Apartments priced below 45 million VND/m2 disappeared on the Ho Chi Minh City market
At the real estate market report in the first quarter of 2022, Mr. Dinh Minh Tuan, Southern Regional Director of Batdongsan.com.vn said, while the demand for real estate search in Hanoi is still quite stable. , the level of interest in HCMC decreased by 8%. However, in terms of type, interest in rental properties increased by 5% while for sale properties decreased by 12%.
Regarding the apartment segment in terms of rental type, Mr. Tuan said, apartment rental increased by 17%, rental of motels and offices had a certain growth when students returned to Ho Chi Minh City to study increased. high; The demand to pick up foreigners and foreign professionals has increased again since the flights were opened, prompting this audience to look for types of apartments that can be lived in right away.
As for the type of apartment sale, the level of interest dropped sharply by 16% over the same period. Mr. Tuan said that in the first quarter, the supply to the market decreased sharply compared to the previous quarters. Supply is concentrated mainly in the East market and a few new projects launched in the West region. Projects open for sale with high prices.
“In the period of 2019, the Ho Chi Minh City market will disappear, projects with prices below 20 million VND/m2, in the period 2020-2021, projects under 35 million VND/m2 will disappear, by the first quarter of 2022, projects will disappear. projects under 45 million VND/m2″, Mr. Tuan said.
This position also said that the investment cash flow has moved. Previously, investors looked for primary projects, now turn to secondary projects and look for rental business opportunities. When house prices are high and the supply outside the market is limited, the search demand has poured into the old apartments that have been handed over before.
According to a report by Batdongsan.com.vn, in the top 10 selling apartments that are most interested, HCMC apartments are concentrated in the Ho Chi Minh City area. Thu Duc
“Despite the low supply, the search level decreased by 16%, but the price still increased steadily, the affordable, mid-end, high-end, and super-luxury segments grew by 3-5%. The rental type grew by 3-5%, the rental rate inched up to 4-5%. The apartment rental segment is gradually coming back,” said Mr. Tuan.
As for the street rental segment, there has been no sign of increasing again. In the past, F&B units often chose the main street for both branding and sales, this business model has now moved to the suburbs with lower rental prices with the most searched price range from 30-80. million dong. The post-pandemic business model is implemented by businesses and suppliers in a combination of online and offline. Therefore, the demand for real estate rental in the central area gradually decreased, instead the suburban area became “hot” more than ever.
Along with that, the business on the “golden” routes in District 1 (HCMC) almost depends on tourists both domestic and foreign. Although since March 16, Ho Chi Minh City has reopened to international routes, but the main markets such as Europe, China or Russia have not yet returned. The reason is that China is applying the Zero Covid policy; Europe is affected by the Russia-Ukraine conflict. Therefore, Mr. Tuan believes that it will take at least 6-12 months for this market to fully recover.
Commenting on the land plot market, Mr. Tuan said: “Ho Chi Minh City and the southern provinces continue to be vibrant, with the growth rate of 10-25% in Cu Chi and Binh Chanh areas. However, District 9, known as the “king of land”, recorded a 2% decrease in search volume. Capital flow of 2-5 billion withdraws from the land market in District 9 to move to markets 40-50 km away from the city.
According to this position, in the period of 2020-2021, the level of search in areas around Ho Chi Minh City has increased. By 2022, the heat of the market will spread to 50-60 Km. Provinces like Binh Duong and Long An have a higher level of search. Meanwhile, the level of search in the center of Ho Chi Minh City decreased by 15%, Dong Nai decreased by 13%, Ba Ria – Vung Tau decreased by 16%. This shows that, with the trend of shifting from the core of Ho Chi Minh City to the Southeast region, many investors are looking for new opportunities in Binh Phuoc, Long An, the suburbs 60-120 km away from the city center. Ho Chi Minh City.
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