Why Are Ho Chi Minh City’s Eastern District Apartments So Popular Despite Rising Prices?

Scarce Supply of Luxury Apartments

According to One Housing, from 2021 to 2023, Ho Chi Minh City’s apartment prices maintained an average increase of 12%, with the East region fluctuating between 13-15%. However, in 2024, both the city as a whole and the East region in particular recorded a sudden surge in prices.

Specifically, in 2024, the primary selling price of apartments in Ho Chi Minh City averaged VND 84 million per square meter, a 15% increase compared to the same period in 2023. In Thu Duc City (formerly Thu Duc district) – the area with the highest price increase in the region – this figure stood at VND 100 million per square meter, marking an 18.3% rise.

The scarcity of supply, according to experts, is the main reason for the double-digit growth in primary selling prices of apartments in the East of Ho Chi Minh City. Savills’ Q1/2025 real estate market report revealed that only about 800 new apartments were offered for sale, a 70% decrease from the previous quarter.

In the context of limited supply, the absorption rate of new projects in the East remained at 100% despite significant price increases, especially with several projects in the former District 2 recording absorption rates of over 146%, as per One Housing.

The dwindling land bank in the central areas of Ho Chi Minh City, coupled with the rising demand for high-quality living spaces and integrated amenities, has led to a noticeable shift towards areas with robust infrastructure development, such as the East. As the city’s new development hub, Thu Duc is seen as leading the real estate trends of the entire city.

Infrastructure Breakthrough – Strong Appeal of the East’s Real Estate Market

Apartment products in the East of Ho Chi Minh City attract buyers due to their increasingly convenient transportation connections, offering long-term price appreciation potential. Thu Duc holds a significant advantage as the gateway connecting the city center to the provinces of the Southern Key Economic Region, with a series of key infrastructure projects such as Metro Line 1, An Phu Intersection, Ho Chi Minh City – Long Thanh – Dau Giay Highway, Ring Road 3, and Long Thanh International Airport being expedited.

Notably, in the second quarter of 2025, Lien Phuong Street – one of Thu Duc’s vital transportation arteries – is expected to open to traffic. The street connects directly to The Global City township, and upon completion, it is anticipated to facilitate seamless travel from the An Phu and Thao Dien wards to the township and the wards of Phuoc Long B, Phu Huu, Long Truong, and Truong Thanh, and vice versa.

According to data from Savills Vietnam’s research department, the East is the dominant source of housing supply in Ho Chi Minh City’s apartment market, and its well-connected infrastructure will attract the attention of both investors and individual homebuyers.

Quality Projects with Solid Legal Framework Become the “Focus”

The potential for price appreciation due to infrastructure connectivity and limited supply has heightened interest in projects by reputable real estate developers. Notably, projects along Mai Chi Tho Street by foreign investors are expected to introduce over 2,000 apartments to the market.

One of the standout names is the soon-to-be-launched high-rise subdivision at the heart of The Global City, the city’s new central area, developed by Masterise Homes. This subdivision has garnered special attention since Masterise Homes unveiled its first images and announced its name as LUMIÈRE MIDTOWN, carrying the LUMIÈRE brand that has established the company’s reputation as an international-standard luxury real estate developer.

Occupying a prime position on the front lines of Lien Phuong Street, LUMIÈRE MIDTOWN boasts direct access to a range of amenities already in place, including the largest musical canal in Southeast Asia, the Love Bay and Moon Bridge, and the City Park sports and entertainment complex. Notably, LUMIÈRE MIDTOWN sits opposite a massive 123,000-square-meter commercial center, which is set to be one of the largest in Ho Chi Minh City and Vietnam.

The strategic location advantage alongside Lien Phuong Street not only enhances connectivity for residents but also unlocks commercial potential, rental opportunities, and long-term investment value. A telling example is the 75% price increase of LUMIÈRE Riverside in Thao Dien since its launch, particularly after the announcement of the Metro Line 1 becoming operational.

With its advantageous location, international quality, robust legal framework, and comprehensive amenities, the luxury apartments at LUMIÈRE MIDTOWN are expected to meet the demands of discerning homebuyers and offer sustainable value growth for investors upon its official launch in the near future.