Why do old apartments in Ho Chi Minh City increase in price sharply?

(NLĐO) - The price of completed apartments, especially those with full ownership certificates, has increased sharply over the past year, with many apartments seeing a 10-20% increase.

According to a report by Savills Vietnam, the luxury apartment segment continued to lead the Ho Chi Minh City real estate market with 2,700 transactions in Q4 2024, a 43% increase quarter-on-quarter. Selling prices for luxury apartments above VND 80 million/m² surged, accounting for 76% of total transactions.

Conversely, affordable apartments (priced under 50 million VND/m²) accounted for only 18% of total sales, a sharp decrease compared to 2020 when this segment accounted for up to 50%.

According to Troy Griffiths, Deputy Managing Director of Savills Vietnam, in Q4 2024, due to persistently high apartment prices, homebuyers and investors are shifting their focus to neighboring provinces such as Binh Duong, Dong Nai, and Long An , where prices range from only 30-40 million VND/m², instead of continuing to search for new and used apartments in Ho Chi Minh City.

Secondary market apartment prices in Ho Chi Minh City have increased sharply over the past year.

Prices have skyrocketed.

According to a field survey by reporters from the Nguoi Lao Dong newspaper, over the past year, the price of completed apartments in Ho Chi Minh City has continuously increased, with some areas experiencing sharp increases of up to 25%, especially in apartment complexes with advantageous transportation, convenient infrastructure, and complete legal documentation. The scarcity of new supply has driven up the prices of older apartments, making the market vibrant but also putting pressure on homebuyers.

Ms. Le Thu, who bought an apartment at the Celesta project on Nguyen Huu Tho street (Nha Be district) more than a year ago for 3.9 billion VND, saw the price skyrocket to 4.5 billion VND by the time she received the keys in November 2020. According to Ms. Thu, this area has a very active buying and selling activity.

Meanwhile, Mr. Xuan (residing in Binh Thanh District) said that last year he sold his 3-bedroom apartment in Landmark 1 (Vinhomes Central Park) for 9.5 billion VND. Now, he hears that the price of that apartment has increased to 11.9 billion VND, an increase of about 25%, which makes him "heartbroken". In contrast, with the money he received from the sale, he bought another apartment on Nguyen Huu Canh Street (Binh Thanh District) at a lower price, which has now only increased in value by about 5%.

Not only are sellers regretting their missed opportunities, but many buyers are also disappointed because they didn't manage to finalize the deal in time. Ms. Thanh Quyen, a resident living in The Icon 56 apartment building (District 4), said that a year ago, the owner of the 50 m² apartment she was renting put up for sale at around 3.4 billion VND, but she hesitated to buy it. Currently, the price of this apartment has increased to 3.8-3.9 billion VND, equivalent to an increase of nearly 12%.

Rental prices also increased sharply.

Not only have apartment prices increased, but rental prices have also risen. Mr. Nguyen Duy, a resident of The Sun Avenue apartment complex (Thu Duc City), said that his 2-bedroom apartment, with an area of ​​70 m², was rented for 15 million VND/month last year. Currently, it has increased to 16.5-17 million VND/month, and the asking price has also increased from 4.1 billion VND to over 4.5 billion VND/apartment.

According to Mr. Tran Khanh Quang, General Director of Viet An Hoa Real Estate Company, the demand for apartments for residential purposes is increasing. In recent years, very few new projects have appeared, while prices are quite high. This has made projects that have already been handed over and have stable residents increasingly sought after, driving prices up rapidly.

Apartment projects in convenient locations or with numerous amenities typically see an average price increase of 5-10% per year. In particular, apartments with advantages such as proximity to metro lines, major road expansions, or large shopping malls are valued higher due to strong demand from both buyers looking for a place to live and investors.

Source: https://nld.com.vn/vi-sao-chung-cu-cu-o-tp-hcm-tang-gia-manh-19625021209054631.htm