Factors Fueling the Unrelenting Rise in Condominium Prices

According to Mrs. Duong Thuy Dung, Executive Director of CBRE Vietnam, the enhanced quality of products has intensified competition among developers.

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Why Real Estate Prices Remain High

Why Real Estate Prices Are Resistant to Decline

According to CBRE Vietnam, the primary apartment prices in Ho Chi Minh City reached VND 82 million/m² in Q2/2025, a 29% increase compared to the same period last year. In Hanoi, the average price hit VND 79 million/m², up 33% from Q2/2024. These prices are expected to rise further, even with increased supply and the expansion of HCMC’s administrative boundaries.

The reasons for rising real estate prices have been widely discussed. Beyond infrastructure investment and rising input costs, high actual demand and improved product quality have strengthened buyer confidence, leading to acceptance of higher prices.

Ms. Duong Thuy Dung, Managing Director of CBRE Vietnam, notes that enhanced product quality has intensified competition among developers. Post-Covid-19, buyers prioritize internal amenities, security, schools, and professional management. This group is willing to pay a premium for clear legal frameworks and standardized quality.

Thus, projects with well-developed amenities see significant value increases. Price hikes in these projects depend more on internal amenities than external market fluctuations.

Improved product quality drives competition among developers. Illustrative image

HCMC real estate projects now fiercely compete on quality, especially post-administrative expansion. For instance, An Gia Group (AGG) recently launched the final 700 units of The Gio Riverside and partnered with Pathway Tuyet Duc School to build an elementary and middle school in Dong Hoa Ward, serving residents.

The 7,000m² school features a basement, ground floor, and four stories, designed as an open, modern space integrating learning, play, and nature-focused experiences under the “Happy School” model. The project also offers 68 premium amenities, including infinity pools, a sky bar, pool bar, and gym, enhancing its competitive edge in HCMC’s market.

Similarly, projects in HCMC’s Eastern and Western districts invest heavily in amenities like schools, hospitals, and convenience stores to meet real demand and improve liquidity.

At the 355ha Waterpoint urban area, Nam Long introduced amenities such as the EMASI Plus International Bilingual Boarding School, Saigon Waterpoint Polyclinic, and SanHa FoodStore Plus, attracting buyer interest.

At TT AVIO in Di An Ward, HCMC, a Japanese joint venture developed 89 premium amenities, including rare features for mid-range apartments. This project has seen strong absorption rates across its phases.

Experts note that improved product quality boosts liquidity competition and buyer confidence, justifying higher prices. This trend aligns with increased investment in project amenities by developers.

According to Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, HCMC’s real estate prices rise steadily due to genuine demand and sustainable investment. High urbanization, skilled labor migration, rising middle-class incomes, and household separation drive housing demand, creating new price benchmarks.

Year-End Real Estate Outlook

Over the past nine months, real estate has outperformed other investment channels. While gold remains volatile, stocks are unstable despite market upgrades, and deposits offer low interest rates, real estate remains a top choice.

Vo Huynh Tuan Kiet, Residential Director at CBRE Vietnam, observes a shift in buyer behavior. Previously, investments were driven by price appreciation expectations; now, buyers focus on tangible value. Only projects with clear legal status and complete amenities are easily traded. Long-term investors gain an advantage, while short-term speculation loses effectiveness.

Real estate remains a highly valued investment. Illustrative image

At a recent seminar, Vo Hong Thang, Deputy General Director of DKRA Consulting, noted HCMC and its surrounding areas saw positive recovery signs in the first eight months of 2025. Over 28,000 apartments were launched, up 58% year-on-year, with absorption exceeding 20,000 units, triple that of 2024.

Demand has expanded beyond HCMC to neighboring provinces. Former Long An Province led with 40% of supply and 67% of townhouses and villas absorbed. Former Binh Duong Province surpassed HCMC in apartment supply and absorption, with 45.5% and 46.7% market shares, respectively.

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