High-end apartment price climbs to new record in Ho Chi Minh City

This is the highest average price for apartments ever recorded.

Trang Bui, country head of Cushman & Wakefield Vietnam, attributed the increase in apartment prices in the city to newly-launched projects with over 2,390 apartments last quarter, which were all in the high-end and luxury segments and priced at above VND100 million ($3,833) per square meter.

The market has been led by developers specializing in high-end products such as Masterise Homes, Vinhomes, Gamuda Land, and Keppel Land.

The new supply has caused the average market price to surge significantly, Trang noted.

The number of newly-launched apartments in the first quarter decreased 12 percent compared to the previous quarter.

Cushman & Wakefield noted that the decline reflects the high apartment prices, with sales starting to slow down.

The new supply was evenly distributed across areas in Ho Chi Minh City, with 15 percent in the west, 19 percent in the south, 27 percent in the east, and 26 percent in the city center.

Trang warned that if the price jump continues, the Ho Chi Minh City apartment market could face a liquidity stagnation.

Apartment buyers may shift to suburban areas and second- and third-tier provinces where prices are more affordable for the majority of the population.

Cushman & Wakefield forecast that Ho Chi Minh City will see some 9,500 new apartments launched this quarter.

Around 35,000 apartments will be supplied to the market over the next three years.

The supply is expected to be around 10,000 and more than 15,000 units in 2026 and 2027, respectively, the real estate services firm added.

Currently, real estate developers have allowed buyers to make payments for three years and offered discounts ranging from 10 to 25 percent.

For some projects, customers can move in immediately after paying a portion of the apartment's value.