Apartments under 2 billion VND have become 'extinct', the segment under 3 billion VND is about to 'follow'

(CLO) The segment of apartments under 3 billion VND in Ho Chi Minh City is gradually disappearing, such as the segment of apartments under 2 billion VND has not appeared since 2023, or apartments under 1 billion VND have not appeared since 2020.

According to the OneHousing Center for Market Research and Customer Insights, the lack of improved supply and the scarcity of mid-range projects have pushed the average selling price of the entire Ho Chi Minh City real estate market in the third quarter of 2024 to continue to increase, reaching VND80.2 million/m2, up 5% over the previous quarter.

The high-end and luxury segments continue to dominate with 90% of newly opened apartment supply in Ho Chi Minh City priced from VND60 million/m2 (excluding VAT and maintenance fees) or more. In particular, the East, which accounted for 65% of newly opened supply in the first 9 months of the year in Ho Chi Minh City, has established a new price level.

Old projects that were previously suspended have shown signs of restarting and all have expected prices 2-3 times higher than the previous opening prices. In addition, most of the projects preparing to open for sale in this area also have expected prices of over 100 million VND/m2.

The line of apartments under 3 billion VND in Ho Chi Minh City is gradually disappearing. (Photo: ST)

Therefore, the segment of apartments under 3 billion VND is gradually disappearing, such as the segment of apartments under 2 billion VND has not appeared since 2023, or apartments under 1 billion VND have not appeared since 2020.

Mr. Tran Minh Tien, Director of OneHousing Center for Market Research and Customer Insights, explained that in big cities like Ho Chi Minh City, "clean" land with full legal status to develop commercial housing projects is increasingly limited, causing land prices to increase.

“HCMC has applied a new land price list until December 31, 2025 and a new land price list updated annually from 2026, making compensation for site clearance more costly. Along with macro fluctuations, project development costs have increased, causing apartment projects under VND3 billion to gradually disappear and tend to shift to neighboring provinces, where land funds are more abundant and development costs are lower,” said Mr. Tien.

Despite high prices, the real estate market in Ho Chi Minh City is showing that supply may increase sharply in the coming time. The simultaneous launch of other projects in December and the restart of previously suspended projects show the positive impact of the amended Laws issued in August 2024, thereby strengthening the confidence of homebuyers and investors.

Mr. Tran Minh Tien said that the new supply expected in 2025 could double that of 2024, about 12,000 units, marking the recovery of the apartment market in Ho Chi Minh City.

The expert commented that the high-rise market in Ho Chi Minh City in the period of 2024 - 2025 will receive 3 growth drivers from infrastructure that is focused on synchronous development; amended laws that "unblock" legal issues; and housing demand from the growing middle class in Vietnam.

“The current Ho Chi Minh City market can be considered a good time to consider investing. Investors are increasingly flexible with payment policies and financial support, helping customers easily access quality projects. Projects in prime locations still record quite good price increases. However, investors and home buyers need to choose products that suit their needs and financial capabilities,” said Mr. Tien.

Source: https://www.congluan.vn/tp-hcm-can-ho-duoi-2-ty-dong-da-tuyet-chung-phan-khuc-duoi-3-ty-dong-sap-noi-got-post324084.html