With steady growth, the apartment market in Viet Nam in Q4/2024 continues to attract the attention of investors and homebuyers. Savills Q4/2024 Market Brief provides an overview of the situation and developments of the apartment real estate market in Ho Chi Minh City (HCMC) and Ha Noi in the past quarter.

1/ HCMC apartment market

1.1/ Supply improves but remains limited

HCMC apartment market in Q4/2024 recorded a significant improvement in primary supply. Specifically, the primary stock reached 6,500 units, which grew 35% quarter-on-quarter (QoQ) but was down 13% YoY. Although new supply recorded a strong increase, with 2,700 units, representing 243% QoQ, it was still 3% lower year-on-year (YoY).

In total, primary supply reached nearly 11,900 units in 2024, up 10% YoY. However, the Class C apartment segment is still facing a severe shortage, with the number of Class C apartments remaining at only about 1,300 units, the lowest level in the past decade.

1.2/ High-end projects lead the market

In Q4/2024, the number of transactions in high-end projects reached 2,700 units, up 43% QoQ, although down 10% YoY. The absorption rate of high-end apartments reached 42%, increased by 2% QoQ and 1 percentage point (ppt) YoY.

One of the highlights of the high-end segment is the remarkable growth of apartments priced above VND 80 million/sq m. Transactions in this segment increased by 561% quarter-on-quarter and 2,118% YoY, accounting for 76% of total transactions.

In 2024, the total number of apartment transactions reached 8,000, growing 29% YoY. The Class B apartment segment accounts for the largest proportion at 67%, followed by Class C apartments (28%) and Class A apartments (5%). This distribution shows that demand is still focused on the mid-range and high-end segments, while the low-cost apartment segment may be neglected.

1.3/ Shifting demand trends

Due to the scarcity of apartments priced at VND 50 million/sq m, buyers have shifted to suburban areas of HCMC, such as Binh Duong, Dong Nai and Long An. In these areas, apartment prices range between VND 30-40 million/sq m, providing homeownership opportunities for many customers.

This trend has helped the Binh Duong apartment market record impressive growth, with a transaction increase of over 200% compared to the previous year. This shows the increasingly important role of the areas on the outskirts of HCMC in the real estate market, especially when real estate prices in the city centre continue to increase sharply.

1.4/ HCMC Market Apartment Outlook in 2025

It is forecasted that from 2025, the HCMC apartment market will continue to receive a substantial supply. More than 10,000 apartments are expected to be launched, of which the Class B segment accounts for 54% of the total supply. This is a positive signal for customers looking for mid-range housing products.

By 2027, the total apartment supply in Ho Chi Minh City will reach about 46,000 units from 69 projects, with Thu Duc City accounting for 52%, Binh Tan at 11%, and District 7 accounting for 10%. These areas will continue to be the market's focus, with strong infrastructure development and urban planning.

With the current trend, Class A and B apartments will continue to lead the market, while the low-cost apartment segment still faces many difficulties in reaching customers.

2/ Ha Noi apartment market

2.1/ Highest volume of launches since 2020

In Q4/2024, the Ha Noi apartment market witnessed a strong wave of new supply. Specifically, the new supply reached 12,972 units, a sharp increase of 146% compared to the previous quarter and 351% compared to last year. At the same time, primary supply reached 16,629 units, an increase of 58% QoQ and 40% YoY.

Overall, the total new supply of the Ha Noi apartment market reached 24,996 units throughout 2024, reaching the highest level in the past 5 years. Class B dominated with a 97% market share, mainly thanks to the contribution of large projects such as Vinhomes Ocean Park and Vinhomes Smart City, accounting for 89% of new supply in the year.

2.2/ New supply performs well

Sales results in Q4/2024 showed a very positive situation, with 13,401 apartments sold, up 96% QoQ and 340% YoY. Notably, new supply accounted for 83% of the units sold, with an absorption rate of up to 85%. This success can be explained by the projects' clear legal status and the developers' reputation.

Primary asking prices in Q4/2024 also grew significantly, reaching VND 75 million/sq m, increasing 9% QoQ and 29% YoY.

2.3/ Popular price segments

In 2024, units priced above VND 4 billion will account for 59% of total apartments sold, a sharp increase compared to only 2% in 2020. Apartments priced between VND 2 billion and VND 4 billion will account for 40%, while only 1% of apartments are priced below VND 2 billion.

2.4/ Solid secondary apartment market

The secondary market in Ha Noi has also recorded strong growth. In particular, real estate projects near Metro Line 2A and Line 3 stations have seen a sharp increase in secondary prices, up to 24% QoQ, exceeding the market average by 4 ppts.

Since 2020, the average secondary price has grown steadily, with a growth rate of 22%/year. The Grade C segment recorded the highest growth rate of 26%/year, followed by Grade B (20%) and Grade A (19%).

2.5/ Demand drivers

Domestic buyers mainly drive housing demand in Ha Noi. Long-term factors such as positive net immigration and intense urbanisation are essential in maintaining stable demand.

According to the Ha Noi Capital Planning for 2030, the permanent population is expected to reach 11 million people, a significant increase from the current 9 million people. In addition, the transient population will be 1.5 million. The urbanisation rate will reach 70% by 2030, a sharp increase from the current level of 49%. This is an essential factor driving housing demand in the future.

2.6/ Ha Noi Apartment Market Outlook 2025

Ha Noi's apartment market is expected to grow strongly in the coming years. In 2025, the new supply is expected to reach 25,200 apartments, with Class B continuing to lead, accounting for 88% of future supply. Mega projects will contribute 70% to the market share.

From 2026 onwards, the apartment market will witness the participation of about 70,000 units from 91 projects. Areas such as Dong Anh, Hoai Duc and Hoang Mai are expected to contribute up to 52% of the market share, affirming the strong development potential of these areas in the future.

See more details in the Q4/2024 Market Brief from Savills just released.