Ho Chi Minh City apartment prices exceed 120 million VND/m2

In Ho Chi Minh City, the apartment market is facing significant challenges as high prices and rising borrowing costs deter buyers. According to a Savills report, 80% of new apartment offerings in the second quarter of 2026 are priced above 120 million VND per square meter, with most products concentrated in the high-end A and B segments.

While new supply has increased to 3,700 units in the first half of the year, the market absorption rate has dropped to 32%, representing approximately 1,500 transactions. This slowdown is attributed to average mortgage interest rates reaching roughly 13%, a 4% increase compared to the previous year. Despite developers offering interest rate support packages and fixed rates around 10% for the first one to two years, buyer sentiment remains cautious due to the widening gap between property costs and consumer affordability.