Office worker Huong, 41, plans to buy a 80-square-meter apartment in District 4, but was surprised by the recent price hike. “The apartment is now priced at VND7.1 billion (US$270,700), 29% higher than last year, since the owners will soon receive title deeds.”
Sometimes housing projects fail to meet all legal requirements for buyers to be issued the documents, which brings down the value of the apartments.
Duc, 34, an IT engineer, is also scratching his head looking for a new apartment amid high prices.
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Apartment buildings in east HCMC. Photo by VnExpress/Quynh Tran |
In the middle of last year he wanted to buy an apartment for VND2.8 billion, but the price has now gone up 21% to VND3.4 billion. “The jump came amid rumors of the building being granted title deeds.”
Data from VnExpress indicates that secondary market prices for older projects, delivered years ago but still without title deeds, have risen 15-20% following legal resolution in Vietnam’s biggest city.
At Saigon Royal in District 4, prices have climbed from VND80 million per square meter in July last year to an average of VND105 million now, marking a more than 20% increase.
The nearby The Tresor project has also seen prices jump from VND60 million to VND85 million, a 24% rise within a year.
Apartments at Saigon Gateway, priced at VND26-35 million per square meter last year, now cost VND35-42 million, a 22% uptick.
In the second quarter secondary market apartment prices averaged nearly VND100 million per square meter, a 9.4% increase year-on-year, according to property consultancy JLL Vietnam.
Listing platform Batdongsan reported a 20-33% jump from 2024, with the highest being in the east, particularly along Hanoi Highway and in the Thu Thiem Urban Area.
The Ministry of Construction said average apartment prices in HCMC were up 36% last quarter to VND89 million per square meter.
Tran Nam, a broker in south HCMC, said as news of imminent issuance of title deeds spread, many owners have raised asking prices by VND200-500 million. “In some cases, brokers could not update listings fast enough before owners demanded price adjustments.”
This trend is common in apartments delivered years ago but with incomplete legal status. Le Thi Nhu, a broker in Thu Thiem, said: “As soon as a document confirms legal paperwork has been submitted, the market reacts instantly.”
She explained that owners often pull old listings and repost with prices 10-15% higher. Industry experts highlight that title deed issuance significantly influences market sentiment.
Phan Cong Chanh, CEO of property developer Phu Vinh Company, described title deeds as a “key unlocking the biggest bottleneck,” reassuring buyers and driving rapid price increases.
But he cautioned that some owners exploit the fear of missing out to push prices beyond the property’s true value.
Dinh Minh Tuan, southern region director at Batdongsan, said the merest hint of title deed issuance could boost prices by 5-10%, with actual issuance driving 20-30% increases, depending on location and market segment.
But he warned that rapid price hikes could pose risks if market liquidity fails to keep pace. Echoing this, property analyst Le Quoc Kien said title deed issuance unlocks liquidity for projects previously stalled by legal issues.
Apartments undervalued due to paperwork problems, once cleared, surge to match or exceed nearby projects with good locations, he said. “Moderate price increases are reasonable, but sharp spikes in a short time could signal a localized bubble.”
A sales director at a HCMC brokerage described the price surges as an inevitable outcome after years of legal bottlenecks, which left tens of thousands of apartments without pink books. “As hurdles are cleared, buyers react quickly to positive news, causing sharp secondary price fluctuations despite cautious overall liquidity.”
But he urged buyers to exercise caution, saying not all projects’ real value aligns with legal progress.
