HCM real estate 2018: land prices continue increasing

In general, the lower the price, the higher the margin and vice versa. “The rapid price fluctuation of the real estate market in Ho Chi Minh City is influenced by many factors”

HCMC real estate market – Housing prices rise

“The projects in Ho Chi Minh City are more expensive later than the project offered before. By the quality of the work more and more attention to investors. “

This is the opinion of Mr. Pham Lam – CEO DKRAVietnam. At the launch of the report on the property market of Ho Chi Minh City in 2017 of this unit.

In addition, the initial cost (construction materials, labor) … also increased so the impact on the price. Therefore, Lam predicts that house prices in Ho Chi Minh City will continue increasing.

Foreign investment is a resource to develop infrastructure and services to increase the price of real estate

It is known that the city is the area with the highest price increase in the country. It is also the market that set a new record for the shortest price nationwide. At the same time, the amplitude of price increases of the region and Ho Chi Minh City is not uniform.

It is the economic and financial center of the country. HCMC is attracting huge foreign investment. To be able to develop various types of services, services and utilities to serve the well-being of people. Accordingly, the rapid development of service facilities, utilities have a strong impact on the price of real estate market.

On the other hand, the attraction from the national economy 1 also contributed to increasing the attractiveness to customers. The number of professionals and workers who come here to work and settle down is enormous. The large population plus the labor force of extramarital affair creates more demand for home, which is also a cause for high prices.

Real estate prices are subject to the impact of the development of transport infrastructure and information planning projects.

Influence from macro factors (GDP growth, per capita income, CPI, interest rates, exchange rates, gold prices, securities), …

Remarkably, the land fever in the coastal areas, especially in 2016 and 2017, has affected the market price increase. Although after the fever, land prices have been adjusted to be reasonable. But it is difficult to return to the original level, Lam added.

In turn, these factors have resonated for the formation of a new price in Ho Chi Minh City upward trend. Make the dream of buying more homes more distant, especially young couples and middle-income households.

Real estate prices continue to rise

With the flat, despite concerns about excess supply; However, the apartment has always been a relatively stable market. The selling price has increased steadily over the years, especially the Grade B and Grade C apartments, which are suitable for the income of many families in HCMC.

According to Mr. Lam, the land fund of HCM City has become scarce. The current land price is quite high and must be far from the center can buy. Should the apartment is affordable, near the center is the best choice of many family.

On the other hand, the average income of young couples has gradually improved. The rejuvenation of real estate buyers and flexibility in the sales policy of the owner we can clearly see. It has affected the psychology of customers and the liquidity of the market, stimulating the prices of high-rise apartments.

Apartments and land in Ho Chi Minh City have high prices. Making the wish to have an apartment house is increasingly difficult for many people

For example, in the segment of apartment C class in 2012, the average price is about 13 million m2. Currently its average price (in 2018) fluctuates at VND18-20mil / sqm (+ 54% y / y) after five years.\

Same for the land segment, because it is always the kind of Vietnamese people preferred. Because of its stability and durability. In addition to the current status of land fund is increasingly scarce, the land market is more and more attention. This is the most important factor pushing up land prices in the past.

It is known that the amplitude of land price increase is uneven and depends much on the development of infrastructure. Typically in the East, prices are recorded from 130 to 170%. The reason is that this area has a strong development of traffic in the past 3 years.

Townhouses or villas are dependent on the ground

Particularly for the townhouse / villa segment, due to the characteristics of this type depends much on land prices. Over the past five years, the margin of this segment is not large, fluctuating only about 20-56%.

The type of townhouses, villas distributed most in the East. As District 2, District 9 and the typical South is Phu My Hung urban area. The highest increase was recorded in district 9, about 56% after 5 years. Cause the region has made great changes in infrastructure, transport.

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The type of townhouses, villas distributed most in the East

The price of villa type is clearly differentiated by different area. Much depends on the planning and service quality of each area. However, in general, the price of townhouses / villas over time also tend to increase with the general market.

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