Western HCMC: A rising real estate hub amid supply shortages

Demand soars as prices rise

In recent months, HCMC’s apartment market has experienced a notable rebound, with search interest increasing by 25% in March 2025 compared to January 2024. According to Batdongsan.com.vn’s report in April 2025, the average price of apartments in the city has risen from VND 49 million per square meter in early 2024 to VND 59 million by March 2025. While prices have climbed, rents have largely remained stable, averaging VND 12 million per month per unit, contributing to a slight decrease in the overall rental yields in the city, now standing at around 3.1% annually.

However, certain areas and projects continue to offer attractive returns. RichStar and Saigon Intela are among those maintaining high yields, with returns of 4.8% and 4.3% annually, respectively. Celadon City, in particular, stands out with a yield range of 3.7% to 4.2% per year, supported by competitive rental prices and strong demand. The growth in prices within projects like the Emerald subdivision of Celadon City highlights the area's ongoing appeal, driven by its integrated amenities and green spaces.

Tan Phu leads in demand growth

Tan Phu district, part of the western region, is experiencing the highest demand growth among all of HCMC’s districts. Apartment search activity in Tan Phu surged by 20% in March 2025 compared to February 2025, according to Batdongsan.com.vn. This is a significant jump compared to other districts, where demand increased by 12% to 16%. The surge in interest is accompanied by a rise in the number of listings, making Tan Phu one of the top five districts in terms of available apartments.

The district’s growing appeal is largely due to major infrastructure upgrades, including the development of Metro Line No. 2 and several large urban projects that are improving connectivity and accessibility. With relatively affordable property prices compared to central and eastern districts, Tan Phu is becoming a preferred choice for both homebuyers and investors looking for value in an up-and-coming area.

Western HCMC: ideal for expats and professionals

The western districts, particularly Tan Phu, are increasingly attracting foreign professionals, including those working in aviation, logistics, and technical fields. Many of these expatriates are looking for apartments close to Tan Son Nhat Airport, allowing them easy access to the airport while still enjoying spacious living in a green and well-connected environment. Western HCMC projects typically offer a 30–40 minute commute to District 1, making them ideal for those who need convenient access to the city center but prefer a more peaceful, suburban lifestyle.

These professionals are drawn not only by the proximity to the airport but also by the amenities offered in the western part of the city. The region offers modern apartment complexes with green spaces, retail facilities, and recreational amenities — a key draw for those looking for a balanced lifestyle away from the hustle of central HCMC.

While most new apartment developments continue to be concentrated in the eastern part of the city, the western districts are experiencing a shortage of new supply, creating significant opportunities for large-scale, well-planned urban developments. This supply gap, combined with the region’s improving infrastructure, is helping position western HCMC as a future real estate hotspot.

As demand continues to rise, the western districts of HCMC are expected to see further growth in both residential and commercial real estate projects. The combination of affordability, convenient connectivity, and a high quality of life makes the west an attractive option for homebuyers, investors, and expatriates alike. With urban decentralization trends gaining momentum, western HCMC is on track to become one of the city’s most dynamic and sought-after regions in the coming years.