But the record price was achieved because a majority of new launches in the last three months were in the high-end and luxury segments priced at above VND100 million (US$3,870) per square meter, Trang Bui, CEO of Cushman & Wakefield Vietnam, said.
She said these developments are by companies renowned for premium offerings, such as Masterise Homes, Vinhomes, Gamuda Land, and Keppel Land.
The eastern and central districts of HCMC, where the high-end projects are largely concentrated, continue to lead the charge in new supply, accounting for some 53% of over 2,390 units launched in the first quarter.
The south and west, which still offer some mid-range projects (priced at around VND60 million per square meter), represent 19% and 15% of the supply.
Cushman & Wakefield found that the price surge caused a 58% decline in apartment absorption from the previous quarter, with just 1,100 units sold.
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Apartment buildings in Ho Chi Minh City in February 2025. Photo by VnExpress/Quynh Tran |
Developers have been trying to boost demand with incentives like extended payment plans of up to three years and discounts of 10-25%.
Other research firms, including Knight Frank and DKRA Group, have reported similar trends.
Knight Frank’s data shows that the average apartment price in HCMC in the first quarter reached nearly VND92 million per square meter, a 12% rise from the same period last year, with transaction volumes dropping by 47% compared to late 2024.
DKRA Group’s data shows that apartment absorption in the first three months of the year fell by 60% from the previous quarter.
Cushman & Wakefield CEO Trang expected HCMC to add around 9,500 new apartments in the second quarter, predominantly in the high-end segment with an average selling price of VND120 million per square meter.
If the prices continue to rise, demand is expected to gradually shift toward the city’s suburban areas and neighboring cities, where prices remain affordable.
