The Average Cost of Buying a Home in HCM City

How affordable is it to get into a home?

How much does it cost to buy a new home?

To find out, Choice collected data on home prices, closing costs, interest rates, and other expenses associated with buying residential real estate. We then settled on two figures. The first is total cost at the outset of homeownership, including expenses such as the down payment and closing costs. We combined that data with regional income data in 22 cities and districts in HCMC to measure affordability.

Learn how much it really costs to buy a new home in HCMC and factors that could impact the total cost of your potential abode.

Average Cost To Buy a New Home

The upfront cost to buy a new home in HCMC is includes the down payment, taxes, fee and the first monthly payment. We’ve included a national average in the data as a baseline, but these costs often depend on the city and region. For example, we caculated the upfront cost to buy a house with price 4,000,000,000 VND and down payment 30%, mortgage loan 70% with preferential interest rate 7.5%, maximum loan rate 70%, loan term 20 years (interest rate at Vietcombank in February 2023):

Price of house4,000,000,000
Down payment30%1,200,000,000
Principal and interest first monthInterest rate: 7.5%22,556,609
Taxes, fee100,000,000
Total  1,322,556,609

Down Payment

A down payment is the upfront amount you pay to buy a home. The down payment can be expressed as a percentage of the total home price, ranging from 0% to 30% or more.

A smaller down payment might seem appealing, but paying more initially reduces loan costs. While lenders may allow you to put as little as 3% down for a conventional mortgage, you can save by putting down at least 30% of a home’s cost, which we assumed for our calculations here. As you can see from the chart above, a down payment takes the lion’s share of the upfront costs, no matter where the buyer lives.

Taxes and fees

Typically, taxes and fees when buying real estate include:

  • Personal Income Tax: 2%
  • Registration fee: calculated according to the land price list issued by the People’s Committee of the province or centrally run city X the allocation coefficient
  • Notarization fee: The fee depends on the value of the transaction property


Your first monthly payment, including principal, interest, taxes, fee, and insurance, isn’t due alongside the other upfront payments. Instead, PITI is typically due on the first day of the second month after closing. Depending on when you close, your first payment could be due a little over a month after completing the purchase, or up to two months later. We’ve included it here as an upfront cost because it is an expense you will have to cover close on the heels of a significant outlay.

Other costs

A warranty may be included with your purchase, too. A new home may include a free builder’s warranty, which covers workmanship and materials for specific, permanent features of the house for a limited time. For example, the builder may warrant that the new home doesn’t have electrical or plumbing system defects for two years or structural defects for five years.

The other type of warranty is a home warranty or extended warranty. This isn’t a true warranty; it’s an optional service contract that might, under certain conditions, repair particular features of your home. These typically cost around $500 or more for a year’s coverage and are renewable. But they are also the subject of numerous consumer complaints. As the warranties usually don’t cover more expensive repairs, they often contain many exclusions and limitations, and could require a copay on covered items or service calls. You may find a home warranty is an unnecessary expense.

Homebuying-Cost Trends

According to the data we collected, buying a home will cost a bit less in January 2023 than it did in October 2022, when Choice last compiled the data. Our research showed that it costs 7.55% less to buy a home in January than it did in October, after figuring in the down payment, closing costs, and first monthly payment. While home prices started to decline in late 2022, as reflected in the lower average down payment costs, closing costs were up slightly (3.23%) in January 2023 compared to October 2022 as mortgage rates remained high.

Regional costs were down overall, too, even in the most expensive areas Choice examined. For example, average home prices in Los Angeles and San Diego fell by 5.5% between October 2022 and January 2023.

The Balance Home Affordability Index

While a general idea of how much an area costs to live in is useful knowledge, affordability is an important piece of the overall puzzle. One way to measure home affordability is to calculate the ratio of housing expense to income—the housing expense ratio. A housing expense ratio of less than 30% is considered affordable; a ratio greater than 30% is considered unaffordable.

Details of Ho Chi Minh City real estate price list 2023

When housing costs exceed 30% of income, households may respond by moving into more distant yet affordable neighborhoods or areas. Households may also start sharing housing with other households, or cutting spending on food, transportation, education, or health care.

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