HOMEBUYERS IN HO CHI MINH CITY INCREASINGLY TURN TO SUBURBAN DEVELOPMENTS

69% of Homebuyers Are Open to Moving to Suburban Areas

The trend is becoming increasingly evident in the second-quarter real estate consumer sentiment survey published by Batdongsan. Among 1,000 respondents in Ho Chi Minh City, 69% said they were willing to consider suburban areas or newly developed urban zones, primarily to obtain more spacious homes at more affordable prices.

By contrast, 27% of respondents continued to favor central locations, even if that meant accepting smaller living spaces and higher property prices.

Notably, location is no longer the only factor influencing homebuying decisions. Approximately 72% of owner-occupier homebuyers said they preferred areas with newly developed infrastructure and convenient transport connections.

Other considerations, including building density, green spaces, parks, schools, healthcare facilities and community amenities, are also playing a greater role in the decision-making process.

Housing Supply Is Shifting Away from the Urban Core

The change in buyer preferences is occurring alongside a geographical shift in the supply of new apartments.

According to Batdongsan, before 2024, Ho Chi Minh City typically accounted for around 60–85% of the citywide supply of newly launched apartments, while more than half of market demand was concentrated in the area.

Since 2024, however, this proportion has declined to approximately 20–40%. Meanwhile, both housing supply and demand have become more widely distributed across areas formerly belonging to Binh Duong, as well as Tay Ninh and Dong Nai.

Data from CBRE Vietnam also reflects this shift. During the first half of the year, approximately 80% of new apartment supply in Ho Chi Minh City came from the former Binh Duong area, which also recorded notable market liquidity.

In the second half of the year, nearly 8,000 apartments across approximately 22 projects are expected to be launched. Most of the new supply will be concentrated in the eastern part of the city, with Binh Duong continuing to serve as a major source of housing supply.

Infrastructure Is Changing How Buyers Assess Location

The movement toward suburban areas is not driven by price alone. As transport networks expand and connectivity between different areas improves, geographical distance is increasingly being assessed in terms of actual travel time.

According to Duong Thuy Dung, Managing Director of CBRE Vietnam, this represents a notable shift in buyer behavior as Ho Chi Minh City moves toward a polycentric urban development model.

As transport connectivity improves, urban development can expand beyond the central districts. Newly developed integrated townships may offer relatively comprehensive systems of amenities, services and residential facilities, providing residents with more housing options.

Meanwhile, Dinh Minh Tuan, Southern Regional Director at Batdongsan, said travel time and connectivity are becoming increasingly important criteria when buyers evaluate a property’s location.

An area far from the city center can still attract buyers if it offers convenient transport links, integrated amenities and an established residential community.

Buyers Are Looking for More Than Lower Prices

An important point is that the shift toward suburban areas does not necessarily mean buyers are simply searching for cheaper properties.

Demand for larger floor areas, a better living environment, green spaces and comprehensive amenities is increasingly being considered alongside price.

In reality, property prices in many suburban areas have also risen significantly as large-scale urban developments expand and residential products become more upscale.

A CBRE survey conducted in June found that the average secondary-market price at integrated urban developments was approximately VND84 million per square meter, compared with around VND64 million per square meter at standalone projects with more limited amenities.

This price gap suggests that buyers are increasingly paying for a complete living ecosystem rather than simply for an apartment’s location.

The Price Gap Between Central and Suburban Areas Is Narrowing

Apartment prices in areas formerly belonging to Binh Duong, as well as Tay Ninh and Dong Nai, are no longer as low as they once were.

According to DKRA Consulting, apartment prices in the former Binh Duong area generally ranged from VND53 million to VND76 million per square meter in the second quarter. The average price in Dong Nai was approximately VND52 million per square meter, while prices in Tay Ninh exceeded VND48 million per square meter.

These figures indicate that the housing decision is gradually shifting from simply asking “Where is it cheaper?” to considering “What kind of living value does the investment provide?”

Buyers may be willing to live farther from the city center if they can obtain a larger home, more amenities, a better living environment and a commute that remains manageable.

Polycentric Urban Development Is Expanding Housing Choices

The shift in buyer behavior is taking place alongside the expansion of Ho Chi Minh City’s urban footprint and the development of neighboring areas.

As transport infrastructure continues to improve, locations previously regarded as suburban districts are gaining the conditions needed to become new urban growth centers. Integrated developments featuring residential, commercial, educational, healthcare, recreational and green-space facilities may play an important role in building sustainable residential communities.

As a result, the value of a property is increasingly being assessed across multiple dimensions, including floor area, price, connectivity, amenities and overall living quality.

This trend signals a gradual transformation in Ho Chi Minh City’s housing market: location remains important, but it is no longer the only deciding factor. Connectivity and quality of life are becoming increasingly central to the value of real estate.