Supply of apartments improves, yet prices continue to rise. (Illustrative image: Int).
According to Savills Ho Chi Minh City’s real estate market spotlight report, Vietnam’s economy recorded positive growth in the first nine months of 2025, laying a solid foundation for the real estate market.
GDP growth reached 7.9%, the second-highest nine-month increase in the 2011–2025 period. Total registered FDI capital hit $28.5 billion (up 15% year-on-year), with realized FDI capital reaching $18.8 billion (up 8% year-on-year). Real estate accounted for 21% of newly registered FDI capital.
Total retail sales and consumer service revenue in Ho Chi Minh City reached 1.4 trillion VND in 9M/2025, up 15.3% year-on-year. Nationwide, total retail sales and services reached 5.2 trillion VND.
These positive macroeconomic indicators supported buying and investment demand, though the focus of the housing market remains on supply and pricing challenges.
Apartment Prices Continue Upward Trend
Savills HCMC’s apartment report noted a cautious return of new supply and improved absorption rates, but affordability remains the biggest challenge.
In Q3/2025, primary apartment supply in HCMC reached 5,200 units, down quarterly but up sharply year-on-year. New supply was 2,000 units, from one new project and five subsequent phases.
Developers remain focused on the mid-range segment. Supply is concentrated in the eastern and western parts of the city. Despite improvements, current supply still falls short of actual demand.
Transactions rose to 2,700 units in the quarter, with an absorption rate of 51%, driven by stable real demand and investment.
Both primary and secondary apartment markets recorded strong price increases over the past year.
Despite a slight market adjustment in Q3/2025 due to significant incentives at large-scale projects to clear delivered inventory, the overall market trend remains growth-oriented.
The Southern apartment market is increasingly polarized: Apartments under 3 billion VND account for only 9% of transactions in the city. In contrast, in neighboring provinces, apartments under 3 billion VND make up over 60% of transactions. Notably, Binh Duong accounts for 90% of affordable apartment transactions in the region.
Looking ahead, new supply in HCMC is expected to remain limited in the short term, while prices are forecast to rise. Affordability pressures will continue to shift homebuyers to neighboring satellite markets.
Villas/Townhouses Show Positive Signs
Savills HCMC’s report also highlights that the low-rise housing segment continues to face limited supply, with high-priced inventory dominating. However, liquidity showed positive signs in Q3/2025.
New supply increased quarterly but remains limited, concentrated in the western and southern parts of the city.
High-priced supply over 30 billion VND continues to dominate the market. Primary supply increased slightly quarterly but decreased slightly year-on-year. Quarterly performance improved, with absorption rates rising to 24%.
This absorption momentum was driven by reasonably priced new supply entering the market, addressing existing supply-demand imbalances. New supply accounted for 50% of total transactions, with an absorption rate of 89%.
Looking ahead, primary prices decreased quarterly but increased year-on-year, mainly due to new projects and re-launches in suburban areas.
Key infrastructure projects are accelerating and expected to complete in 2026, including Ring Road 3, Ben Luc – Long Thanh Expressway, Long Thanh Airport, and Bien Hoa – Vung Tau Expressway, serving as market drivers.
Savills experts anticipate the low-rise housing segment will expand to suburban areas and neighboring provinces along key infrastructure routes. After a long period of supply scarcity, the landed housing market in suburban areas is reviving with large-scale urban projects, particularly in Can Gio.
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