HO CHI MINH CITY TOWNHOUSES AND PRIVATE HOMES SEE PRICE CUTS AMID SLOWER MARKET ACTIVITY

The private home and townhouse segment in Ho Chi Minh City is experiencing a noticeable price correction as market liquidity weakens and buyers become increasingly cautious.

After more than five months on the market, a homeowner in the Bay Hien area recently agreed to reduce the asking price of his property by over VND 500 million to secure a deal. The nearly 40-square-meter house, originally expected to sell for more than VND 7.5 billion at the end of last year, was eventually sold for approximately VND 6.9 billion after extensive negotiations.

According to local brokers, such cases are becoming increasingly common. Owners of high-value townhouses and private homes are adjusting their price expectations in an effort to attract buyers amid declining transaction volumes.

In another case, an 85-square-meter private house in An Hoi Dong Ward has been listed since mid-2025 at VND 11 billion. Despite attracting considerable interest, the property remains unsold, as most prospective buyers are only willing to pay between VND 7 billion and VND 8 billion. The owner has since lowered the asking price to VND 9.8 billion but has yet to find a suitable buyer.

Prices Decline Across Multiple Districts

Market observations indicate that asking prices for private homes in Ho Chi Minh City have been adjusted downward across various districts.

In central and near-central areas, including Districts 1, 3, and 10, as well as Binh Thanh, Phu Nhuan, and Tan Binh districts, price reductions generally range from 3% to 8%, with some properties recording declines of more than 10%.

Meanwhile, suburban locations such as Go Vap, Binh Chanh, Nha Be, District 12, and the former District 9 have seen even steeper adjustments, typically ranging from 5% to 12%.

The townhouse segment has followed a similar trend. Prices in inner-city areas have fallen by approximately 5% to 10%, while suburban properties have declined by 6% to 8%, reflecting sellers’ willingness to lower expectations in order to improve transaction prospects.

Recent market data shows that average townhouse asking prices in Ho Chi Minh City fell from around VND 213 million per square meter to approximately VND 197 million per square meter in the second quarter, representing a decline of nearly 8% compared to the end of last year. Private home prices also dropped by about 3.4%, from VND 120 million per square meter to around VND 116 million per square meter.

Buyers Are Taking More Time to Decide

Real estate experts believe the slowdown in overall market activity is having a direct impact on the private home and townhouse segments.

Unlike previous years, when buyers often made quick decisions amid rising prices, today's purchasers are spending more time researching, comparing options, and negotiating before committing to a transaction.

Properties valued at VND 7-10 billion or higher are particularly affected, as financing constraints and cautious lending policies continue to limit purchasing power. As a result, demand from buyers relying on leverage has weakened significantly.

At the same time, the investment appeal of private homes and townhouses has declined. Rental yields currently average around 2% per year, while maintenance costs, operational expenses, and vacancy risks continue to rise.

Changing Housing Preferences

Another factor influencing demand is the shift in homeownership preferences, particularly among younger buyers.

Where owning landed property in the city center was once considered the ultimate goal, many homebuyers today prioritize quality of life, financial flexibility, and access to modern amenities. With the same budget, buyers are increasingly choosing apartments or homes within well-planned urban developments that offer green spaces, parking facilities, integrated infrastructure, and comprehensive services.

As a result, standalone houses are facing growing competition from apartment projects and large-scale urban developments.

Long-Term Value Remains Intact

Despite short-term pricing pressure, industry observers maintain that private homes and townhouses continue to offer strong long-term advantages due to their land value, limited supply, and wealth-preservation potential.

As urban land becomes increasingly scarce and opportunities for new developments in central locations diminish, properties with prime locations, clear legal status, good accessibility, and practical usage value are expected to maintain stronger liquidity than the broader market.

However, assets priced significantly above their intrinsic value or beyond the purchasing power of end-users are likely to face continued downward pressure as the market seeks a more sustainable balance between supply and demand.