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“Rare, hard to find” apartments under 2 billion in Ho Chi Minh City

Apartment Condominiums were the segment with the highest number of sales in the first quarter of this year in Ho Chi Minh City, helping to supplement housing supply. However, compared to the last quarter of last year, the number of new apartments is only half. The narrow supply of apartments for sale has pushed apartment prices to continue increasing, putting pressure on the market in the low-priced housing segment.

According to data from Savills, in the first quarter, Ho Chi Minh City had no new projects but there were more than 2,100 units launched for sale from the next stages of 6 existing projects, down more than 60% quarter-on-quarter. Meanwhile, up to 20 projects are being paused to adjust prices for the next sale.

Ms. Vo Thi Khanh Trang – Deputy Director of Research, Savills Vietnam said: “For projects that are open for sale, there is a growth rate of about 3-5% compared to the previous quarter or almost no price change. While new opening stages in the same project have a price increase of 5-10% compared to the previous level.”

Currently, the average selling price of apartments in Ho Chi Minh City is about 75 million VND/m2, up 27% year on year. The reason for the increase in apartment prices is that the market has received many products in the luxury segment, even super luxury, which has pushed the average house price of the whole market to peak in the past 10 years.

In addition, the long time to complete legal procedures and the escalating costs of the project are the main reasons why the investor adjusts the selling price.

“Price has a certain fluctuation and the focus is on inner-city projects, mainly the land fund is also not much. The second is that the price of land has increased too high. The third is that construction costs have increased significantly. , especially in the last two years.

We recognize that the price of apartments for sale in 2022 will have a remarkable growth,” said Ms. Bui Nguyen Huyen Trang – General Director of Cushman & Wakefield Vietnam.

  Rare, difficult to find apartments under 2 billion in Ho Chi Minh City - Photo 1.

The average selling price of an apartment in Ho Chi Minh City is about 75 million VND/m2. Illustration.

According to research units, Grade C apartments (affordable segment) and Grade B apartments (mid-end) are closing the gap not only in terms of quality and service, but also in terms of price. This makes it difficult for apartments under 2 billion VND to appear on the market. Therefore, in order to compete with purchasing power and reduce selling price pressure, many investors are forced to increase sales policies.

“For example, they offer discounts on the value of the product or offer sales programs such as increasing the payment period, making the payment interval.

In addition, the cooperation between the investor and the bank has ensured a certain amount of loan, to ensure that buyers only give up a small market share and then receive support from the bank to pay in the near future. Ms. Vo Thi Khanh Trang – Deputy Director of Research, Savills Vietnam said.

Savills also forecast that by the end of this year, the number of new apartments for sale in Ho Chi Minh City will reach 22,700 units. The rising price level causes demand to gradually move away from the central area with improved infrastructure and more affordable prices. This trend is increasingly evident in the context of people’s income decline due to the impact of the pandemic.

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