VND5 billion no longer buys luxury apartments

According to real estate market research firms, apartments in HCMC now commonly sell from VND70 million per sqm to over VND300 million. Among these, prices around VND100 million are gradually becoming the common level in many near-central areas.

About 5 years ago, VND5 billion was enough to buy a high-end apartment in Thu Duc or areas near the center, but now this budget mainly fits 1 to 2-bedroom units or projects handed over many years ago.

A survey by VietNamNet reporters found that in Thao Dien, considered a "rich neighborhood" and a hotspot for HCMC’s luxury apartment market, selling prices range from VND110 to 200 million per square meter.

At those prices, buyers with VND5 billion can generally only afford a modest one-bedroom apartment, while two- and three-bedroom units in luxury developments typically cost between VND10 billion and VND20 billion or more.

In Thu Duc, apartment prices continue to rise, with clear differences across locations. Prices commonly range from VND80 million to VND120 million per sqm, while projects in An Phu and Nam Rach Chiec have recorded prices of VND120 million to VND180 million per sqm.

With a budget of VND5 billion, buyers are largely limited to two-bedroom units in selected mid-range projects. A budget closer to VND10 billion provides significantly more options in the premium segment.

In the former Binh Thanh District, one of HCMC's most expensive residential markets thanks to its proximity to the Saigon River and the central business district, apartment prices range from VND130 million to VND180 million per sqm. Notably, apartments in the Landmark 81 tower are priced from VND150 million per sqm to more than VND400 million per sqm.

With VND5 billion, buyers can only access a limited number of small one-bedroom units. A budget of VND8-10 billion is generally required to purchase a two-bedroom apartment in some riverfront developments.

Meanwhile, Phu My Hung remains one of the few areas offering products that cater to owner-occupiers while maintaining relatively more affordable pricing within the upscale segment. With VND5-6 billion, buyers can still purchase an apartment of around 70 sqm in projects such as Sky Garden or Hung Vuong.

Even VND10 billion falls short of luxury segment

With a budget of around VND10 billion, buyers gain access to a wider range of options in near-central areas of HCMC.

In the former Binh Thanh District, that amount is sufficient to purchase a three-bedroom apartment of approximately 90-110 sqm in riverfront projects or developments near Landmark 81. In Phu My Hung, buyers can access higher-end projects with floor areas ranging from 90 sqm to 120 sqm.

However, in Thu Thiem New Urban Area, widely regarded as HCMC's luxury apartment capital, a VND10 billion budget is only enough for smaller units or resale properties priced below the market average.

Many projects in Thu Thiem are priced between VND200 million and VND300 million per sqm, while some premium developments command prices of up to VND500 million per sqm thanks to prime locations and direct Saigon River views. Two-bedroom apartments of around 85 sqm are commonly offered at VND18-20 billion.

Market observations show that apartments priced between VND80 million and VND120 million per sqm currently account for the largest share of HCMC's housing market. This is also the segment that has attracted the majority of new supply in recent years.

So, buyers now need to prepare a budget of approximately VND7-10 billion to purchase a 70-80 sqm apartment in HCMC.

While the ultra-luxury segment in Thu Thiem and the city center caters primarily to ultra-high-net-worth buyers, apartments priced around VND100 million per sqm are increasingly becoming the market's new benchmark.

The rising price floor means that VND5 billion is no longer enough to access the luxury segment as it once was. Instead, it is gradually becoming the standard budget for purchasing moderately sized apartments in locations farther from the city center.

According to David Jackson, CEO of Avison Young Vietnam, the average primary-market apartment price in HCMC currently stands at about $2,500 per sqm, equivalent to roughly VND65 million per sqm. Meanwhile, the average primary price of high-end apartments has reached approximately $4,700 per sqm, or around VND123 million per sqm.

Anh Phuong