The supply of apartments for sale will improve in 2021

Minh Hoàng
April 26, 2021

(TN&MT) – According to experts’ forecasts, by 2021, the real estate market in Ho Chi Minh City will have many positive signals, the supply will be improved, especially the apartment segment for sale.


– CBRE Vietnam’s market report shows that in 2020, the real estate market in Ho Chi Minh City continues to record a decrease in the supply for sale due to two main reasons. First, the process of new licensing and licensing to modify projects continues to drag on resulting in slow project implementation. Second, in order to curb the spread of the Covid-19 epidemic, stretching, restricting travel and suspending international flights has disrupted open sale events planned for 2019. In the context In short supply, selling prices have been pushed up in areas in the city, especially in suburbs.

– Accordingly, the supply for sale in 2020 will reach 17,272 units, down 35% compared to 2019. This is the lowest level in the past 6 years and the first year in a row the market has recorded a decline in supply. Quarter 4/2020 recorded 6,696 apartments offered for sale from 6 projects. In terms of segments, for the whole 2020, the market will not have any affordable products offered for sale. Meanwhile, the high-end segment accounted for the highest proportion for the first time with 76% of the total supply for sale. The mid-end segment only accounts for 17% and the luxury segment accounts for 7% of the main supply coming from 2 projects in Thu Thiem The River and The Metropole.

– In terms of location, the East area accounts for 91% of the supply for sale by units and 43% by the number of projects thanks to the urban area project in District 9. The establishment of the city. Thu Duc is expected to change the face of the region and continue to increase supply in the East. The South area accounts for 38% by number of projects but only 7% by number of units. There is no new supply in the central and northern areas due to lack of land bank. The average selling price on the primary market reached VND50 million / m2, up 9% q-o-q and 13% y-o-y.

– The average price increased sharply due to the products offered mainly in the high-end and luxury segments. At the same time, newly launched projects in peri-urban districts have an offering price 20% – 30% higher than the regional price. Luxury selling price recorded the highest increase of 9% year-on-year. The slight decrease is due to the fact that the next phases and new projects in the outlying districts have surpassed the level from mid to high level. The mid-end and affordable segments recorded price increases of 5% and 4% respectively over the same period last year.

– With the price increase and the impact of the Covid-19 epidemic, the absorption of the housing market for sale is affected. Only 75% of new products offered for sale will be sold in 2020, lower than 90% in 2019. Inventories, when recorded, increase significantly in the high-end segment, up 74% year-on-year. In Q4 / 2020, there were 5,007 units sold, total sales for the whole year reached 15,086 units, down 49% from the previous year. The scarcity of supply makes the secondary market more active, especially in the eastern districts such as District 2 (Thu Thiem, An Phu, Thanh My Loi) and Binh Thanh District.

– In 2021, no major changes are expected but will improve compared to 2020. The market is expected to have about 17,500 additional apartments in new projects in urban districts. Primary prices are expected to continue to increase compared to 2020, but the increase is more unstable so that the market can consume all the remaining products. The primary asking price in 2021 in the segments will have an increase in the range of 1% -4% compared to 2020. Particularly, the price of luxury apartments is expected to increase from 2% -7% in 2021, 2022 thanks to New products are branded luxury apartments in District 1.

– The secondary market will continue to be active due to the scarcity of primary resources and the establishment of a new price level by the primary market. Residents, although it is difficult to find products to suit their needs and budget in the primary market, will have more options on the secondary market with apartments with good construction progress or table preparation. delivery. Looking more broadly on neighboring provinces, the scarce supply in Ho Chi Minh City will force buyers to seek opportunities in Binh Duong, Long An and Dong Nai. These markets are expected to continue to grow in 2021.

– Ms. Duong Thuy Dung – Senior Director of CBRE Vietnam said: “Although there are still many difficulties and the road to recovery will not be flat, the apartment market will continue to receive the attention of residents and residents. Investors. In addition, the recent positive signals from key infrastructure projects such as the groundbreaking of Long Thanh airport and the establishment of the city. Thu Duc will be the driving force to restart the market.