Stunning Home Prices: Projects Surge by 100 Million to 500 Million VND/m² in Just a Few Years

At the Ho Chi Minh City Business Association (HUBA) economic forecast for 2026 and investment opportunities, Mr. Phan Đình Tuệ, Vice Chairman of HUBA and a board member of Sacombank, expressed astonishment at the surge in housing and apartment prices.

500 million VND/m²: Out of Reach

According to Mr. Phan Đình Tuệ, there’s a debate that the real estate market is flawed due to inadequate and diverse supply. However, he argues this isn’t the case, pointing to luxury properties—primarily apartments—where prices have skyrocketed despite perceived oversupply.

“Personally, I consider myself a failed investor. In Ho Chi Minh City, apartments once launched at 100 million VND/m² seemed too expensive, so I hesitated. Now, just a few years later, prices have hit 500 million VND/m², and they’re still unattainable,” Mr. Tuệ remarked.

He cited projects near Thu Thiem Bridge, Ba Son, and Nguyen Huu Canh Street, where prices now rival prime central locations in the city.

Mr. Lê Hữu Nghĩa, Vice Chairman of the Ho Chi Minh City Real Estate Association (HoREA) and CEO of Le Thanh Corporation, noted that high property prices were predicted 5–6 years ago. The key issue, he said, is the lack of supply and high prices, with few projects approved in recent years, leading to a severe shortage.

“Developers initially plan to sell at 40 million VND/m², but seeing neighboring projects succeed at higher prices, they raise theirs to 60 million VND/m². When those sell out quickly, they push it to 100 million VND/m², and it still sells well,” he explained. “With limited supply and high demand, prices keep climbing.”

Many projects cater to investors rather than homebuyers, focusing on mid- to high-end segments. Affordable housing remains scarce, as developers avoid it due to lower profitability.

Mr. Nghĩa emphasized that policies, particularly high land-use fees, are major drivers of high property prices. Delays in land valuation and additional late fees further inflate costs, which are passed on to buyers.

Coefficient K Drives Up Apartment Prices

In a submission to the National Assembly’s draft resolution on land law implementation, HoREA highlighted how the land price adjustment coefficient (K) inflates property prices.

Mr. Lê Hoàng Châu, Chairman of HoREA, cited a 1-hectare plot on Nguyen Xien Street (former Thu Duc District) with a base price of 56.6 million VND/m² and a K coefficient of 1.4, resulting in a land price of 80 million VND/m². Using the surplus method, however, the price should be 35 million VND/m², forcing developers to sell apartments at over 100 million VND/m² to avoid losses.

Similarly, a 1-hectare plot on Dang Cong Binh Street (former Hoc Mon District) has a base price of 18.5 million VND/m² and a K coefficient of 2, yielding a land price of 37 million VND/m²—six times higher than the surplus method’s 9 million VND/m². This forces developers to price apartments at 70 million VND/m² for profitability.

HoREA argues that the K coefficient, designed for small-scale projects, is unsuitable for large commercial or high-rise residential projects. They propose adjusting the coefficient based on project scale and location to better reflect market realities and prevent excessive price increases.