The advantage of the new project in the real estate market of Ho Chi Minh City in the context of “trickle” supply
Dr. Su Ngoc Khuong, Senior Director of Savills Vietnam once shared that the demand for affordable housing in urban areas such as Ho Chi Minh City and Hanoi is still great. In the context that the supply continues to drip and the selling price is constantly increasing, projects that meet real demand will be sought.
Sharing the same view, Ms. Duong Thuy Dung, Senior Director of CBRE Vietnam, said that mid-range apartments will be the leading segment of the market. In the context that the supply of apartments in Ho Chi Minh City is increasingly scarce, the projects coming to the market at this time are considered to be a great advantage in terms of purchasing power, liquidity, price… “The mid-range apartment segment in the cities Large markets will continue to attract great attention due to very high demand for housing,” emphasized Ms. Dung.
However, undeniably, legal problems, land fund … have caused the supply of apartments in Ho Chi Minh City to decrease continuously over the years. At the end of 2021, the supply of apartments in Ho Chi Minh City has recovered more than before, in the context of investors releasing goods after a long time of the epidemic. However, the number of new supply is still quite modest compared to the period 2015-2018, and compared with the neighboring provincial market.
Apartment projects to the market in Ho Chi Minh City are considered an advantage in the context of new “trickle” supply.
Records show that, currently in Thu Duc City (HCMC) there is a “new” project called Fiato Premier with a scale of more than 1.6 hectares on the front of To Ngoc Van Street, Tam Phu Ward of Hung Phu Invest Investor. , developed by Thang Long Real Group. This is also a “rare” primary project in this area and in Ho Chi Minh City introduced to the market after Tet. It is known that the project has a price of around 50 million VND/m2, which is the “hard to find, hard to find” primary price in Thu Duc City at this time.
According to the representative of the developer, the project has a scale of more than 400 apartments, including various types such as 2 bedrooms, 3 bedrooms, duplex apartments, commercial service apartments, penthouses. In the context of the complicated development of the Covid-19 epidemic, to support homebuyers, businesses have issued a loan policy of up to 70% of the apartment value, a grace period of 18 months and an interest rate of 0%; Free management for the first year when receiving the apartment handover.
In the West Saigon area, recently Nam Long Group organized the sale of phase 2 of Flora isolated apartment product line under Akari City project, frontage of Vo Van Kiet Boulevard, Binh Tan district. Records show that, on the day of opening for sale, the number of customers interested in “dropping money” is quite good. This is also considered a rare next phase project in the West Saigon area appearing in early 2022. It is known that the project has a price of 2.7 billion VND / 2-bedroom apartment, customers only need to pay 50% of the price. Contract value within 27 to 30 months of construction until the house is handed over. Thus, the buyer only needs to pay about 1.4 billion dong within 30 months. This, according to the investor, will reduce a lot of pressure for payment. Those are also important factors for families wishing to buy a house to have time to arrange and balance financial resources.
As far as I know, these are mid-range projects that are still in the price range of around 50 million VND/m2 – a price that is almost scarce in the Ho Chi Minh City apartment market at the moment. Meanwhile, most of the projects expected to be introduced to the real estate market in Ho Chi Minh City this year are in the Grade A segment with expensive prices, especially in the Thu Duc City area. There are apartment projects that are just “in the market” but have shocking prices, up to 150-200 million VND/m2, while in the real estate segment the price is up to 350-400 million VND. VND/m2. According to experts, projects that are still affordable in big cities like Hanoi or Ho Chi Minh City always have their own appeal, hitting the real needs of the majority. While in terms of investment needs, these are also good profitable projects because they are easy to sell and easy to buy.
So to see, in the context of “trickle-down” supply, some projects starting at the beginning of the year are considered advantageous. According to Ms. Duong Thuy Dung, the epidemic is basically under control, when the investor starts a new project and has a source of goods to the market, he will be able to anticipate the purchasing power that has been “compressed” for a long time due to the epidemic. and scarce supply.
It is forecasted that the supply of real estate in the Ho Chi Minh City market will improve in 2022 but overall, this number will be difficult to return to the time 4-5 years ago. Mr. Vincent Nguyen, Director of Savills Housing Sales in Ho Chi Minh City, said that after a quiet year in 2021, the supply of apartments in HCMC is abundant in the housing segments. Healthy demand, driven by rising equity and lack of alternative investments, should support a rapid recovery in the housing market. However, in the next 1-2 years, the supply of apartments in HCMC is still not really abundant.
In the context of scarce supply, it is easy to see that the number of successful transactions in the apartment segment is quite positive. According to Savills, the demand for apartments in Ho Chi Minh City increased sharply, when the absorption rate reached 81%. Grade B led the transaction volume, accounting for 69% of the total transactions and the absorption rate was 90%. As of the fourth quarter of 2021, the transaction volume reached nearly 5,600 units, of which, Grade B (intermediate) accounted for 75% of total transactions and increased by 75% year-on-year. Transactions from new supply accounted for 94% of total transactions in Q4 with an absorption rate of 91%.
The latest report of DKRA Vietnam also shows that, in January and February 2022, the Ho Chi Minh City apartment market has 7 projects (1 new project and 6 projects in the next phase) providing 686 apartments to the market. schools, of which 479 units were sold. Looking at this data, it is easy to see that the supply is low, while the consumption is quite good.
Sharing earlier, Dr. Le Xuan Nghia said that in an environment of rising inflation, the level of recovery – fever of each segment is very different. With the apartment segment, last year recovered quite quickly, especially apartments in the mid-end segment. This segment has a fairly high success rate of transactions and a large percentage of end users. It is forecasted that this will be the most exciting segment in 2022. The price of this segment will also tend to increase strongly this year.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
