Vietnam has emerged as the third country in the world with the most branded luxury homes. In Ho Chi Minh City, the price of ultra-luxury apartments is nearing 10 billion VND (approximately $51,000) per square meter, highlighting a significant gap between the luxury housing market aimed at the ultra-wealthy and the housing realities faced by ordinary citizens.
According to a report released on October 14 by the UK real estate consulting firm Global Brand Residence (GBR), Vietnam has 16,135 branded homes either completed or under development, ranking third globally after the United Arab Emirates (UAE) with 84,972 units and the United States with 71,592 units.
Branded homes are residential facilities operated or marketed by renowned hotel and luxury brands such as Marriott and Ritz-Carlton. Ho Chi Minh City leads with 3,503 units, followed by Ha Long with 2,860 units and Da Nang with 1,429 units. In terms of project numbers, Vietnam ranks second in the Asia-Pacific region, following Thailand, which has 73 projects. Notably, the Mercure Residence Ha Long, with 2,259 units, is the largest single branded housing project in the Asia-Pacific region.
Luxury Housing Market for the Ultra-Wealthy
As the supply of luxury housing rapidly increases, apartment prices in central Ho Chi Minh City are also reaching high levels. Some developments are priced up to five times higher than typical new apartments, limiting the purchasing power of potential buyers. According to real estate consulting firm Avison Young Vietnam, the average selling price of ultra-luxury apartments in Ho Chi Minh City in the second quarter of this year was approximately $18,000 (about 24 million VND) per square meter, more than double the average price of regular luxury apartments at $8,000 (about 10.7 million VND).
In comparison, the selling prices of typical new apartments in the same area range from $3,500 to $5,900 (approximately 469 million to 791 million VND) per square meter, indicating a price difference of about three to five times. Particularly, some developments near Ben Thanh Market in central Ho Chi Minh City approached 10 billion VND per square meter. These high-end properties primarily target a small group of wealthy individuals, leveraging their association with global brands and prime urban locations.
Nguyen Thai Binh, vice president of the Vietnam Real Estate Brokers Association, explained at a recent real estate forum that the high selling prices reflect investors' expectations regarding brand value and location. He noted, "Such exorbitant prices have made urban real estate a market with extremely limited participants. Most investors find it difficult to access this market due to a lack of funds."
The primary clientele for the ultra-luxury housing market consists of ultra-high-net-worth individuals with assets exceeding $30 million. Global real estate consulting firm Knight Frank projects that the number of ultra-high-net-worth individuals in Vietnam will increase by 59% over the next five years.
Luxury Apartments Rank Third Globally, Middle Class Moves to Outskirts
In contrast, ordinary citizens are turning to relatively lower-priced areas on the outskirts to escape the high urban housing prices. Despite the increase in ultra-luxury apartment supply, the middle class and actual homebuyers are struggling to purchase homes. A survey by Avison Young found that the average selling price of new apartments in the Binh Duong area in the second quarter of this year ranged from $2,000 to $2,900 per square meter. The former Ba Ria-Vung Tau area had prices between $1,800 and $5,200.
While these prices are relatively lower compared to central Ho Chi Minh City, they do not completely alleviate the financial burden of purchasing a home. Experts suggest that potential buyers are delaying their decisions, waiting for stable interest rates and reasonable selling prices.
Changes in the housing supply structure are expected in the future. Avison Young forecasts that more than 30,000 new apartments will be supplied annually in Ho Chi Minh City from 2027 to 2030. The development of transit-oriented developments (TOD) around subway stations and the expansion of regional transportation networks, such as the Third Ring Road, are cited as factors that will increase the supply of mid-priced housing.
Avison Young stated, "In a situation where urban housing prices are excessively high, these homes will become key products that meet the actual housing needs of young people and the middle class."
Local opinions on the expansion of ultra-luxury apartments are mixed. One commenter on a related article pointed out, "While luxury apartments rank third globally, I question whether the market truly meets the needs of actual residents or is merely for ultra-wealthy investors." Another commenter expressed, "The price of 10 billion VND per square meter feels burdensome." Conversely, some accepted the growth of the luxury housing market, stating, "Each brand targets different customer segments, and there are many wealthy individuals in Vietnam."
Meanwhile, Vietnam is simultaneously developing branded housing aimed at ultra-high-net-worth individuals and mid-priced housing for ordinary citizens. However, as high selling prices in urban areas push actual buyers to the outskirts, the challenge remains to see how much the expansion of transportation networks and new housing supply can reduce the housing burden for the middle class.
* This article has been translated by AI.
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