House prices in Ho Chi Minh City hit a new peak

Report market House of Cushman & Wakefield showed that, in the first quarter of this year, the apartment market price level continued to peak.

Specifically, the average selling price of the entire apartment market including all segments reached 3,300 USD/m2 (equivalent to 75.4 million VND), up 8% QoQ and skyrocketing 27% YoY.

House selling prices increased, but demand remained stable with 2,300 units sold in the first quarter of 2022, down 20% QoQ and 11% YoY.

The reason for the increase in the price of apartment buildings in Ho Chi Minh City is due to the increase in land prices, the escalating cost of construction materials, and the long time to complete legal procedures. In addition, the market received many products in the luxury and even super-luxury segments, which pushed the average house price of the whole market to peak. In addition to the quarterly and yearly escalation in house prices, the asking price of apartments in the HCMC market has also continuously peaked in the past 10 years.

House prices in Ho Chi Minh City increased sharply.

Cushman & Wakefield forecast that by the end of this year, the supply of apartments in Ho Chi Minh City will probably reach 10,000 units, mainly from the model of large-scale complex urban areas. Super luxury apartments will continue to appear. The total supply of apartments in Ho Chi Minh City since 2004 has reached 315,000 units. Housing supply in Ho Chi Minh City mainly comes from suburban areas, launched projects are set at new price levels.

Price increases also occurred in the segment of townhouses in Ho Chi Minh City and neighboring provinces.

The report also said that in the first 3 months of the year, the average selling price of a townhouse in Ho Chi Minh City was $7,580 per square meter (equivalent to VND 173 million), up 30% QoQ and 42% YoY. The average price increase recorded in this quarter was due to the record high selling prices of 2 projects in Thu Duc City setting new peaks in the whole city.

As for the ready-built housing market in the provinces adjacent to Ho Chi Minh City, the average asking price of townhouses reached US$2,630 per square meter (equivalent to VND60 million), up 6% QoQ and 46% YoY. Thus, the average asking price of a townhouse in Ho Chi Minh City is 3 times higher than the selling price in neighboring provinces.

The total supply of land-based houses 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 Ho Chi Minh City accounted for 49% with 24,500 units.

According to Cushman & Wakefield, by the end of 2022, the supply of land-based houses in neighboring provinces will increase more strongly than Ho Chi Minh City. This is the trend of shifting investment to neighboring satellite cities, following traffic infrastructure works.

Gia Hung