Although many real estate projects in Ho Chi Minh City are "clogged" due to legal issues as well as affected by the Covid-19 epidemic, the average selling price has been continuously pushed up, apartment prices increased by 27%, Country house prices increased by 42% in the past year…
APARTMENT PRICE INCREASED NEARLY 30%
Recently, the Ho Chi Minh City Real Estate Association (HoREA) has issued a document summarizing the recommendations of 57 real estate businesses with 64 projects stalled due to legal problems.
According to HoREA, in Ho Chi Minh City, there are many businesses that negotiate land clearance by themselves to have a clean land fund and invest their own capital to invest in building social housing projects, especially social housing projects. leasing… But due to major problems in law enforcement, some projects were "congested" and could not be implemented.
Therefore, the Association proposes the People's Committee of Ho Chi Minh City to give drastic directions to departments, branches, districts, cities. Thu Duc closely and expeditiously worked together to remove obstacles in construction investment procedures, or adjusting the 1/2000 subdivision planning, or procedures for allocating land to investors in social housing projects. … to increase the supply of social housing in the near future.
Because, only social housing projects Le Thanh - Tan Kien (phase 1 and phase 2); social housing project Le Thanh - Tan Tao 2; Nam Ly social housing project; social housing project for rent (phase 2) Linh Trung Export Processing Zone 2, if obstacles are removed to start construction of social housing projects in the first 6 months of 2022, will provide an additional 5,209 apartments in the year 2024-2025…
According to statistics of Cushman & Wakefield Vietnam,
From 2004 to now, the total supply of apartments in HCMC reached 315,000 units. In which, the new supply in the first quarter of 2022 reached 2,500 units, coming from 04 projects Vinhomes Grand Park (Beverly The Resort), Akari City Phase 2, Masteri Center Point, and Picity High Park.
New projects are all in the mid-end segment and have an average selling price of USD 2,500/m2 (equivalent to VND 57.1 million/m2).
The average selling price of the whole market including all segments reached 3,300 USD/m2 (equivalent to 75.4 million VND/m2), up 8% QoQ and 27% YoY.
The apartment market's selling price has continuously peaked in the past 10 years, Cushman & Wakefield Vietnam believes that the increase in prices is mainly due to the increase in land prices in the context of limited land fund, rising construction material costs and a welcoming market. receiving more products in the luxury and ultra-luxury segments, boosting the average price.
However, demand fell 20% QoQ and 11% YoY with 2,300 units sold in Q1 2022. By the end of 2022, Cushman & Wakefield forecasts that the supply of apartments will reach 10,000 units, with the popularity of large-scale complex urban models and super-luxury apartments appearing on the market.
According to Mr. Ngo Quang Phuc, General Director of Phu Dong Group, in Ho Chi Minh City, the company has a lot of land funds, but it is not possible at this time because the market is in trouble. However, in the suburbs of Ho Chi Minh City, such as: TP. Di An (Binh Duong province) has a great opportunity, because the number of interested customers is always high, house prices are cheap, and legal procedures for project development are easy. Specifically, the company recently opened for sale the new project Phu Dong Sky Garden which is an apartment product located near Ho Chi Minh City, the average selling price is 40 million VND/m2.
HO CHI MINH CITY HOUSE PRICE 3 times higher than neighboring provinces
In the past 3 years, the market has witnessed the movement of many real estate "big guys" to the surrounding areas of Ho Chi Minh City with many land house projects being developed.
The total supply of land-based houses in Ho Chi Minh City and neighboring provinces includes: Binh Duong, Dong Nai, Long An, Ba Ria - Vung Tau, from 2004 up to now reached 50,000 units. In which, the supply in Ho Chi Minh City accounted for 49% with 24,500 units.
In the first quarter of 2022, there were 04 projects in Ho Chi Minh City to supply products to the market, including: The Global City, Van Phuc City, Senturia South Saigon, Grand Marina Saigon.
The selling price of land-based houses in Ho Chi Minh City is three times higher than the selling price in neighboring provinces. Specifically, the average selling price in HCMC was $7,580/m2 (equivalent to VND 173 million/m2), up 30% QoQ and 42% YoY.
The significant average price increase recorded in the quarter was mainly due to the record high selling prices of two projects in Ho Chi Minh City. Thu Duc also set a new peak in the market.
The average selling price in neighboring provinces reached USD 2,630/m2 (equivalent to VND 60 million/m2), up 6% QoQ and 46% YoY.
Townhouses continue to be a popular segment with 300 units sold in HCMC. By the end of 2022, Cushman & Wakefield forecasts that the supply of land-based houses in neighboring provinces will be more active than in Ho Chi Minh City in the context of the investment wave in non-CBD areas continues to heat up.