Real Estate Brief: Apartment Supply to Rise as Housing Prices and Rents Remain Challenging

The real estate market is showing contrasting developments across multiple segments. While housing prices in major urban areas have moved beyond the affordability of many residents, the rental housing segment is considered to have room for growth but still faces challenges related to supply, rents and mechanisms to attract business investment. In Ho Chi Minh City, nearly 43,000 apartments are expected to be added to the market by the end of 2027, with most concentrated in suburban areas, although the current average primary asking price has exceeded VND 100 million per square meter. The city has also added 147 land sites to a pilot list for housing projects, but the process from vacant land to completed homes may still encounter significant legal obstacles. In the shophouse and commercial property segment, many premises on busy streets remain vacant because of high rents and changing business models. Some landlords accept leaving properties unused rather than making deep rent cuts, while businesses need reasonable rents and long-term leases to invest with confidence.

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