A decade of unprecedented apartment price surge

Ten years of soaring prices

Apartment prices have entered a historic period of escalation, reshaping the country’s real estate landscape. Affordable mid-range projects are disappearing, replaced by premium benchmarks far beyond what most households can afford.

Ten years ago, a mid-range condominium sold for about VND 22 million per square meter in Hanoi and VND 25 million in Ho Chi Minh City. At the time, those prices were already considered high compared with low-cost launches just above VND 10 million.

Today, units in the VND 10-30 million range have almost vanished. By 2025, it has become virtually impossible to find new projects in Hanoi priced below VND 50 million per square meter. Apartments under VND 2 billion have also disappeared, as the market shifts almost entirely to high-end and luxury segments.

According to CBRE, the average primary market price in Hanoi now stands at VND 79 million per square meter, up 6% quarter-on-quarter and 33% year-on-year. In districts such as Ha Dong and Hoang Mai communes, once dominated by VND 40-50 million projects, new launches are now priced above VND 70 million.

In Ho Chi Minh City, CBRE’s second-quarter 2025 report shows average prices reaching VND 82 million per square meter, rising nearly 7% from the previous quarter and 29% from a year earlier. New phases of projects saw price hikes of 10–13% compared with earlier sales.

Savills data reveals that in Q2 2025, 67% of transactions in Hanoi were for apartments priced above VND 4 billion. Four years ago, that figure was just 6%.

Premium prices move outward

Premium pricing is no longer confined to central districts. In Hanoi, the 35-story The Queen project on Giai Phong street launched at VND 100 million per square meter. Sun Feliza Suites, at Pham Hung - Xuan Thuy intersection, shocked the market with prices of VND 130-180 million.

In mid-2025, MIK Group’s The Matrix Premium in Me Tri debuted at VND 130-150 million per square meter, sharply higher than its earlier 90–120 million range.

Across the Red River, projects in Long Bien and Dong Anh are commanding over VND 100 million per square meter. Northern Emerald is priced at VND 85-100 million, Long Bien Central starts at VND 130 million, while the branded Noble Crystal Long Bien exceeds VND 150 million.

In Gia Lam, The Senique Hanoi at Vinhomes Ocean Park 1 ranges from VND 65-89 million per square meter, while the Paris sub-zone is priced at VND 60-72 million. Masterise’s Grand Avenue in Dong Anh lists at VND 90-120 million, and MIK’s Imperia Signature Co Loa ranges from VND 87-115 million.

Who can still buy?

According to Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association (HoREA), about 70% of new launches each year are luxury units. Since 2021, housing priced under VND 30 million per square meter has disappeared from the city, while social housing remains scarce.

Prices have consistently outpaced middle-class purchasing power. Once considered lofty at VND 70 million, as Prime Minister Pham Minh Chinh noted, luxury and branded projects now command several times that level.

In Ho Chi Minh City, the Marriott-managed Grand Marina lists at VND 330-630 million per square meter, with units ranging from VND 20 billion to over VND 60 billion and penthouses fetching up to VND 250 billion. In Thu Thiem, prices soar to VND 300-400 million.

In Hanoi, The Ritz-Carlton Residences on Hang Bai street is marketed at VND 600 million to VND 1 billion per square meter, with 100-square-meter units valued above VND 100 billion.

Although these ultra-luxury projects cater to a small elite, they create an “anchor effect,” lifting expectations and legitimizing rising prices across all segments.

A growing wealth divide

As a result, apartments are increasingly unaffordable for ordinary buyers. Instead, well-capitalized investors - rather than end-users - are driving demand. Developers report that as many as 80% of transactions now come from wealthy investors.

This trend highlights a troubling reality: Vietnam’s wealth gap is widening. The wealthy continue to accumulate high-end property, while genuine homebuyers see their dreams of ownership slip further away.