Brian Jeffrey
During a special oversight session at the Ho Chi Minh City People’s Committee, Deputy Director Huynh Thanh Khiet reported on the growth in the real estate market fueled by economic development between 2015 and 2019, attracting both local and international investors.
The market witnessed a shortage of affordable housing due to a boom in real estate projects, leading to a rise in property prices. The COVID-19 pandemic heavily impacted the real estate sector from 2020 to 2022, with signs of recovery appearing by the end of 2023.
The contribution of real estate activities to Ho Chi Minh City’s Gross Regional Domestic Product (GRDP) has been on a decline, accounting for 4.73% in 2015, dropping to 4.27% in 2019, and a mere 3.56% in 2023.
Deputy Director Khiet highlighted that apartment prices surged by 15-20% annually between 2015 and 2023.
Affordable apartment prices increased from 25-35 million VND/m² in 2015 to 40-60 million VND/m² in 2023. Mid-range apartments rose from 35-50 million VND/m² to 50-70 million VND/m², while luxury apartments saw a significant jump from 50 million VND/m² to 70-100 million VND/m².
By 2023, apartment prices in central Ho Chi Minh City areas varied from 80-200 million VND/m², while suburban areas ranged from 30-60 million VND/m².
Similarly, land plot prices in the city surged from 50-150 million VND/m² in 2015 to 100-300 million VND/m² in 2023.
Compared to apartments, townhouse prices saw a lower increase of 10-15% annually from 2015 to 2023.
Khiet noted a persistent scarcity in housing supply in Ho Chi Minh City, failing to meet the population’s demands, with an additional 200,000 people annually in need of housing. Rising prices, particularly in mid-range and luxury segments, pose challenges for low-income individuals and workers in securing housing.
