Unveiling the Secrets Behind $100 Million per Square Meter Condo Prices

Skyrocketing Prices

According to CBRE Vietnam’s Q2/2025 real estate market report, the primary selling price of apartments in Ho Chi Minh City (HCMC) reached 82 million VND per square meter of net area, a nearly 7% increase from the previous quarter and 29% from the previous year. Prices in Q2 were adjusted up by 10-13% compared to the earlier period.

In Q2, apartment prices in former Binh Duong rose by 11%, Dong Nai by 10%, and former Long An by 19% year-on-year. This surge was primarily driven by newly launched high-end projects, elevating the overall market level.

Data from Nha Tot platform also indicates that over the past six months, apartment prices in former Long An (Tay Ninh) increased by nearly 19%, and in former Binh Duong by 11%, while Dong Nai, with fewer new projects, saw a slight fluctuation of around 2%.

According to Batdongsan.com.vn, secondary apartment prices in HCMC have surged by nearly 33% compared to the same period in 2024. The most significant price increases were recorded for high-end projects in the eastern part of HCMC, particularly along Hanoi Highway and in the Thu Thiem area. Consequently, secondary apartment prices around Hanoi Highway rose by 34%, in Thu Thiem by 33%, in former District 7 by 28%, and in former District 9 by 16%.

The Ministry of Construction’s Q2 real estate market report also highlights that apartment prices in HCMC during Q2 averaged 89 million VND per square meter, a 36% increase from the same period last year—the highest in nearly a decade. Secondary prices rose significantly in areas with developed infrastructure or completed projects.

Several projects recorded high average secondary price increases (7-10%) in the quarter, including Gateway Thao Dien (approximately 123 million VND/m²), Thao Dien Green (163 million VND/m²), Urban Green (around 72 million VND/m²), CityLand Park Hills (from 65 million VND/m²), Lavida Plus (67 million VND/m²), Vista Verde (110 million VND/m²), and HaDo Centrosa Garden (130 million VND/m²).

The Vietnam Real Estate Brokerage Association (VARS) reports that the average primary apartment selling price in Hanoi reached 79 million VND/m², a 6% increase from the previous quarter and a 33% surge from the same period last year—the highest in the past three years. Many new projects launched in the first half of this year, from central to suburban Hanoi, recorded prices ranging from 80 to 170 million VND/m².

Assessing the Q2/2025 real estate market, VARS notes a significant increase in projects priced above 80 million VND/m², with high-end and luxury apartments accounting for 62% of the total supply, an increase of over 10,000 units compared to the same period in 2024. The proportion of high-end and luxury apartments rose by 16% year-on-year.

Notably, the market primarily launched high-end and luxury apartments, with virtually no commercial apartments priced below 60 million VND/m² in major cities like Hanoi, Da Nang, and HCMC—areas with the highest demand. In Q2/2025, Hanoi continued to lead the country in the growth rate of high-end apartment prices. Compared to the base period, average selling prices increased by nearly 88% in Hanoi, almost 70% in Da Nang, and over 48% in HCMC.

Soaring Input Costs

Speaking with Tien Phong newspaper, Mr. Vo Hong Thang, Deputy General Director of DKRA Consulting, cited multiple reasons for the high apartment prices, ranging from 70 to 100 million VND/m². These include high borrowing costs, soft costs, lengthy legal procedures, land use fees, and rising construction material costs.

Another significant factor is that since 2022, many developers have implemented debt moratorium policies, driving up apartment prices. Mr. Thang illustrates this with an example: a project that should have sold for 80 million VND/m² ended up priced at 90 million VND/m² due to the inclusion of the debt moratorium cost. This price became a reference for nearby developers and was used by state agencies to calculate land use fees, inadvertently pushing apartment prices higher.

The leadership of the Vietnam Real Estate Brokerage Association (VARS) observes that current prices are not only beyond the reach of low-income groups but also out of reach for many in the upper-middle-income bracket. Many young buyers, despite earning 40-50 million VND/month, are hesitant to purchase homes without financial support from their families.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), notes that since 2021, former HCMC has had no affordable commercial housing priced below 30 million VND/m² and a severe shortage of social housing.

Conversely, high-end housing has consistently dominated the market from 2020 to 2023, accounting for approximately 70% of newly launched properties annually. Alarmingly, since 2024 and the first half of this year, all projects raising capital in the market have been high-end, with no affordable commercial or mid-range housing. This trend has led to an unsustainable development in HCMC’s housing market.

“Prices have risen continuously over the years, with high-end apartments now reaching 90 million VND/m², averaging around 9.7 billion VND per unit. These are primary prices upon project approval, not selling prices, and are beyond the financial means of most middle- and low-income earners,” Mr. Chau stated.