Vietnam’s housing market is facing pressure with soaring prices, making Ho Chi Minh City and Hanoi, the country’s two business and financial hubs, among Asia’s least affordable cities for homebuyers, according to a report by property consultant CBRE.

Vietnam’s consumer price index (CPI) in the year’s first quarter edged up around 4.3% year-on-year, showed official data.

Vietnam’s national construction cost index (CCI) last year increased by 4.92% against that of 2021 and 11.01% from 2020, the Ministry of Construction has announced.

Vietnamese developers’ contracted sales are forecast to increase by 20%-30% next year thanks to an improving operating environment, with rising vaccination rates and continued easing of mobility restrictions likely to spearhead the economic recovery, according to Fitch Ratings.

Homebase, a Vietnamese proptech startup, has raised US$30 million of funding from many world leading adventurous funds including Y Combinator, Partech Partners, Goodwater Capital, Ace and Company and Emles Advisors.

Investing in apartments to capture short-term gains has not been attractive to investors due to high prices caused by limited supply, according to experts.

The prices of properties with land in Ho Chi Minh City increased by 15% in the third quarter from the same period of last year due to lack of new supply, according to a report by property consultancy JLL.