Affordable Housing Options for Young Adults: A Silver Lining Amidst Soaring Condo Prices

The launch, signing, and implementation of affordable apartment projects in the Southern market were vibrant in Q3 2025, per observations. This is encouraging news for young individuals and families with limited incomes but a high demand for housing.

Recently, TV Holdings introduced the Fresia Riverside project and partnered with Altara Hospitality Group for operations. The project comprises 1,153 apartments located on Bui Huu Nghia Street, Bien Hoa, Dong Nai, and is exclusively marketed and distributed by EximRS, with prices starting from VND 1.79 billion per two-bedroom unit—a rare soft price in the Southern market in Q3 2025.

In early August 2025, Nam Long and Japanese giant Nishi Nippon Railroad officially inaugurated the Solaria Rise apartment model in the 355-ha Waterpoint Township, Ben Luc, Long An (now Tay Ninh), marking the release of over 700 affordable apartments to the market. The project covers 3.1 hectares and consists of four towers ranging from 8 to 17 stories.

In Binh Duong (now Ho Chi Minh City), Phu Dong Group officially launched nearly 800 apartments in the Phu Dong SkyOne project in Di An, Ho Chi Minh City. The selling price starts at approximately VND 38 million per square meter, which is VND 4-5 million higher than the expected price but still reasonable compared to the context of high apartment prices in Ho Chi Minh City. According to the Group, the price adjustment is due to the increased land use cost. To compensate, the project offers a comfortable payment policy, with a monthly payment of only VND 4.5 million and a fixed interest rate of 5% for five years.

In the same area, the Japanese joint venture Cosmos Initia, TT Capital, and Koterasu Group are preparing to launch the next batch of TT AVIO apartments, priced below VND 40 million per square meter. This project has performed well in previous launches. The price has increased by about 10% compared to the beginning of the year.

The Aspira apartment project, developed by Saigon High Rise Investment Joint Stock Company, is also set to debut in August 2025, with prices starting from VND 33.3 million per square meter. There are small apartments sized at just VND 1.4 billion per unit—a notable price in the Southern apartment market during this period.

The Felix by C-Holdings and Bcons Binh An Dong Tay by Bcons are also among the “soft price” apartment projects from VND 2 billion per unit that have attracted buyers’ attention recently.

Amidst Ho Chi Minh City’s (old) apartment prices continuing to “soar,” the appearance of apartment projects priced below VND 2 billion per unit in the city’s vicinity has attracted significant interest.

According to CBRE Vietnam’s Q2 2025 data, primary and secondary apartment prices in Ho Chi Minh City (old) continued to rise, reaching an average of VND 82 million per square meter, up 29% year-on-year. Meanwhile, secondary prices reached VND 53 million per square meter, up 13% year-on-year. This indicates that apartments sized 50-60m2 released to the market are priced from VND 4-6 billion per unit, exceeding the “bearable” threshold for many young individuals and families.

In reality, the supply of affordable housing has shown signs of recovery compared to the same period last year but remains a long-term challenge for the real estate market. In a recent analysis, Dr. Bui Van Dinh, Director of the Vietnam Institute of Real Estate Research, shared that developing affordable housing is a complex equation due to the high real estate prices. Therefore, developing affordable commercial housing requires government intervention. Controlling input factors will help ensure that commercial housing prices are reasonable.

Sharing the same view, Dr. Lawyer Doan Van Binh, Vice President of the Vietnam Real Estate Association (VNREA), emphasized that affordable housing is becoming scarce in most major economies worldwide due to low supply compared to demand. House prices and rents are rising rapidly, burdening middle-class families and young workers financially.

According to Dr. Binh, there are significant challenges to developing affordable commercial housing, including delayed project legal completion procedures, limited budgets, increased construction and material costs, and more, resulting in higher housing prices. Moreover, legal regulations are still problematic, and stringent standards, planning, and regulations increase housing prices by 40-50%.

Ms. Tong Thi Hanh, Director of the Department of Housing and Real Estate Market Management (Ministry of Construction), expressed that developing affordable housing requires government intervention. In the new planning proposal, the government has identified suitable areas for developing low-cost commercial housing. This demonstrates the government’s strategic vision and proactive approach in land fund creation and shaping affordable urban areas.

With state management tools such as planning and planning, Ms. Hanh believes that the government can tightly control planning, project progress, and especially selling prices. Controlling these input factors will help ensure that affordable commercial housing prices are reasonable and prevent opaque price hikes.

“The goal of this intervention is to control the entire real estate market, not just primary market price caps. The secondary market also needs attention and tight control,” emphasized the Director of the Department of Housing and Real Estate Market Management.