The price of apartments in Ho Chi Minh City has continuously peaked in the past 10 years, currently reaching an average of nearly 76 million VND/m2.
The market report for the first quarter of 2021 of Cushman & Wakefield Vietnam has shown that the apartment market price level continues to peak.
The total supply of apartments in Ho Chi Minh City since 2004 has reached 315,000 units. In which, new supply in District 1 reached 2,500 units, coming from four projects Vinhomes Grand Park (Beverly The Resort) – Thu Duc City, Akari City Phase 2 – Binh Tan District, Masteri Center Point – Thu Duc City , Picity High Park – District 12. New projects are all in the mid-end segment and have an average selling price of 2,500 USD/m2 (equivalent to 57.1 million VND).
The average selling price of the whole market including all segments reached 3,300 USD/m2 (equivalent to 75.4 million VND), up 8% QoQ and 27% YoY. The selling price of apartments in the apartment market has continuously peaked in the past 10 years, mainly due to the increase in land prices in the context of limited land fund, increasing cost of construction materials and the market’s acceptance of many products in the Luxury segment. and Super Luxury drives the average price up accordingly.
Demand remained stable with 2,300 units sold in the first quarter of 2022, down 20% QoQ and 11% YoY. By the end of 2022, the apartment supply is forecast to reach 10,000 units, with the popularity of the large-scale complex urban model and the appearance of super luxury apartments on the market.
The situation of price increase is similar in the segment of townhouses in Ho Chi Minh City and neighboring provinces. According to Cushman & Wakefield Vietnam, in the past 3 years, the market has witnessed the shift of many real estate giants to the vicinity of Ho Chi Minh City with many townhouse projects being developed. The total supply of townhouses in Ho Chi Minh City and neighboring provinces including Binh Duong, Dong Nai, Long An, Ba Ria Vung Tau, since 2004 has reached 50,000 units. In which, the supply in HCMC accounted for 49% with 24,500 units. In the first quarter of 2022, there were 4 projects in Ho Chi Minh City. Ho Chi Minh City offers 200 apartments to the market including The Global City – TP. Thu Duc, Van Phuc City – City. Thu Duc, Senturia South Saigon – Binh Chanh District, Bao Tan Residence – District 12.
In particular, the selling price of land-based houses in Ho Chi Minh City is 3 times higher than the selling price in neighboring provinces. Specifically, the average selling price in Ho Chi Minh City reached 7,580 USD/m2 (equivalent to 173 million VND), up 30% QoQ and 42% YoY. The significant average price increase recorded in the quarter was mainly due to the record high selling prices of 2 projects in Thu Duc City and the new peak in the market price. The average selling price in neighboring provinces reached USD 2,630/m2 (equivalent to VND 60 million), up 6% QoQ and 46% YoY.
“Townhouses continue to be a popular segment with 300 units sold in Ho Chi Minh City. By the end of 2022, it is forecasted that the supply of townhouses in neighboring provinces will be more active than HCMC, in the context of this situation. The investment wave in non-CBD areas continues to heat up,” emphasized a representative of Cushman & Wakefield Vietnam.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
