The real estate market in Ho Chi Minh City is experiencing contrasting trends in apartment and house prices. While new apartments continue to see price increases despite a rise in supply, single-family homes and townhouses are witnessing significant price reductions. The burden of loan repayments and changes in housing purchase criteria are contributing to a clear disparity in prices across different types of housing.
According to local media reports on October 12, 2026, including VnExpress, the asking prices for single-family homes and townhouses in Ho Chi Minh City have dropped by 10 billion to 50 billion dong (approximately $520,000 to $2.58 million). In contrast, global real estate consultancy Knight Frank Vietnam reported that the average selling price of new apartments in Ho Chi Minh City rose to about 11 million dong per square meter in the third quarter of this year, marking a 12% increase compared to the same period last year.
Price adjustments for single-family homes are evident even in central Ho Chi Minh City. A 64-square-meter house near Le Van Sy Street in the Binh Thanh district was listed for sale at 128 billion dong, down about 20 billion dong from September. The property is mortgaged, and the owner is hastening the sale to repay loans, but potential buyers are offering between 80 billion and 90 billion dong. A nearby 56-square-meter house that was listed for 140 billion dong in May sold for 108 billion dong in September. In the District 3 area, a five-story building that was initially priced at 150 billion dong has seen its price drop to around 108 billion dong.
This trend is also reflected in market research. According to the Vietnamese real estate platform Batdongsan, the asking prices for houses along Ho Chi Minh City roads have decreased by an average of 6% to 10% over the past nine months. DKRA Consulting also noted that the average prices for single-family homes and townhouses have fallen by 10% to 15% compared to the same period last year, with properties under pressure from loan repayments experiencing the largest declines.
New Apartment Prices Rise 12% Despite Increased Supply
Unlike single-family homes, the market for new apartments in Ho Chi Minh City continues to see price increases. Although new supply has risen, the focus on high-end housing has influenced the average selling price. Knight Frank Vietnam reported that the average selling price of new apartments in the Ho Chi Minh area prior to administrative consolidation reached 11 million dong per square meter in the third quarter, a 3% increase from the previous quarter and a 12% increase from the same period last year.
For the entire integrated Ho Chi Minh area, which includes Binh Duong and Ba Ria-Vung Tau provinces, the average selling price was approximately 9.76 million dong per square meter, up 2.3% from the previous quarter. In the city center, the supply of luxury and ultra-luxury apartments is concentrated, while relatively lower-priced housing is found in the outskirts.
Both supply and transactions have increased. In the third quarter, the number of new apartments supplied in the central Ho Chi Minh area reached 2,711 units, a 48% increase compared to the same period last year. Across the integrated Ho Chi Minh area, 7,203 units were newly supplied, with transaction volumes reaching 7,544 units. Knight Frank Vietnam forecasts that an additional 42,593 apartments will be supplied in Ho Chi Minh City by the end of 2027, with more than half expected to be concentrated in existing urban areas.
High Interest Rates and Low Rental Yields Shift Buyer Preferences
Despite falling prices for single-family homes, transactions are not easily completed due to buyers' financial burdens. With more options available, homebuyers are scrutinizing loan interest rates and rental yields more carefully.
An estate agent in Ho Chi Minh City explained that while some high-priced homes have reduced their prices by billions of dong, there remains a significant gap between what buyers can afford. He noted that homes priced between 500 billion and 700 billion dong (approximately $26 million to $36 million) are still burdensome for buyers with budgets of 300 billion to 400 billion dong, stating, "For them, these prices are still difficult to manage."
Local real estate loan interest rates generally range from 12% to 14% annually, with some variable rates reaching 15% to 16%. Consequently, buyers are prioritizing their actual loan repayment capabilities over the extent of price discounts. Additionally, low rental yields are influencing purchasing decisions. A representative from the real estate platform Batdongsan.com noted that the annual rental yield for single-family homes and townhouses is around 2%, making it challenging to expect returns that match the purchase price.
There is also a growing demand for residential convenience. Comments from local articles indicate a preference for residential complexes equipped with essential amenities such as schools, parks, and parking facilities over houses located in narrow alleys.
In summary, while new apartment supply continues to expand and prices rise, single-family homes are experiencing price reductions with delayed transactions. As buyers weigh loan burdens, living conditions, and rental yields, the disparity in price expectations between sellers and buyers is likely to remain a key issue in the market.
* This article has been translated by AI.
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