Ho Chi Minh City Outskirts See Apartment Premiumization Wave, Driving Up Prices

A notable "premiumization" trend is emerging in apartment projects in the satellite cities surrounding Ho Chi Minh City. Particularly in the former Binh Duong province area, new apartment prices are reaching VND53-76 million per square meter, nearly doubling from VND30-40 million a few years ago, pushing many new offerings into the near-premium and premium segments. According to Avison Young Vietnam's Q2 market report, approximately 12,000 new apartments were launched in Ho Chi Minh City, with about 60% concentrated in the former Binh Duong area. CBRE Vietnam statistics also indicate that around 95% of new apartment supply in this region falls into the near-premium and premium categories. Prices vary by project, with CapitaLand's Orchard Collection within the Sycamore urban area starting at approximately VND65 million per square meter, and Becamex Tokyu's Midori Park The Ten II reaching up to VND80 million per square meter. This premiumization is driven by simultaneous shifts in market supply and demand, according to Dương Thùy Dung, Director of Operations at CBRE Vietnam. Previously, low prices were the primary draw for the former Binh Duong area. However, it is now increasingly viewed as an extension of the city, reducing psychological barriers to living in the suburbs. Furthermore, infrastructure improvements, including upgrades to National Highway 13 and the Ring Road 3 and 4, have shortened travel times to the city center, creating fertile ground for large-scale, higher-segment projects. Cao Thị Thanh Hương, Deputy Director of Research at Savills TP.HCM, concurs that the influx of domestic and international developers is accelerating this upgrade process. Competition is shifting from low prices to the development of integrated urban areas and apartment complexes with synchronized planning, amenities, and infrastructure. This trend of supply premiumization is expected to continue in the coming years due to limited land in central Ho Chi Minh City and the expansion trend towards satellite cities. However, experts caution that the supply structure needs to be balanced to avoid excessive concentration in the premium segment, ensuring that genuine homebuyers can still access housing.