The race “for market share” of the real estate market in Ho Chi Minh City

According to experts’ forecasts, in 2022, the prospect of real estate supply in Ho Chi Minh City will be brighter. With the apartment segment, there will be about 25,000-30,000 new units opened for sale in the year. Although this figure is modest compared to the neighboring province’s real estate market, it shows that the opportunity to own real estate in a large urban area like Ho Chi Minh City is “wider” for homebuyers, in the context of supply. quiet the whole time.

Recently, the Group Nam Long (NLG) and two Japanese partners, Hankyu Hanshin Properties Corp and Nishi Nippon Railroad, officially started the construction of the Flora Panorama isolated apartment complex in phase 3 of the 26-hectare Mizuki Park integrated urban area in Binh Chanh, Ho Chi Minh City. This block officially provides the Ho Chi Minh City real estate market with more than 400 apartments located on the inner commercial boulevard, adjacent to The Mizuki riverside million-dollar villa complex.

This is also a unit, recently continuously offering new supply to the market. In the middle of March 2021, this group officially opened the sale of phase 2 with 500 isolated apartments of the Akari City project, bringing in sales of more than 1,400 billion VND for the investor. This is the largest-scale project being implemented in the West Saigon market, with a total of 5,000 apartments in an 8.5 ha multi-utility urban complex, divided into 3 development phases.

Also in the South area, the big man Novaland also officially launched the Grand Sentosa (Nha Be) project. This group became the project developer in March 2022. The project is a complex of commerce, services and high-class housing with an area of ​​8.3 hectares. It is expected to provide more than 3,000 apartments and commercial townhouses to the market.

The race

In addition to provincial real estate, at the beginning of 2022, Ho Chi Minh City real estate witnessed a new supply in the market

The “race” for market share also began to heat up “gradually” in the East Saigon area, when a number of apartment projects increased communication to the market at this stage. For example, in Thu Duc City, the Fiato Premier apartment project located on the front of To Ngoc Van street, Tam Phu ward is “in the market” with more than 400 high-end investment products. This is the first apartment product line developed by Thang Long Real, so it is invested “strongly” in technology, utilities and increasing green space. The project is located right inside the Thang Long Home – Hung Phu urban area with the pre-existing townhouses and villas; owns a line of apartments, including many diverse types such as 2 bedrooms, 3 bedrooms, duplex apartments, commercial and service apartments, penthouses. It is known that the project is offering the market at a price of around 50 million VND/m2, which is more comfortable than the general price level in Thu Duc City at this time.

In the same area, Masteria Home also launched The Global City project with an area of ​​​​up to 117 hectares. This project includes townhouse products; Villa; luxury apartments; shophouse and commercial services. This project is expected to provide 1,800 townhouses and 10,000 high-rise apartments. In phase 1, the project will provide the market with 100 shophouses with a price range of 350 million/m2.

According to Cho Tot Nha, March 2022 witnessed a parallel increase in demand for real estate projects in both Thu Duc City (HCMC) and Di An City (Binh Duong). In the same session of buyers when looking for apartments at a relatively high level – about 20% compared to the average of 10% in neighboring areas. This means that about 20% of buyers tend to both look for apartments in Di An City and at the same time are interested in projects in Thu Duc City. So to see, the real estate heat is not only concentrated in the neighboring province of Saigon, but hot in the real estate market in Ho Chi Minh City.

In fact, real estate in Thu Duc City recently witnessed many exciting waves. The market has increased in both quantity and price, especially since Thu Duc City was officially established until now.

According to Dr. Su Ngoc Khuong, Senior Director of Savills Vietnam, the Thu Duc area has continuously appeared expensive apartment projects, priced at more than one hundred million dong/m2 with rapid liquidity. Basically, the supply is not much, while the demand of the people is real, so it is not surprising that the appearance of hundreds of million apartment projects in this area.

The race

The heat still belongs to mid-end apartment projects

This expert said that housing and apartment products in the Thu Duc city area recorded much higher prices than before due to many factors.

The first is the information about the establishment of “city within the city”, which leads to an increase in the level of investment and budget in technical, social and transportation infrastructure.

Second, the supply of apartments in HCMC in general and Thu Duc in particular is very limited. In addition, the area close to the central area of ​​District 1 with the old District 2, Phu Nhuan, Binh Thanh, and District 3, the land fund is increasingly limited, while the area of ​​District 9 and Thu Duc is in the adjacent area. flanking districts 1 and 3 benefit from these expectations. Therefore, real estate investors have grasped the favorable conditions of land fund, planning, and people’s needs to design projects in accordance with the above criteria and expectations of the market. This is not surprising given the change in pricing strategies of investors compared to the past.

“For those who buy to live, this is a good opportunity for them to own a home in the context that the supply in the market is not much. Although the epidemic situation is still a challenge, affecting the growth rate of the economy. However, like other markets in the world, the residential real estate market is forecasted to always be a hot spot. People’s demand is always high in big cities like Hanoi and Ho Chi Minh City. Medium to mid-high value products are always representative of the urban real estate market.Demand will remain high and unchanged.Supply of housing projects will continue to be limited due to The epidemic affects the project implementation progress, the rising cost of land pushes the price level up, “said Dr. Su Ngoc Khuong.

The supply of real estate to the Ho Chi Minh City market at this time, according to some industry experts, is a huge advantage in terms of demand, in the context of scarcity of supply. However, it is forecasted that by the second quarter of 2022, the race for supply will be stronger, when a number of new projects continue to release goods. From there, the race “for market share” can be stronger; Price competition is expected to become more intense.

According to Ha Vy

Business & Marketing

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