Apartment buildings along Metro Line 1 and Võ Nguyên Giáp Boulevard, Thủ Đức City. — VNA/VNS Photo

HCM CITY — HCM City’s apartment supply is expected to exceed 40,000 units by 2027, with Thủ Đức city accounting for half, according to Savills Vietnam.

The newly operational Metro Line 1 is a key driver for real estate projects, particularly in retail and office spaces. The commercial real estate sector typically lags behind the residential market. As communities grow and stabilise, demand for commercial spaces rises accordingly.

The townhouse and villa segment will see around 4,000 units from 19 projects, 30 per cent of which will also be in Thủ Đức. Neighbouring provinces like Bình Dương and Đồng Nai are gaining traction among investors and homebuyers.

Infrastructure investment in HCM City has largely focused on the eastern region, fueling long-term interest in Thủ Đức, noted Cao Thị Thanh Hương, Senior Manager at Savills HCM City. Many areas are evolving into satellite urban centres, with available land near the university village and high-tech park attracting major investments.

Several projects have capitalised on metro-adjacent locations and are performing well, such as Vincom Mega Mall Thảo Điền, Estella Place and OneHub in the High-Tech Park. These projects have achieved strong rental rates and occupancy levels, said Hương.

The housing boom in HCM City's eastern area is also driving expansion into Bình Dương and Đồng Nai due to high prices and limited new supply. Đồng Nai’s absorption rate has reached 78 per cent, surpassing HCM City by 35 percentage points, with most transactions in the VNĐ15-20 billion (US$587,000-626,000) range. Bình Dương follows at 65 per cent, mainly for properties under VNĐ10 billion.

CBRE Việt Nam predicts that as HCM City’s primary market remains costly, well-connected suburban areas will attract more buyers.

Avison Young Việt Nam emphasises that infrastructure and urbanisation are key to balancing supply and demand in landed property. Expanding ring roads, highways and public transport will enhance connectivity and support the sustainable growth of satellite cities. — VNS