Ho Chi Minh City housing supply shifts toward suburban areas

The real estate market in Ho Chi Minh City is experiencing a significant shift in housing supply toward suburban areas. According to data from CBRE Vietnam, new apartment and landed property offerings have increased by 20% compared to the same period last year. This movement is driven by limited land availability in the city center and the expansion of connecting infrastructure in satellite urban areas.

Binh Duong is expected to play a major role in this transition, potentially contributing between 70% and 80% of the total new supply offered in the Ho Chi Minh City market over the next five years. By 2026, the total apartment supply for the region is projected to reach approximately 45,000 units.

In the existing Ho Chi Minh City areas, supply is forecasted to concentrate in regions with remaining development potential, with the Southern district expected to account for 50% of new apartment supply and the Eastern district for 30%. These areas benefit from improved transportation infrastructure and large-scale urban development projects.

Land valuation remains a fundamental pillar for the entire land finance system, influencing state budget revenue, market transparency, and the balance of interests between the state, land users, and investors. Unlike standard commodities, land value is influenced by unique economic characteristics, such as its finite nature and non-substitutable locations.