Apartment segment regains momentum

Figures from Batdongsan.com.vn pointed out that apartments remain the most sought-after property type in both Hanoi and Ho Chi Minh City.

Notably, Hanoi’s apartment segment was the only category to record a rebound in buyer interest in May, rising 9 per cent compared to April. In contrast, other segments such as land plots, private houses, street-front properties, and villas saw declines of 15, 8, 8, and 4 per cent, respectively.

According to the latest survey conducted by the One Mount Group’s Market Research Centre in May, in the capital of Hanoi, apartments remain among the most sought-after real estate assets, accounting for half of respondents’ preferences.

Notably, 88 per cent of those interested in apartments indicated plans to purchase within the next two years, signalling robust short-term buying demand.

While the majority of interested buyers fall within the 35–44 age group, younger generations are also making a noticeable impact. Buyers aged 18–34 represent 27 per cent of the demand, highlighting a growing trend towards early homeownership among younger demographics.

Nguyen Quoc Anh, deputy CEO of Batdongsan.com.vn said, “This could be the first signal that investors and buyers are returning to safer segments. Investor psychology tends to follow cycles. When the market heats up, they rush into land, as we saw in March. But when uncertainty rises, they tend to revert to cash-flow-generating and liquid assets like apartments.”

Tran Minh Tien, director of the One Mount Group’s Market Research Centre, commented that the defining feature of the apartment sales market in the first five months was not only the increase in supply compared to the 2021–2024 average, but also the diversity in locations and price segments, from mid-range and high-end to social housing and luxury apartments.

“This signals the reactivation of ventures that were launched in previous years but had remained dormant,” Tien said.

Prominent Vinhomes projects such as Masterise Trinity Square, The Paris, and The Cosmopolitan simultaneously launched sales in May, contributing to a vibrant and dynamic apartment market landscape.

In addition, several other developments are currently in the booking phase and are expected to open for sale in June, such as Lumière Co Loa from Masterise Homes, The Matrix One Premium by MIK Group, and Galia Hanoi from MeyLand, among others.

According to projections from One Mount Group, Hanoi’s total primary apartment supply could exceed 8,000 units by the end of June, double the figure recorded in Q1 and nearing the peak seen in Q3 of last year, a period that marked a brief but notable market rebound following an extended slowdown.

In Ho Chi Minh City, interest in apartments rose 17 per cent in May compared to April. Land plots and private houses each increased by 7 per cent, street-front homes by 4 per cent, and villas by 22 per cent.

Apartment prices and rental rates in Ho Chi Minh City continued their upward trend, while other southern provinces also saw slight increases in sales prices.

Specifically, the average apartment price in Ho Chi Minh City is now around $2,400 per square metres, up 46 per cent compared to on-quarter. According to research data from Batdongsan.com.vn, secondary apartment prices in Ho Chi Minh City surged by 15–30 per cent in May compared to the same period last year, with the sharpest increases seen in high-end developments.

Savills Vietnam forecasts that new apartment supply for the entire year will remain constrained, with approximately 7,000 units expected to be launched. Around 90 per cent of this supply will come from subsequent phases of seven existing projects. Only four new undertakings are anticipated to open for sale, underscoring the ongoing legal bottlenecks, despite recent improvements.

However, starting from 2027, the market is projected to experience a strong rebound, with nearly 40,000 new units expected to be launched.

The Thu Duc area is forecast to lead the market, accounting for 55 per cent of total supply, followed by District 7 and Binh Tan district. The 2027 supply structure also signals a significant shift, with mid-end and affordable segments projected to make up 86 per cent of the total, aligning more closely with actual housing demand.

The serviced apartment market in Hanoi is continuing to grow robustly due to a strong inflow of foreign direct investment (FDI) and a boom in industrial zones.

Apartment prices in Ho Chi Minh City have reached an all-time high, averaging more than $4,690 per square metre in the first quarter of 2025, a 47 per cent increase on-year, according to a market report released by real estate consultancy Cushman & Wakefield on April 8.