The policy of expanding foreign ownership quota (allowing eligible projects to be sold to foreign buyers) is a crucial step to help the market absorb international capital flows, while laying the foundation for the city to affirm its position as a regional integrated real estate hub in Southeast Asia. 

Ho Chi Minh City has just announced 48 additional projects eligible for sale to foreign individuals and organizations, raising the total number to 65 projects. This move is considered an important milestone in attracting foreign capital flows and generating legitimate demand for the market. 

According to Mr. Nguyen Khanh Duy, Director of Residential Sales, Savills Ho Chi Minh City: “The ownership cap of 30% of apartments in a condominium, or 250 landed houses per ward, will allow the market to absorb foreign capital without causing excessive price volatility. This is a significant boost to liquidity.” 

Supply Shortage – A Major Pressure on the Market 

According to Savills Vietnam’s Q2/2025 data, Ho Chi Minh City has faced a housing supply shortage for the past five years. The city set a target of developing 235,000 new homes during 2021–2025, but so far has only achieved around 24%, leaving a shortfall of 179,000 units. 

In Q2/2025, HCMC recorded only 1,600 new apartments (up 38% y-o-y), bringing the primary supply to a modest 5,400 units. Sales reached 2,400 units, equivalent to an absorption rate of 45%. In the first half of 2025, primary supply totaled 6,800 units, with 3,800 sold. Between 2025 and 2027, the future pipeline is expected to reach about 39,000 units – still relatively modest compared to actual demand. 

In the landed property segment, conditions are even more challenging. Q2/2025 saw just over 600 primary units and only 80 new launches. Absorption dropped to 15%, with 100 units sold, amid high-end inventory pressure and a limited buyer pool. By mid-2025, the primary supply was only 700 units, with 170 transactions. From now until 2027, the city is expected to add only about 3,600 new landed homes, mostly in suburban areas. 

However, in the long term, positive changes and reforms in the application of new laws and streamlined legal approval processes are expected to support the growth outlook for Ho Chi Minh City’s housing market.

Appetite and Foreign Capital

Along with these changes, foreign capital flows are gradually finding their way back. The current legal framework has become far more open, especially with the Housing Law 2023 allowing foreigners to own commercial housing for 50 years, with possible extensions. Nonetheless, obstacles remain, as the Land Law 2024 has yet to recognize them as “land users.” 

Mr. Duy explained: “Buyers can establish legal homeownership rights, but land use rights still belong to the designated legal entities. Therefore, it is crucial to clarify these in contracts and certificates to safeguard customers’ interests and minimize legal risks.” 

In terms of investment appetite, foreign buyers often seek mid- to high-end apartments, moderate in size, branded by international developers, located in central areas or near metro lines. Typical transaction values range from USD 500,000 to 1 million per unit, with investors mainly from Singapore, Hong Kong, South Korea, Taiwan, and the overseas Vietnamese community. 

“A controlled opening policy will support primary prices and raise service standards. Developers with projects eligible for foreign sales will hold a significant advantage in accessing international distribution channels,” Mr. Duy noted.

North–South Investors and Long-Term Outlook 

Alongside foreign capital, Savills also observed a strong inflow of Northern investors into Ho Chi Minh City. According to Mr. Duy, three factors drive this trend: HCMC’s price levels remain lower than Hanoi’s; major infrastructure projects such as Ring Road 3 and Long Thanh Airport are fueling strong expectations; and new supply in HCMC and surrounding areas is more diverse. “This indicates that the Southern market will continue to be the destination for Northern investors in the coming years.” 

Looking further ahead, Mr. Duy emphasized that transparent project listings, administrative reforms, and synchronized infrastructure investment will help Ho Chi Minh City affirm its position as Southeast Asia’s integrated real estate hub. “The city has opportunities not only to attract FDI into real estate but also to expand into finance, asset management, and related services.” 

In this context, Savills Vietnam has just launched a sales office at the Sala Urban Area, Thu Thiem. This office serves as a comprehensive advisory hub where customers can access a wide range of products – from high-end to affordable units, including international offerings. At the same time, it functions as a training and service quality enhancement center for staff, aiming to deliver a professional and differentiated customer experience. 

Here, clients are not only advised on individual projects but also supported at a higher level: real estate portfolio advisory and management tailored to long-term needs. 

Learn more about our Residential Sales service.