JLL: HCMC apartment market has recovered with the highest selling price of 16,000 USD / m2

Minh Hoàng
April 13, 2021
The average apartment price in Ho Chi Minh City continues to be stable, but there appear to be projects with the highest expected price of 16,000 USD / m2. The supply and demand for apartments recovered strongly in the first quarter of the year. It is expected that the supply this year will be improved with new launches expected to reach 20,000-25,000 units.

– The first quarter report of JLL Vietnam said that the selling price of apartments in Ho Chi Minh City in the first quarter continued to be stable, with an average of 2,468 USD / m2 (59 million VND / m2). Supply mainly comes from mid-end segment in projects such as D’Lusso, ST Moritz, Eco Green Saigon. Notably in this quarter is the pre-opening event of Grand Marina project (District 1) of Masterise Group with expected price up to 16,000 USD / m2 (384 million VND / m2). This is the highest selling price on the market ever.

– Also according to JLL, the apartment supply in Ho Chi Minh City strongly recovered in the first quarter of the year, when 3,9000 units were officially launched for sale, an increase of 73% over the same period last year, mainly thanks to manual implementation New investment procedures have been issued. Notably, the new shopping cart recorded the market entry of 136 luxury apartments from the Cover Residences project. The mid-end segment continued to dominate the supply, contributing 80% of this quarter’s supply with Vinhomes Grand Park and Sunshine Diamond River projects.

– The vacant land fund in the center is increasingly limited while infrastructure in the gateway areas of Ho Chi Minh City has been completed, a driving force to attract more and more buyers to stay in the suburbs.

JLL: Thị trường căn hộ TP HCM phục hồi, giá bán cao nhất 16.000 USD/m2 - Ảnh 1.
source: JLL VIỆT NAM

– Along with the increase in supply, demand to buy houses has also increased. Total sales reached 3,932 units, up 98% over the same period last year. Absorption rates have remained above 85% since 2017, reflecting strong home buying demand with the majority of homebuyers with real housing needs, first-time homebuyers and currently living in HCMC. Meanwhile, the Covid-19 epidemic has limited capital flows in the manufacturing sector, with lending interest rates remaining low to stimulate economic growth. That has made residential real estate increasingly attractive to investors, promoting transactions in the market.

– JLL assessed that the Department of Natural Resources and Environment of Ho Chi Minh City is implementing a project to remove legal problems, which is expected to help improve supply in 2021 with new launches expected to reach 20,000-25,000 units. Projects are mainly coming from the east and south gate of the city. The scarcity of land and limited supply in the inner city have helped divert supply and demand to suburban areas, where there is a large land bank and a transport network gradually improving. Newly launched apartment prices are forecasted to continue to increase according to market sentiment. The birth of large-scale integrated projects in the suburbs with many practical conveniences for the formation of new residential communities here, so market sentiment will be promoted in a sustainable direction.