38.5% of them are priced between VND3 billion and VND5 billion, according to a recent report by the Institute of Construction Economics.
Rapid price hikes have pushed apartments far beyond the affordability of most households, particularly low-income groups, it said.
Resale units saw prices surging because newly launched units were mostly priced at high level of at least VND50 million per square meter last year, it added. With this price tag, a typical 65-square-meter two-bedroom unit is priced at VND3.25 billion.
“The prioritization of high-end segments by developers has increasingly disrupted the balance of housing supply.”
Data from the Vietnam Association of Realtors (VARS) confirmed the trend.
Last year, nearly 10,000 apartments priced above VND80 million per square meter were launched in Hanoi – three times the number recorded in 2023 – illustrating the dominance of luxury properties.
Apartment buyers have few options in central districts. Even in suburban areas, where supply is growing, prices now range from VND70–90 million per square meter.
An imbalance is also evident in HCMC, where around 37% of resale apartments are priced above VND5 billion.
David Jackson, CEO of Avison Young Vietnam, noted that apartment prices in Ho Chi Minh City currently range between VND75 and VND120 million per square meter.
Affordable apartments priced below VND40 million per square meter have nearly vanished, with projects in the VND50–55 million range accounting for roughly 10-15% of the market, he added.
He said that in the coming years, such prices may only be found in provincial markets.
Jackson also explained that developers are “less motivated” to build affordable housing due to profitability challenges.
Developers face rising land costs due to updated land pricing frameworks, increased material costs, and prolonged legal procedures, all of which drive up project expenses, he added.
This has resulted in a scarcity of primary-market apartments under VND3 billion in the two major cities, he said.
The rapid rise in housing prices has created significant challenges for household affordability. Data from the General Statistics Office shows that in 2024, the average monthly income of workers increased by 8.6% to VND7.7 million.
However, housing prices in the two largest cities are rising at double-digit rates.
A recent VnExpress survey of over 3,000 readers found that 52% could only afford apartments priced below VND2 billion.
VARS chairman Nguyen Van Dinh warned that in the long term, if real estate price increases are not addressed, significant social and market consequences could arise.
He recommended that authorities consider measures such as supporting land clearance for affordable housing projects to increase the supply of reasonably priced homes.
