The supply of apartments in the center of Ho Chi Minh City increased again

Minh Hoàng
April 27, 2021

The apartment market in the first quarter in Vietnam had a slower start year-on-year. However, this situation will soon recover and break through, especially in the central area of Ho Chi Minh City.

– In recent years, the apartment market has always been in an active state when the number of transactions and supply shows signs of growth over the same period. However, based on the first quarter report of Savills Vietnam, both indices have declined markedly. The lack of supply of apartments to meet high demand has led to a slowdown in market performance.

– Specifically, the primary stock in the first quarter reached more than 4,900 units, down 56% quarter-on-quarter and 31% year-on-year. The total new supply reached more than 2,200 units from 2 new projects and the next phase of 8 existing projects, down 73% QoQ and 38% YoY.

– In which, two new Grade B projects, Masteri Lumiere and King Crown Infinity in Thu Duc City, account for 33%. Grade B was the primary supplier in the first quarter with 57% market share. New urban areas in Thu Duc City and District 7 account for 78% of Grade B primary stock.

– Explaining these numbers, Ms. Vo Thi Khanh Trang, Deputy Director of Research, Savills Vietnam, said that the apartment market for sale in the first quarter in Ho Chi Minh City is facing a lower supply increase than the same period of years when the products are mainly from inventory of previous projects.

– In addition, the products have a large area with quite high prices, leading to poor absorption compared to the same period in recent years. The main cause of this decline was due to the slow progress of the project development approval process and many backlog of problems.

The CBD of Ho Chi Minh City is forecast to increase supply again after a long absence in the market. Photo: Quynh Danh.

– However, experts assess that the slow start of the first quarter will not be a long-term prospect when the market is predicted to be active soon.

– Supply in the first 9 months of 2021 will reach more than 15,000 units and there will be a big boom in 2022 as supply increases to more than 30,000 units. Most of the supply is expected to come from the segment B and C apartments, but the supply of Grade C apartments will decrease gradually in the coming years.

– The central area of ​​Ho Chi Minh City will be the most vibrant place in the market. It is expected that more than 14,600 apartments in all three segments will enter the market, especially the areas in the East (District 9) and the South (District 7) of Ho Chi Minh City. At the same time, the city’s first luxury apartment project, Grand Marina, will set a new selling price milestone.

– “Grade C projects have decreased a lot compared to before and apartments with prices around 1,000 USD / m2 are very rare. In addition, the limited land bank in Ho Chi Minh City has made apartment prices soar. In response to the financial potential of customers and investors, real estate developers have implemented a plan to reduce the area but still keep the value of an apartment to maintain the attractiveness of the product ” , Ms. Trang added.

– In urban areas such as Binh Duong, Long An, and Vung Tau, with the improvement of infrastructure, more and more developers are opening projects and building apartments in these areas. According to Ms. Trang, in the three provinces above, Binh Duong province has a higher level of urbanization. At the same time, the development of this local industry has been and will be promoting the development of infrastructure and increasing the demand for housing.

– The expert affirms that the traffic connection between Binh Duong and Ho Chi Minh City has been significantly improved to make traffic no longer difficult. With such advantages and high price difference compared to Ho Chi Minh City, choosing to buy a house in Binh Duong becomes an ideal and reasonable thing. The apartment developers in Binh Duong have grasped the consumer behavior and needs of the people, so they have created products that can meet them well, so apartment projects in these localities. is receiving high attention.


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