VND2 billion. In a recent note Savills said supply last year was the lowest in 10 years at only 10,700 units. There were only 6,300 successful transactions.

Prices of high-end apartments in the primary market returned to the 2020 average of VND69 million per square meter, down 45% from 2022.

In terms of price per square meter, data from another real estate consultancy, CBRE, showed 84% of apartments offered for sale in the city last year cost VND50-98 million.

With virtually only high-end apartments being built, the number priced at under VND50 million plummeted. Affordable apartments have completely disappeared in the last few years.

The high prices in the city are fueling a trend of moving to nearby provinces to find affordable housing.

Savills experts said 96% of future apartment supply in the three neighboring provinces of Binh Duong, Dong Nai and Long An would be priced under VND5 billion.

Developers of many apartment projects in Dong Nai and Binh Duong are offering competitive prices.

According to Nguyen Van Dinh, president of the Vietnam Association of Realtors, many buyers are willing to live away from the city if it means large living spaces and integrated amenities.