As predicted by experts, after three months of application, the new official land-price list has had a significant impact on the real estate market. Not only land and townhouses, but apartments have also seen prices escalating.

Another 50 luxury apartments at Lancaster Legacy project developed by Trung Thuy Group, located on "golden land" in District 1, have been marketed with prices ranging from VND200 million to VND230 million per sqm.

According to a sales consultant at Eaton Park, a street-front project on Mai Chi Tho Street in Thu Duc City developed by Gamuda Land, apartment prices have increased compared with the days before Tet holiday.

One 60 sq m one-bedroom apartment is priced at VND7.5 billion, while a 2-bedroom 80 sq m apartment is VND14.5 billion, or VND180 million per sq m. Three-bedroom apartments are offered at VND17 billion.

Gamula Land last year ran two sale campaigns at four towers at Eaton Park project. The prices soared from VND120 million per sq m in the first campaign to VND145 million in the second. The developer is offering products in the third phase with the price of VND160 million per sq m on average.

After delivering townhouses last year, Masterise Homes has marketed over 600 apartments at the Masteri Grand View project in The Global City new urban area of Thu Duc City. The expected selling price starts from VND100 million per sq m.

In fact, official sales have not been launched yet, but the number of bookings is three times higher than the number of units offered. Amid the positive market response, Masterise Homes planned to launch the next sale campaign before the Tet holiday, but the plan was postponed. 

Opinions from well informed circles say the official price of Masteri Grand View will not be lower than the Eaton Park project.

Another project contributing to diversifying apartment supply in East Saigon this year is Alta Height at The 9 Stellars urban area by Son Kim Land. The project includes one tower with nearly 200 units, with an expected selling price of VND70-80 million per sqm. Although it has not been officially launched, the project has already seen a considerable amount of bookings.

Expected to be launched into the market this year, Dat Xanh Homes Riverside located in Nam Rach Chiec residential area in Thu Duc City, developed by Dat Xanh Group, will add 3,200 apartments to the market this year. The selling price at this project is about VND130 million per sq m.

Two apartment projects in Thu Duc City, King Crown Infinity and The Opus One, belonging to Vinhomes Grand Park urban area, are on sale at prices of no less than VND100 million per sq m.

Very few affordable units

Reviewing the HCM City apartment market last year, a market research unit pointed out that affordable apartments are still scarce. The supply in this segment is only 1,300 units, the lowest in the last decade.

In the fourth quarter of 2024, a total of 2,700 apartment were transacted, 78 percent of which are high-end, with selling prices of over VND80 million per sq m. 

The market research unit found that in 2024, the number of apartments with selling prices of VND50 million per sq m or less just accounted for 18 percent of total apartments sold in HCM City. 

As the prices escalated, home buyers had to seek supplies in neighboring provinces such as Binh Duong, Dong Nai and Long An, where apartment prices are just VND30-40 million per sq m.

Affirming that high-end products are dominating the HCM City market, Tran Khanh Quang, a real estate expert, attributed this to a shortage. Many projects cannot be executed because of legal problems.

The newly launched projects are mostly ones developed by financially capable investors. While there is a shortage, demand is still high, which explains why realtors choose to develop high-end products to optimize profits.

“I believe that high-end products will still dominate the market,” Quang said.

Asked if the new official land-price list was a reason behind the price escalation, Quang said yes and affirmed that this was foreseeable.

Anh Phuong