Of the 6,700 apartments and houses that entered the market, the number of affordable segment accounted for only 163 or 2.5 percent, and represented a fall of 98.5 percent year-on-year, according to the report by the Ho Chi Minh City Real Estate Association (HoREA).

The premium segment accounted for 72.5 percent. The affordable segment refers to housing units priced at VND20 million ($861) per square meter or lower.

The pandemic has delayed launches and caused 923 property companies across the country to dissolve in the first eight months, a 136 percent increase year-on-year, it said.

"The pandemic has caused severe impacts on the economy and real estate; it intensified the difficulties that have existed in the industry since 2018."

HCMC’s plan to build social housing to meet demand from low-income people is also falling behind. It had hoped to build 20,000 units in 2016-2020, but HoREA forecast it would only meet 89.7 percent of the target.

HoREA and independent analysts have repeatedly warned about the declining supply in affordable housing in HCMC and in Hanoi amid the rising population in the country’s two largest cities as developers focus on the mid-priced and premium segments for higher profits.