This article contributed by Dustin Trung Nguyen, Head IQI Vietnam
Residential:
HCMC apartment price climbs to new peak of nearly $4,700 per square meter.
Apartment prices in Ho Chi Minh City rose to an unprecedented VND120 million (US$4,691) per square meter on average in the first quarter, marking a 47% increase year-on-year.
But the record price was achieved because a majority of new launches in the last three months were in the high-end and luxury segments priced at above VND100 million (US$3,870) per square meter
The eastern and central districts of HCMC, where the high-end projects are largely concentrated, continue to lead the charge in new supply, accounting for some 53% of over 2,390 units launched in the first quarter.
The south and west, which still offer some mid-range projects (priced at around VND60 million per square meter), represent 19% and 15% of the supply.
Knight Frank’s data shows that the average apartment price in HCMC in the first quarter reached nearly VND92 million per square meter, a 12% rise from the same period last year, with transaction volumes dropping by 47% compared to late 2024.
Cushman & Wakefield CEO Trang expected HCMC to add around 9,500 new apartments in the second quarter, predominantly in the high-end segment with an average selling price of VND120 million per square meter.
If the prices continue to rise, demand is expected to gradually shift toward the city’s suburban areas and neighboring cities, where prices remain affordable.
Hanoi apartment price growth in the first quarter decelerated to the slowest pace in nearly two years as sellers lower their rates to attract buyers.
Prices on the primary market – where developers sell directly to buyers – averaged VND75 million (US$2,915) per square meter in the first three months, a 3% growth from the last quarter of 2024, this was the slowest quarterly growth since the second quarter of 2023.
The secondary market – where buyers sell to other buyers – also saw slower price growth at 3% to VND50 million.
In most projects, prices were stagnant, except for those in prime areas where leasing potential was high.
Data from research firm Cushman & Wakefield echoed these findings, reporting declining demand for Hanoi’s apartment sector.
The market recorded sales of over 4,300 units, a 53% drop from the previous three-month period.
Absorption rates weakened as buyer confidence waned, with many prospective buyers adopting a cautious stance amid ongoing economic uncertainties.
Most of the new units, 77%, were in the high-end and luxury segments, and few were affordable.
Property listing platform Batdongsan has seen apartment prices in the capital going flat since the end of last year.
Commercial:
Many shopping malls in Hanoi, most of them once thriving hubs of entertainment and retail, are now largely vacant and attract few customers.
Meanwile, HCMC office rents at 5-year high driven by rising demand
Premium office rents in HCMC reached a five-year high of US$67 per square meter on average last year after rising by 2.2% from 2023.
Across all grades (affordable, mid-range and premium), the average rent rose by 1.6% to $36, according to property consultancy JLL Vietnam.
Data from market researcher Knight Frank confirms the rising trend, showing prime office rents grew by 3% last year to $61.
Occupancy rates in new office buildings were 88-90%, it said.
Another property consultancy, Savills, said the HCMC office market has seen a steady increase in rentals over the past decade.
Last year, across all grades, they increased by 2-3% but demand remained strong as indicated by occupancy rates of above 89%.
Trang Le, CEO of JLL Vietnam, said recovery in demand from both domestic and international businesses has been a key driver, allowing premium office landlords to confidently hike prices.
Last year the vacancy rate dropped to just 6% at premium buildings and 12% across the market, she added.
Japanese companies have been active in securing office space, accounting for 19% of the more than 75 companies that signed new lease agreements in HCMC, JLL data shows.
Vietnamese businesses were in second place, with South Korean and American firms close behind.
The information technology and communications sector led the demand for office space (accounting for 30% of the total absorbed area), followed by the finance and banking, retail and pharmaceutical industries.
