Housing supply in Ho Chi Minh City remains limited

Vietnam’s southern metropolis continues grappling with residential supply constraints, as CBRE Vietnam’s Q1 2025 market pulse reveals merely 350 apartment units and 58 completed villas entering the market. Crucially, all new inventory derives from existing project expansions, signaling tangible progress in resolving longstanding legal gridlocks affecting property documentation.

CBRE Vietnam’s Executive Director Duong Thuy Dung identifies strategic breakthroughs, including an imminent sales contract commencement for a District 7 high-rise development. Concurrently, Thu Duc’s legacy housing stock (2016-2019 deliveries) prepares for long-awaited title deed issuance – a confidence-building measure projected to unlock 38,000 apartment certifications citywide this year. The district’s recent resumption of sales activities after a 24-month legal freeze marks a pivotal regulatory thaw.

Emerging Growth Corridors

• Satellite City Clusters: Western peripheries accelerate master-planned communities, buoyed by expressway networks and smart city infrastructure
• Cross-Provincial Synergies: Long An province’s Ben Luc eco-district attracts strategic reservations, while Duc Hoa’s 200-ha mixed-use development commences phased rollout
• Transit-Oriented Hotspots: Tan Phu’s airport-adjacent megaproject achieves 1,000+ reservations within 72 hours of presale launch

Market projections indicate western HCMC will dominate 2025’s supply pipeline with 8,600+ apartments and sub-1,000 landed properties, primarily clustered in emerging suburban nodes. This spatial redistribution aligns with municipal urban expansion blueprints emphasizing polycentric development.

Cross-Sector Momentum

• Office Market Resilience: Newly completed premium-grade commercial towers maintain 4,000+ sqm quarterly net absorption, with IT firms securing 31% of leased space
• Industrial Asset Performance: Southern industrial parks sustain 89% occupancy, while ready-built facilities achieve 72% (warehouses) and 89% (factories) utilization rates
• Tenant Migration Drivers: CBRE’s 2024 occupier survey identifies cost optimization (67%) and ESG-compliant spaces (58%) as key relocation motivators

“The market’s tectonic plates are shifting,” observes Thanh Pham, CBRE Vietnam’s Head of Strategic Insights. “Developers are pivoting from speculative housing to institution-grade asset curation, evidenced by industrial players constituting 45% of Q1 capital flows.” With infrastructure investments hitting $2.3 billion in southern economic corridors, the stage is set for Vietnam’s next-phase urbanization narrative.

Source : VN Express

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