The Rise of Commercial Townhouses in Ho Chi Minh City: Unveiling the Reasons Behind the Steady Price Increase

Why Are Commercial Townhouses in Ho Chi Minh City Appreciating in Value?

A scarcity of new supply and a quietly growing demand have led to continuous price increases for commercial townhouses near Ho Chi Minh City’s center.

In Ho Chi Minh City, aside from a handful of commercial townhouse rows in the East (located within a large-scale urban area), there is a dearth of projects in the West. Existing or under-construction projects in desirable areas have seen significant price appreciation.

For instance, in the Western region, the Sholi project offers a rare opportunity to invest in 90 commercial townhouses on over 1.4 hectares of land on An Duong Vuong Street, An Lac Ward, Binh Tan District. When compared to the previous year, the prices of these units have increased by VND 1-1.5 billion each.

In Go Vap district, the CityLand mixed-use townhouse development is another scarce offering that has been on the market for quite some time. The secondary market prices have now risen to 2.5 times their initial launch prices. Despite the price increase, very few units are available due to the lack of developable land for this type of commercial townhouse in the area.

The ability to reside and operate a business or office within the same premises is a significant advantage of commercial townhouses, attracting buyers with substantial financial means. Projects that are well-designed and located near major roads in bustling residential areas or vibrant commercial streets with easy access to the city center are particularly appealing to prospective buyers.

In recent times, commercial townhouse rows near the city center have witnessed improved liquidity, thanks to a buyer profile comprising entrepreneurs who wish to reside and operate their businesses or offices from the same location. Additionally, affluent merchants seeking to upgrade their living standards while maintaining their commercial activities find this arrangement appealing. This type of property offers a solution for high-end living with the flexibility to conduct business, catering to buyers with substantial financial resources.

Mr. N.V.N, a specialist in commercial townhouse sales, attributes the consistent price growth not only to the commercial value but also to the enjoyment value of these properties. Nowadays, integrated living—combining residence, business, and access to premium amenities—is a priority for homebuyers. This type of commercial townhouse, conveniently located near bustling streets, is particularly well-suited for young, successful individuals with refined tastes and high standards of living.

The allure of commercial townhouses lies in their convenient and personalized living environment, where amenities such as fashion boutiques, cafes, restaurants, and entertainment venues are just a stone’s throw away. Given the scarcity of new supply and the growing demand, Mr. N believes that the value of these properties will continue to rise in the future.

Abundant Potential Remains

According to market research firms, Ho Chi Minh City’s land supply continues to decline, resulting in rapid price increases. Houses on land account for 70% of the market, with properties priced at VND 30 billion and above. Consequently, high-quality projects located near the city center but offering more competitive pricing compared to Districts 1 and 3 are expected to witness significant price appreciation.

Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn for the Southern region, recently shared his insights: “Assets located on bustling streets with developing infrastructure but not yet experiencing overheated price growth present a golden opportunity for profitable investments. Choosing the right location can provide a steady cash flow while also benefiting from asset value appreciation over time.” Mr. Tuan emphasized the importance of investing in projects with stable rental growth over time.

Savills Vietnam weighed in on the potential of commercial townhouses, stating that in rapidly growing urban areas with rising populations, stable income growth, and expanding consumer demand, the prospects for commercial townhouses remain promising.

However, to ensure sustainable investment returns, buyers should consider core factors such as location, legal aspects, developer reputation, and project design. It is crucial to avoid overpriced properties that fall short of expectations, are difficult to rent out, or fail to deliver the anticipated price appreciation.

Regarding location, in addition to being situated on major roads with easy accessibility, commercial townhouses should be in areas with high population density, stable traffic flow, and genuine consumer potential. Proximity to public facilities, schools, and office buildings provides a distinct advantage in attracting tenants.

Moreover, projects developed by reputable companies or involving experienced design, construction, and supervision teams increase the likelihood of market success.

“Commercial townhouses remain a promising segment, especially in large cities with growing populations and purchasing power. However, as the market undergoes significant polarization, the key to securing profits and liquidity lies in selecting suitable products in the right locations, ensuring legal compliance, and optimizing design,” emphasized Savills.