Apartment prices in Ho Chi Minh City’s inner core areas remain elevated with no signs of decline. Developers are therefore increasingly looking for cheaper land in satellite areas in HCMC’s suburbs to develop residential real estate and keep selling prices affordable. Areas with good transport connectivity and existing amenities with relatively cheaper land values are highly sort after by residential developers.

Local and foreign home buyers alike are now much more careful in selecting new launch projects and focusing on those with clear legal status, genuine residential demand and sustainable income potential. This is to ensure liquidity in the secondary market and facilitate extended holding periods.

Market statistics have shown that the higher prices climb upwards of 80 million vnd/m2, sale rate tends to decrease. Obviously, many middle-income households are being priced out of projects that are in excess of 80 million vnd/m2.

To ease the shortage of suitable housing and the above-mentioned price pressures in HCMC inner core areas, the city’s planners are pushing for urban decentralization and multi-center development (especially after the creation of a mega-city by merging HCMC – Binh Duong – Vung Tau) to usher in a more sustainable growth phase for its residential market.

This urban planning has fostered the emergence of satellite areas in HCMC’s residential market. Long-term prospects of these satellite areas are more exciting post-merger, accelerating residential relocation outwards from HCMC’s inner core. Unlike the low supply of new launches within HCMC’s inner core, satellite localities are bringing a substantial volume of housing to the market at more accessible price points.

Unsurprisingly, the administrative boundary of former Binh Duong Province dominates newly launched apartments inventory, and have a strong track record of showing healthy absorption rates and stable liquidity. Moreover, the significant price gap with central HCMC, whereby land in and around the city center is roughly twice as expensive; Apartments cost about 1.6 to 2.4 times more.

The more affordable options and broader choices make the satellite areas ringing HCMC’s core particularly attractive to first-time home buyers, middle-income households seeking larger living spaces and real estate investors seeking to preserve their wealth.

One such satellite area / urban center is the current Lai Thieu Ward that is located in the administrative zone of former Thuan An City. Lai Thieu is a well-established urban area with years of growth. It has shopping malls, hospitals, schools, industrial parks, recreation amenities, and residential enclaves along National Highway 13.

In it lies SkySOLIS, a premium high-rise project by a foreign developer. At an indicative average selling price of VND 55 million/m2 (excluding VAT), the estimated price quantum is approximately VND 1.87 to 1.95 billion for a studio, VND 3.71 to 4.42 billion for a 2-bedroom compact unit, VND 3.84 to 5.19 billion for a 2-bedroom standard unit, VND 5.65 to 6.90 billion for a 3-bedroom unit, and about VND 7.25 billion for a Sky Villa.

Project Overview

SkySOLIS unit distribution breakdown

Unit distribution: Of the 1,101 products, the largest single category is the 2-bedroom standard layout with 410 units (37.2%), and together with 139 compact 2-bedroom units, two-bedroom homes account for 549 units, or 49.9% of the entire project.

Studio apartments account for only 68 units (6.2%). The relatively limited supply of studio shows that the developer has conceptualised and designed SkySOLIS for home occupiers with real demand.

For the larger unit types, there are 209 standard 3-bedroom units and 33 exclusive Sky Villas, representing 22% of total supply. These products target larger households and buyers seeking more generous living space.

1-bedroom mixed-use units account for 114 units (10.4%), dual-key for 108 units (9.8%), and shophouses for 20 units (1.8%). Overall, the unit mix is rather “family-oriented”, with nearly half of all units in SkySOLIS focused on two-bedroom layouts. Adding up with the 3-bedrooms units, 71.8% are 67.4 square meters and above, a decent amount of living space as compared to the typical apartment sizes in the vicinity.

Indicative phase 1 launch prices: SkySOLIS has prominent frontage on National Highway 13 and sits within a mature neighbourhood. Internal roads connect the project with nearby amenities such as Lotte Mart Binh Duong and Becamex International Hospital, both within short walking distance. Its selling price should therefore be assessed in the context of this established location and connectivity.

Indicative quantum price of different apartment types at SkySOLIS:

The indicative quantum is most accessible for studio units, which start from about VND 1.87 billion. This product type may appeal to singles, young couples, first-time home buyers, professionals working in nearby industrial parks and investors seeking a lower initial capital outlay.

Two-bedroom units form the core of the project and will compete directly with larger resale apartments that have already been handed over and are available for immediate occupation or rental. SkySOLIS has so far been able to justify its new-launch premium through design quality, amenities, payment terms and potential upsides.

SkySOLIS floorplan analysis

Apartment units at SkySOLIS are designed to optimise usable space through efficient regular-shaped layouts.

Studio

With GFA ranging from 34.0 to 35.5 m2, the studios provide slightly more built-in space than many similar “shoe-box” products in the market. The linear layout improves air flow and makes furniture placement more intuitive, helping reduce the sense of claustrophobia that small apartments can create.

The kitchen, television console and other built in carpentry can be arranged neatly along one wall, leaving more open floor area for movement. The absence of a balcony also increases the amount of usable internal space.

This product is well adapted for young professionals with mobile, socially active lifestyles who spend a significant amount of time outside the home.

2-bedroom units

The 2-bedroom layouts range from 67.4 to 94.3 m2 across the 1 or 2 bathroom configurations. Their generally squarish design shape supports efficient use of space. Separating the bedrooms from the living room improves privacy, while the balcony and yard support natural light and cross-ventilation.

3-bedrooms units

The 3-bedroom units range from 102.8 to 125.4 m2 and are planned for larger families. More space is allocated to the kitchen and dining areas, while the use of the dumbbell layout continue to ensure privacy despite more people living in the same apartment unit.

Recent new launch projects price comparisons

For a project developed by a foreign developer listed on the stock exchange in its home country, SkySOLIS is surprisingly very competitively priced to other local new launch projects. As SkySOLIS is a premium segment project, we have identified only Bcons NewSky and Setia Edenia as close comparables in terms of location, product segment, and recency.

Although not directly comparable, we have included Happy One Mori to provide a bigger picture of the market by comparing primary prices of the mid-range and premium new launch segments.

Recent new project launch price benchmarks and comparison in Lai Thieu Ward:

*Note: Table figures are unit rates based on apartment Gross Floor Area and are stated in million VND/m2.

Bcons NewSky has a median per square meter price of approximately VND 52.28 million/m2 and Setia Edenia approximately VND 51.44 million/m2. At VND 55 million/m2 on average, SkySOLIS is about 5.2% more expensive than Bcons NewSky and 6.9% than Setia Edenia. These price differences are relatively marginal increase for launches nearly 9 months apart.

Compared with Happy One Mori's unit price median of approximately VND 46.55 million/m2, SkySOLIS is approximately 18.2% more expensive. Indicating a slight price premium for a premium apartment versus a mid-range one.

This pricing suggests a relatively conservative phase 1 pricing strategy by the developer, rather than to attempt to push the boundaries by setting a record price ceiling. This approach may also reflect the developer's intention to build market acceptance for its very first project in Vietnam.

Accordingly, phase 1 buyers of SkySOLIS may potentially get to enjoy solid capital appreciation if prices for subsequent sale phases of SkySOLIS are higher as the developer grow in confidence as they have less selling pressure from lower available product inventory.

Price comparisons with new launch projects fronting National Highway 13:

*Note: Table figures are unit rates based on apartment Gross Floor Area and are stated in million VND/m2.

Compared with nearby projects on National Highway 13, SkySOLIS remains within more or less the same broad pricing band. Its average price is about 0.4% below Khai Hoan Imperial’s median price and 3.3% below that of Lusso d’Arte, that despite being a later launch. Both projects that are within the same vicinity as SkySOLIS.

Compared with The Emerald Boulevard's median unit price of VND 67.2 million/m2, SkySOLIS is approximately 18.2% cheaper. This is significant, given that The Emerald Boulevard is only about a 15-minutes car ride from SkySOLIS, and The Emerald Boulevard is of a similar product standard as SkySOLIS.

Once again, what stands out is SkySOLIS developer’s conservative pricing for its initial sale phase.

Price comparison with nearby resale apartments

Reviewing nearby completed projects, a noticeable pattern is that high-rise developments with direct National Highway 13 frontage tend to maintain stronger resale values than projects located further from the corridor. Older projects such as The Rivana and The Emerald Golf View still outperform newer alternatives not having a National Highway 13 frontage.

This indicates the price premium that buyers are willing to accept for project visibility, accessibility and direct access to a major roadway.

Foreign-developed projects also appear to command stronger resale values in some cases. The Habitat command a relatively strong resale price despite being an older project.

These trends all bodes well for SkySOLIS because it combines National Highway 13 frontage with an experienced foreign developer.

SkySOLIS’s indicative launch price of approximately 39.1% to 84.6% above resale market prices together with the other new launch projects with the same price band, shows clearly that there is a market shift in Lai Thieu Ward and along National Highway 13 from a market previously dominated by mid-range apartments to one where buyers willingly accept paying more for premium apartments that reflect the location’s potential and better-build quality.

Resale price outlook for SkySOLIS

The table below tracks the performance of property values from initial launch to current price benchmarks. It is not a guarantee of future returns but a good reference point to predict SkySOLIS price performance trajectory.

All three projects in the table above indicate an increase in value annually. But the results demonstrate that entry price materially affects home buyer's eventual return as shown by A&T Sky Garden that outperform the other projects by a margin.

This clearly indicates that conservatively priced apartments have a bigger potential to enjoy strong capital appreciation, and SkySOLIS definitely falls into this category.

Rental potential of SkySOLIS

The figures in the table below are approximate rental prices for basic-furnished units based on comparable completed projects. Gross rental yield is calculated as total annual rent divided by the acquisition (purchase) price of the same unit. Other costs such as renovation/furnishing, management fee, tax and financing expenses are not included in the calculation.

In-line with typical rental trends, 1-bedroom apartments at The Rivana and The Emerald Golf View have the best rental yield versus the 2-bedroom and 3-bedroom apartments. And the bigger the unit type, the lower the rental yields tend to be.

What is surprising is that 3-bedroom apartments at Eco Xuan (Block C) enjoys a slightly better rental yield over the smaller unit types. This can only be inferred by the large pool of family tenants that require larger living spaces.

Although handed-over in more or less the same period, The Emerald Golf View commands a higher gross rent versus The Rivana, testimony to tenant preference for better-quality housing. Also, since both The Rivana and The Emerald Golf View rents at a higher price over Eco Xuan (Block C), could be partly a sign for tenant preference for a main road frontage.

SkySOLIS may potentially benefit from similar rental trends upon handover because it is in the same neighbourhood as Eco Xuan and also share similar location traits as The Rivana and The Emerald Boulevard.

Understanding SkySOLIS investment upsides

Established satellite urban area

In close proximity to employment opportunities afforded by the large number of industrial parks, the administrative area of former Thuan An City continues to attract inbound population migration. It has years of urban development leading to what it is today.

SkySOLIS is also conveniently located within a mature housing estate with an established community. As more residential projects cluster together here, it offers efficiencies in urban development and support for prices, acting as a catalyst for urban rejuvenation and fast-tracking new amenities/infrastructure.

More projects in the pipeline to drive primary prices up further

With more projects expected to be launched all along National Highway 13, as HCMC’s planners are advocating urban growth corridors along key infrastructure routes, housing demand from home buyers are expected to grow in tandem with housing supply.

Each subsequent project launch in a busy urban cluster often trends higher in price as developers adjust to rising land and development cost, whist contending with fiercer competition.

Benefits from future transit-oriented-development

Upon the imminent completion of upgrading works on National Highway 13 and the planned development of the Thu Dau Mot – Ho Chi Minh City Metro line (which passes through Lai Thieu Ward hugging National Highway 13), SkySOLIS will be connected directly to HCMC’s inner core areas.

This will increase the desirability of its location and encourage higher population numbers to settle down in the vicinity, hence driving up demand for quality housing.

Conclusion

SkySOLIS is not just another premium residential high-rise project in HCMC. It represents the very vision of HCMC’s future – where satellite urban areas are integrated with transit-orientated-development, and real estate development follows main infrastructure routes such as the metro lines and arterial highways.

As HCMC continues to decentralise from its inner core and satellite urban centers rise in prominence, projects like SkySOLIS will define what future premium city living will look like. Importantly, the development fundamentals of SkySOLIS ticks all the boxes of a sustainable and successful residential real estate development.