Ho Chi Minh CityIn 2016, Grade C (affordable) apartments were only VND 18 million per sqm, but now the most “soft” new project has reached the milestone of VND 50 million per sqm.
Notes from VnExpress In the past 3 months, it has been proven that many suburban apartment projects in the east, south and west city axis of Ho Chi Minh City are selling at prices close to the threshold of 46-50 million VND per square meter, respectively.
In the old Thu Duc district, now the town of Thu Duc, in the East Saigon area, the Fiato Premier apartment project on To Ngoc Van street was offered for sale at a market price of 49 million VND per square meter, excluding taxes and fees. Similarly, in the Binh Tan district, in the western part of Ho Chi Minh City, the Akari City project was offered by brokers at a price of 47-49 million VND per square meter.
As for South Ho Chi Minh City, the West Gate Park project, in Binh Chanh district, has its latest updated selling price this month of 42 million VND per square meter, if you add the value added tax, the house price here in this district is up to 46 million VND.copper.
These new projects are all located in a suburban district of Ho Chi Minh City, which was once the capital of affordable and affordable housing. However, the new price level is currently pushing the total value of homes past the threshold of 2 billion VND per unit, which is difficult for middle-income people to reach.
In late 2015 and early 2016, namely at the beginning of the post-crisis real estate market recovery, the price of Grade C apartments (affordable segment, also known as low-cost housing) was only 18 million. VND per square meter. Then, in the 2017-2020 period, affordable apartments were raised by many survey units to a new price level of 25-30 million VND per square meter. By 2021, low-cost apartments will be positioned as a product group of around 35 million VND per square meter.
However, this adjustment has not been able to keep pace with the growth in house prices. With the launch of a new apartment project to the market at the most competitive prices in Ho Chi Minh City, a product line of 46-50 million VND per m2 has emerged, showing that in the last 7 years, from the milestone 2016 to the present, apartments have high prices Most affordable prices in the market has increased 2.8 times.
Since the start of the first quarter, DKRA Vietnam has made a forecast by 2022 that Grade C apartments (affordable and low-cost housing) previously classified under VND 35 million per m2 may no longer be relevant to the context. Minh City Market. Due to the lack of project supply while the demand for housing is still very high, plus the legal preparation of long-term housing projects, Grade C house prices have to be raised.
Even in Ho Chi Minh City’s housing market report for the fourth quarter of 2021, Savills Vietnam also confirmed that Grade C apartments and projects in the city have sold up to 56.5 million VND per square meter, up 27% YoY.
The real estate market summary report from the Ho Chi Minh City Real Estate Association (HoREA) also said that affordable apartments by the old price standard (under VND 25 million per m2) had disappeared from the market in 2021. Compared to high-class apartment price groups according to the old standards promulgated by the association (more than 40 million VND per square meter), today new suburban apartment projects for sale exceed the general price threshold for luxury residences.
HoREA also warns that the mismatch of housing supply and demand (the excess of expensive houses and the shortage of cheap houses) will cause the real estate market to develop unequally in 2022. Due to the scarcity of new housing projects, apartment prices in Ho Chi Minh City have increased in price due to the short project preparation time. long and monopolistic competition.