A 50 percent increase has forced most developers to increase prices, as steel accounts for 15-20 percent of construction costs, Ngo Quang Phuc, CEO of housing company Phu Dong Group, said in an online forum.
Steel prices had seen a spike at the beginning of this year before falling in the last few weeks. Prices have nearly doubled this year to VND 25-26 million ($1,085-1,129) per ton.
Tran Khanh Quang, CEO of another housing firm, Viet An Hoa, said the cost of homes has increased by 5-15 percent.
But for apartments, most developers now have profit margins of 40-50 percent, or even 200-300 percent, and so rising steel prices don't necessarily affect the unit price, he said.
Those in the industry also said that price increases increase the burden on those who want to own affordable homes in big cities.
Phuc said it is no longer possible for developers to offer an apartment in HCMC for VND 2 billion ($88,000) or less.
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