The residential real estate market in Ho Chi Minh City can be classified into 4 distinct housing segments each with its own defining characteristics. On one end exists the “affordable segment” targeted at low-income earners. Followed by the sandwiched “mid-end segment” that is affordable by Vietnam’s growing middle-class. Followed by the highly popular “premium segment” of housing. And at the upper end of Ho Chi Minh City’s housing segment spectrum exist the “luxury segment” of housing. More noticeably in recent times, a 5th class of apartments has emerged, that of the “ultra-luxury segment” catered only to the top tier of society.
Mass Market Housing Segments
New housing supply is generally in the mid-end segment as HCMC faces a severe shortage of affordable housing. The affordable segment for apartments is any product priced below USD 1,200 per square meter. While the mid-end segment is any products priced from USD 1,200 to USD 3,000 per square meter.
Premium Housing Segments
Private developers often choose the premium housing segment because they enjoy greater profit margins and it attracts affluent buyers. Moreover, such buyers can easily afford premium housing as they experience rapid increases in household income due to economic progress. The premium segment has a price range of USD 3,000 to USD 5,000 per square meter.
Luxury Property Segments
The emergence of high-net-worth individuals in Vietnam, has resulted in luxury properties making their appearance in HCMC. As a result of the rapid pace of increase in HCMC’s land price, developers have increased their selling price. Additionally, developers need to deliver a product that can justify its price point to keep sales moving. Recently, hotel branded ultra-luxury properties are setting a new price ceiling in HCMC’s real estate market. The luxury segment categorizes any product above USD 5,000 per square meter, while ultra-luxury properties are in excess of USD 15,000 per square meter.
The second homes (vacation properties) market have been robust as local buyers aspire to own their own holiday getaway real estate on the highlands and beach fronts. Vacation properties are both a choice of investment and as a trophy asset. They have been gaining in popularity locally because of Vietnam’s rapid economic progress and new found wealth.
New Project Launches
We have been in the business of selling and marketing (launching) new projects for Vietnam’s prominent real estate developers for years. Successfully conducting over 20 launch campaigns for these leading developers. As such, our experience helps you navigate the legal and financial complexities of buying an off-plan property. Also helping to identifying the right new launch property in accordance with your personal goals. We pride ourselves at being able to provide property buyers with a detailed overview of Ho Chi Minh City’s residential property market.