Ho Quoc Minh, who recently moved from Khanh Hoa Province, has spent two weeks viewing more than 10 houses in the former districts of 12, Go Vap, and Thu Duc City, but could not finalise any deal within his budget of around VND 5 billion (USD 196,000). Most options were small, located in narrow alleys or areas prone to flooding.
Similarly, Nguyen Thi Hoa, an office worker with the same budget, said that houses in central former districts, such as Binh Thanh or Go Vap, are either too old, poorly planned, or overpriced. She is also considering an apartment, but noted prices are already high.
A property firm representative said that buyers with a budget of USD 196,000 often face lengthy searches, especially if they require car access or prefer central locations. “Out-of-town buyers used to open spaces may struggle more. They should survey multiple areas, understand pricing and check the legal status carefully,” the representative advised.
According to CBRE Vietnam, landed houses averaged VND 160-300 million (approximately USD 6,270-11,760) per square metre in the second quarter, up 9 per cent year-on-year. Apartments ranged from VND 82-220 million (approximately USD 3,210-8,620), up 29 per cent.
Doan Quoc Duyet, director of Tin Thanh Real Estate, estimated that apartment prices have risen 15-30 per cent compared to 2024. Central wards of former districts 1, 3, 7, Binh Thanh and Thu Duc City now range from VND 80-200 million (approximately USD 3,130-7,820) per square metre, sometimes higher.
He cited limited supply due to legal bottlenecks, scarce land, and rising input costs, with steel, cement, sand, and stone up 15-20 per cent since 2023. Stricter requirements for fire safety, the environment, and infrastructure have also added 20-30 per cent to project costs.
Other drivers include the focus on luxury projects, new infrastructure such as Metro Line 1, the Thu Thiem 2 Bridge, and Ring Road 3, as well as capital inflows from Hanoi and foreign investors from South Korea and Singapore. Even old apartments rose 10-15 per cent after the revised Land Law took effect.
Duyet forecast central apartment prices could rise another 10-15 per cent by the end of 2025, making ownership increasingly difficult for middle-income buyers with budgets around USD 200,000.
