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Ho Chi Minh City apartments hit record $7,300/m² amid supply crunch
🇻🇳 Vietnam /Economy & Trade

Ho Chi Minh City apartments hit record $7,300/m² amid supply crunch

From Tuổi Trẻ · () Vietnamese

Translated from Vietnamese, summarized and contextualized by DistantNews.

At a glance

News Documents & data Context piece
  • In Q1 2026, Ho Chi Minh City's central districts saw a 62% quarterly drop in new apartment supply, with only 1,200 units launched.
  • The average primary apartment price in the core area reached a record high of nearly $7,300/m², a 53% year-on-year increase, but transaction rates fell 74% due to high costs and tight credit.
  • In contrast, surrounding provinces like Binh Duong led supply with over 7,000 new units and a 76.6% absorption rate, offering more affordable options.

Ho Chi Minh City's central real estate market is experiencing a significant downturn in new supply and a sharp increase in prices, creating a disconnect between luxury offerings and buyer demand.

In the first quarter of 2026, the city's core districts saw a dramatic 62% quarter-on-quarter decrease in new apartment launches, with only about 1,200 units hitting the market. This scarcity, coupled with a market dominated by luxury segments (72% of new launches), has driven average primary prices to a record high of nearly $7,300 per square meter. This represents a 19% jump from the previous quarter and a substantial 53% increase compared to the same period last year.

The selling price increased, increased rapidly in a short time, causing the market to "slow down considerably".

— Gia Hunga real estate broker in Ho Chi Minh City's central area, commenting on the market slowdown

However, this price surge has not translated into robust sales. Transaction rates have plummeted by 74% compared to the previous quarter, with fewer than 1,000 new units sold. Buyers are becoming more cautious due to high borrowing costs and tightened credit policies. Real estate brokers note that the market has "slowed down considerably" due to the rapid price increases and a mismatch between the available luxury units and the actual demand for more affordable and mid-range housing.

In stark contrast, the satellite provinces surrounding Ho Chi Minh City, including Binh Duong and Ba Ria-Vung Tau, are showing vibrant activity. These areas launched over 7,017 new apartments and recorded more than 6,100 successful transactions. Binh Duong, in particular, is a major supplier with 6,430 units launched, primarily in Thuan An and Di An. With average primary prices around $1,886 per square meter (a 7.4% quarterly decrease due to a higher proportion of mid-range units), Binh Duong is attracting both owner-occupiers and investors, achieving an impressive 76.6% absorption rate. Ba Ria-Vung Tau also shows signs of recovery with 587 new units and over 630 transactions.

The market is shifting to a multi-polar growth phase.

— Le Hoang Lan Nhu NgocSenior Director, Head of Strategic Consulting at Cushman & Wakefield Vietnam, on the market's evolving landscape
DistantNews Editorial

Originally published by Tuổi Trẻ in Vietnamese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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