The real estate service provider reported that HCM City aimed to develop 235,000 new homes from 2021 to 2025, but only 24 percent, or a shortfall of 179,000 units, has been achieved.

In the first quarter of 2025, HCM City recorded 800 new apartments launched, a 70 percent drop from the previous quarter, with Category C housing (under VND50 million per sqm) making up just 13 percent of the total supply.

Savills Vietnam’s Giang Huynh predicted that about 8,000 new apartments will be launched in HCM City in the second half of 2025. However, most will be mid-range products (Category B), indicating that housing in the city primarily targets mid-to-high-end segments, with affordable housing still in short supply.

A VietNamNet survey found that since early 2025, before the provincial mergers, HCM City has seen almost no new apartment projects launched. Supply has mainly come from subsequent phases of existing projects, resulting in a lack of product diversity.

For example, a project near the former Thu Duc City center is selling over 40 apartments in its next phase, advertised at VND55 million per sq m. However, when contacted, a brokerage agent said only large units remain, priced at VND6.5–9.3 billion per unit.

At another project in former Thu Duc City, a broker advertising 300 apartments at VND50 million per sq m told reporters,“We’re sold out.”

Le Hoang Chau, Chair of the HCMC Real Estate Association (HoREA), said the housing shortage in HCM City has persisted since 2021. 

New projects rarely offer affordable housing (under VND30 million per sq m).

For high-end housing, Chau noted that from 2020 to 2023, this segment accounted for 70 percent of the market supply. Last year and in the first half of this year, all housing projects launched were high-end.

“Not only is affordable commercial housing gone, but mid-range housing has also vanished. This makes HCM City’s housing market imbalanced and unsustainable, resembling an inverted pyramid,” Chau said

“The biggest legal obstacle to housing supply development is the lengthy project approval process and issues with existing projects. In the next 6–12 months, prioritizing solutions to land-use cost determination and planning approvals is crucial to enable developers to launch projects and bring products to market,” Giang said.

At a recent socioeconomic press conference, Vu Anh Dung from the HCM City Department of Construction, noted that housing prices in HCM City are high compared to the region and country. Most housing is high-end, with no affordable commercial housing or options for low-income earners, making it difficult for residents to access and own homes.

The challenges being faced by realtors include legal bottlenecks in investment and construction (related to planning, land, and credit), economic crises, corporate restructuring, competitive pressures, and capital shortages.

To control and adjust housing prices in HCM City, Dung said coordinated efforts are needed.

First, it is necessary to increase the supply of housing suited to actual demand. Developing social housing and affordable commercial housing is a core solution. The city must prioritize land and incentives for social housing, worker housing, and low-cost commercial housing projects.

HCM City should resolve legal bottlenecks to accelerate project progress, boosting housing supply and easing price pressures. The city needs to review stalled projects, support businesses to overcome challenges, promote project construction for use, avoid resource waste, and increase housing supply.

Second, it is necessary to streamline administrative procedures and enhance transparency. With HCM City’s master plan in place, efforts should focus on resolving administrative processes for land allocation, leasing, pricing, and land-use conversions for real estate projects.

The HCM City Department of Construction is collaborating with agencies and developers to provide transparent planning and project information, helping buyers to make informed decisions and avoid misinformation-driven price surges.

Buyers can contact local commune, ward, or special zone authorities where projects are located to verify information and avoid price gouging. Authorities will intensify inspections and strictly handle individuals or organizations inflating prices, creating artificial market waves or disrupting the market.

“Developers building social housing or housing for low-income earners need access to priority credit packages. Similarly, middle- and low-income residents seeking social housing or affordable commercial housing should have access to preferential, low-interest loan packages,” Dung said.

Anh Phuong