Demand for apartments in the city. Ho Chi Minh City increased sharply
The market report of February 2022, recently published by Batdongsan.com.vn, shows that the number of apartment listings for sale tends to decrease compared to the previous month, but the demand for this segment has increased sharply. in the context of the market facing many challenges from rising inflation.
Specifically, in February 2022, the number of apartments for sale in the city was stationary compared to the previous month, but the demand for this segment increased by 22%. Particularly in the mid-end apartment segment, buying demand increased by more than 23% compared to the first month of the year and the strongest increase was in the type of apartments priced from 40-50 million VND/m2 in Binh Tan, Binh Chanh and Ho Chi Minh City areas. . Thu Duc.
According to data from DKRA Vietnam, in the first two months of 2022, HCMC. Ho Chi Minh City and neighboring provinces have 10 new apartment projects for sale, providing 1,175 apartments. New supply is concentrated in Ho Chi Minh City. Ho Chi Minh City, accounting for 58% of total supply and 57% of new consumption. The number of units sold in the whole market reached 845 units, an increase of 28%, the consumption rate reached nearly 80% on new products.
Notably, most of the mid-end projects newly launched in the market with high absorption rates are concentrated in the western districts of Ho Chi Minh City, depending on the region, the supply of apartments in the area. The West is inferior to the East – South area while the population is large and the demand for housing is high. In 2021, the supply of apartments in the West area only accounts for 17%, compared to 20% of the South area and 58% of the East area, which is quite modest. But in terms of the proportion of mid-end projects, the West is gradually dominating thanks to the appearance of many new projects implemented in 2022 and is the area where the supply of mid-end apartments is recorded at the price of less than 50 million. VND/m2 is the most abundant in the city.
Savills Vietnam data shows that the primary price of Grade C apartments in Ho Chi Minh City has reached 60 million/m2, an increase of 27% over the same period. The price level of most projects increased by 5-8%, some projects increased by more than 11% compared to the fourth quarter of 2021. In particular, the price of luxury apartments in the East area reached 400 million VND/m2. While most of the projects being offered for sale in the Western area, although high-end, are only at 45-55 million VND/m2. This causes real demand for both real estate and investment to rush to the West.
According to Mr. Nguyen Hoang, R&D Director of DKRA Vietnam, the fear of inflation has made a part of investors choose real estate as a haven asset, especially the apartment segment. Ho Chi Minh City is in short supply of apartments, especially mid-range apartments because the number of new products is mainly concentrated in the segment of Grade A apartments. Affordable Grade C apartments are still scarce. In the context that house prices in Ho Chi Minh City are escalating, the trend of buying apartments is concentrated in places where projects with a price range of less than 60 million VND/m2 are deployed like the Western districts.
Although the selling price is on the rise, many homebuyers still choose apartment projects in the West area because of the financial suitability and long-term growth potential of this market. Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn shared, with real quality projects, the spiritual value or profitability is limitless. Once the land fund is scarce and the price of materials is increasing, there are not many quality projects on the market, so it is forecasted that in the next 2 years, even with money, it will not be easy to buy a spacious and comfortable living space. many values. At the financial range of about 2-3 billion VND, to find a spacious living space, currently only the West area has the supply to meet this requirement.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
