Ho Chi Minh City's South: Apartment shortage persists, old projects fetch high prices

Ho Chi Minh City's southern districts are experiencing a significant shortage of new apartments, pushing prices for existing properties to as high as 300 million VND (approximately $12,000 USD) per square meter. This area, known for its rapid urbanization and well-developed amenities, now faces a critical imbalance between sustained housing demand and limited new supply.

The majority of current transactions are concentrated in the secondary market, as buyers turn to projects developed years ago due to the scarcity of new offerings. Prices for these established apartments have steadily increased, with many now trading between 100 million and 300 million VND per square meter, depending on location and quality.

The southern region's appeal is further bolstered by ongoing infrastructure development, including the Thu Thiem 4 and Nguyen Khoai bridges, and a proposed metro line connecting the city center. Amidst this, the emergence of new projects is anticipated to help ease the supply crunch. One notable development is TT Genesis in Nha Be, a joint venture involving Vietnamese, Japanese, and Singaporean firms, which will offer approximately 1,400 apartments with an investment of over 2,000 billion VND (around $80 million USD).

"The new supply in Ho Chi Minh City's southern area is very scarce, while infrastructure investment is accelerating and surrounding facilities are synchronized," said Nguyen Dinh Truong, General Director of the joint venture. "Demand for housing in this area is very large, but there is a lack of new supply for buyers to choose from. Most transactions come from the secondary market (resale) of projects developed decades ago. Currently, the price level of these projects is quite high, ranging from 100 to 300 million VND/m2."

Beyond the supply issue, the southern real estate market is also witnessing a shift in product development. Developers are increasingly focusing on enhancing living experiences and catering to diverse usage needs, moving beyond competition based solely on location or scale. This trend is evident in both apartment and low-rise housing segments, with innovative models like integrated commercial townhouses featuring private swimming pools emerging in nearby provinces.

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The new supply in Ho Chi Minh City's southern area is very scarce, while infrastructure investment is accelerating and surrounding facilities are synchronized. Demand for housing in this area is very large, but there is a lack of new supply for buyers to choose from. Most transactions come from the secondary market (resale) of projects developed decades ago. Currently, the price level of these projects is quite high, ranging from 100 to 300 million VND/m2.