Compared to investing in the affordable housing segment, investing in the high-end, luxury, and super luxury segments brings greater profits to investors - Photo: NAM TRAN
The market is full of high-end, luxury apartments
Data from many real estate market research companies shows that in the first 6 months of this year, the Hanoi and Ho Chi Minh City markets have tended to increase supply, but most of the new supply is focused on the mid-range, high-end, luxury and super luxury segments.
The market has almost no supply of affordable housing, suitable for the home buying needs of the majority of people.
Batdongsan.com.vn's market report shows that the average selling price of apartments in Hanoi in the first 6 months of 2025 is around 70 million VND/ m2 , while in the old Ho Chi Minh City area it is around 63 million VND/ m2 , while in the new Ho Chi Minh City area it is around 56 million VND/ m2 .
In which, the selling price of apartments in some projects in Ho Chi Minh City area such as Citi Grand is 60 - 70 million VND/ m2 , The Privé is 100 - 110 million VND/ m2 , Eaton Park is 150 - 160 million VND/ m2 , Happy One Sora is 50 - 55 million VND/ m2 .
In Hanoi, apartment prices in some central districts in the second quarter skyrocketed compared to the beginning of 2023. Specifically, apartment prices in Ba Dinh area are about 112 million VND/ m2 , up 58%; Tay Ho is about 97 million VND/ m2 , up 78%; Dong Da is 80 million VND/ m2 , up 91%; Bac Tu Liem is 76 million VND/ m2 , up 85%; Thanh Xuan is 79 million VND/ m2 , up 85%.
New supply in some projects in Hanoi recorded all high-end, luxury and super luxury apartments. Of which, Noble Crystal from 180 - 210 million VND/ m2 , Sun Feliza Suites 160 - 180 million VND/ m2 , Imperia Signature Co Loa 90 - 100 million VND/ m2 , Masteri Grand Avenue 95 - 120 million VND/ m2 .
According to Savills Vietnam, the supply of apartments in the two largest cities in the country has not met actual demand in recent times. In Ho Chi Minh City, the shortage of housing supply has lasted for the past 5 years. The city set a target of developing about 235,000 houses in the period of 2021 - 2025 but only achieved 24%, a shortage of about 179,000 apartments.
In Hanoi, in the period of 2021-2025, the supply of apartments has not met the actual demand. There are about 151,000 newly formed households, but the city can only provide about 102,000 new apartments and low-rise houses, leading to a shortage of about 49,000 apartments.
What are the solutions to increase affordable housing supply?
According to Dr. Doan Van Binh - Vice President of the Vietnam Real Estate Association, a series of major challenges are hindering the development of affordable commercial housing. First is the serious shortage of supply due to housing projects being slow to complete legal procedures, and limited budgets causing a prolonged supply-demand crisis.
Construction labor costs increased by 15%, material prices increased by 15%, causing housing prices to increase, strict standards, norms, planning, and regulations are increasing project costs by 40 - 50%.
Another challenge, according to Mr. Binh, is that the housing market is increasingly financialized, with the participation of investment funds such as REITs. They buy up a large number of rental properties, pushing up rents and gradually narrowing the opportunity to own social housing. In addition, the current social housing fund is still not large enough and lacks sustainability. For couples with average incomes, accessing an affordable apartment is becoming increasingly difficult.
To increase the supply of affordable housing, Ms. Tong Thi Hanh - Director of the Department of Housing and Real Estate Market Management, Ministry of Construction - said that the Ministry of Construction has advised the Government to submit to the National Assembly Resolution 201 on social housing development, creating an important legal foundation for the implementation of housing policies for low-income people. This includes the establishment of a National Housing Fund, with the aim of focusing on developing rental housing, helping those who need housing but do not have stable accommodation.
Ms. Hanh also frankly admitted that the development of social housing and social housing for rent needs time to create enough supply to meet the housing needs of low-income people today. Therefore, affordable commercial housing is a segment that needs attention and parallel development in the current context.
Sharing the same view, Prof. Dr. Hoang Van Cuong, member of the National Assembly's Economic and Financial Committee, said that it is necessary to emphasize and clarify the criteria for affordable housing from two perspectives: One is to meet the housing and consumption needs of the people, and the other is to meet the actual payment ability of the buyer.
To clarify the reasons why Vietnam lacks affordable commercial housing and to recommend development solutions to the Government in the coming years, the Vietnam Real Estate Association is conducting a scientific research project: Development of affordable commercial housing in Vietnam, current situation and proposed policies and laws.
Source: https://tuoitre.vn/nha-o-thuong-mai-vua-tui-tien-sao-mai-khan-hiem-20250725164144496.htm
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