In recent years, Ho Chi Minh City’s luxury real estate market has become increasingly vibrant, attracting foreign investors and discerning homebuyers seeking higher living standards.
A report from Knight Frank Vietnam published in November 2024 indicates significant growth potential for the city’s premium real estate sector, where high-end apartment prices currently range from $5,400 to $15,000 per square meter (USD). Ongoing infrastructure projects, particularly the expansion of highways and metro lines, have also contributed to rising property values in several key regions. Industry experts forecast that the upward trajectory of the luxury property market is likely to persist.
The ongoing administrative merger of Ho Chi Minh City with nearby Binh Duong and Ba Ria-Vung Tau is anticipated to greatly transform the high-end property scene.
Thu Duc: Leading Ho Chi Minh City’s Luxury Real Estate
Thu Duc City has become a pioneer in the high-end real estate market, thanks to swift infrastructure enhancements and the inauguration of Metro Line 1. CBRE Vietnam reports that in 2024, the resale prices of apartments along this metro line have surged by 15% compared to the same time last year. Since 2015, average apartment prices in these regions have climbed by 50–70%, with certain developments experiencing increases as high as 150%.
Looking forward, Thu Duc is set to develop into a global financial hub, focusing on industries like high-tech, healthcare, banking, education, and scientific research. This transformation is drawing in middle-class families and wealthy professionals. According to projections by Knight Frank Vietnam, the population is anticipated to grow to 2.64 million by 2040, with more than 20,000 expected to be specialists and highly skilled professionals. With the growth of high-income earners and the elite, the city’s commercial property market is projected to flourish along with it, particularly in office space, retail, and lifestyle services.
Binh Duong: Potential of Merging with Ho Chi Minh City
The upcoming merger of Ho Chi Minh City, Binh Duong, and Ba Ria-Vung Tau is expected to shift Vietnam’s luxury real estate market significantly. The Vietnam Association of Realtors (VARS) suggests that this merger could enhance the market by simplifying legal processes and increasing supply.
Binh Duong is a key player in boosting the high-end property sector. The province is gaining momentum with its strong appeal to investors, enhanced infrastructure, convenient transport connections, and a long-term focus on sustainable urban growth.
In addition to Binh Duong, Ba Ria-Vung Tau stands to gain from the merger, especially through avenues in resort real estate development. However, a report from DKRA Group reveals that the market remains relatively quiet, with the majority of activity focused on completed projects that have fulfilled legal requirements.
Final Thoughts
Given the signs of economic recovery in Vietnam, the proposed merger could lead to the emergence of a “new megacity,” potentially spurring national growth and aligning advancements with global benchmarks. In the real estate sector, Mr. Vo Hong Thang, Deputy General Director at DKRA Consulting, noted that market demand is still concentrated in major cities characterized by high population density and rapid urbanization.
