Savill Consultancy Real Estate has just released a report real estate market in the second quarter in Ho Chi Minh City. Accordingly, the apartment segment recorded unexpected happenings.
Savills reports that in the second quarter of 2004, four new projects and the next phase of seven existing projects open for sale, providing more than 4,700 units. Total primary stock of apartments reached more than 37,200 units, down 12% quarterly and 7% year on year.
Despite declining supply, market trading recorded a spike, up 33% on quarter and 67% year on year. With nearly 11,600 units sold, Q2 / 2017 sales have peaked since 2011.
The impressive performance of Grade B and Grade C made the market’s absorption rate increase by 10 percentage points on a quarterly basis and 13 percentage points on year, about 31% in the next year. GradeC has the highest absorption rate ,about 37% and accounts for 64% of total transaction volume.
According to the observation, in the second quarter of last year, apartment projects prepared to store roofs increased strongly. For example, at the project Dragon Hill Residence and Suites 2, investors of Phu Long Real Estate Joint Stock Company said that as soon as the roof of the project, the volume of successful transactions has skyrocketed. Especially, during the roof-topping event in early July, the number of successful apartment transactions has been 2-3 times higher than those of the previous openings. It is known that the project Dragon Hill Residence and Suites 2 has completed the construction of two towers of 450 apartments to enter the completion phase in time to hand over to buyers before Lunar New Year.
In addition to Dragon Hill Residence and Suites 2, the markets also recorded a series of other projects increased trading progressively near the time of handover. It can be mentioned as Him Lam Phu An, after three rounds of open sale. All three blocks A, C, D have achieved 99-100% success rate. A series of Novaland roofing projects, such as The Tresor and Rivergate (Van Don Harbor, District 4), are also being sold aggressively by investors.
The supply in the future, Savills said that from Q3 2017 to 2018, nearly 48,000 units are expected to enter the apartment market. Grade C is expected to occupy the future supply of nearly 46%.
Before, the report of CBRE company in the second quarter also stated that the apartment market was particularly active in Q2 / 2012 after investors had considered the strategy of selling and the evaluating products. According to CBRE, in the second quarter, the market also recorded positive consumption. The total units sold 9,522 units, up 40% quarter-on-quarter and up 59% over the same period last year.
Looking at future market prospects, CBRE also forecasts improvements in infrastructure and macroeconomic factors to continue to support the real estate market. In the second half of 2017, the premium segment will be more active. Some of the projects in prime locations such as D’Edge Thao Dien (Q2), the second phase of Empire City (Q2), have started taking place at the end of Quarter 2/2017.
In addition, the market will receive more new products more advanced, larger area and there will be more luxury projects. With the entry of high-end products, average market prices and foreign buyers are expected to increase in the second half of 2017. At the same time, projects that are affordable to many people such as The Park Residence, Park Vista, Jamila Khang Dien … also received a lot of attention from the market in the coming time.
Nearly 500,000 households in Ho Chi Minh City have no housing
The latest statistics show that in Ho Chi Minh City, 23.46% of households still have no house or are living with their parents or relatives. The specific number of 476,158 households is not yet home to a total of 2,029,202 households across the city.
Of the households without housing, the vast majority of the 300,000 migrant households, followed by 156,000 low-income households, are affected by urban refurbishment projects which are not sufficient. Money to buy commercial housing, about 20,000 households civil servants are not home.
According to a report on the results of social housing development was submitted to the HCM City People’s Committee on June 27, from 2006 to 2016 the city government has approved policies for 56 social housing projects With about 48,000 units and so far only about 14 projects have been completed with 5,146 units, including 6 social housing projects with state budget funds and 8 off-budget projects.
The City’s Department of Construction said that in 2017 alone, 12 more social housing projects will be started with about 9,500 units, 2018-2020 projects will commence with another 16 projects. 28,500 units. These projects use both budget and non-budgetary capital through policies to attract investment in urban refurbishment, relocation of houses along canals, encouraging investors to participate in building social housing.
You are watching the article Apartment sales in Ho Chi Minh City exceeded the peak in the last 6 years.
More information is available at: https://realestatevietnam.com.vn/