HCMC Consumers More Than 37000 Apartments In 2016

CBRE has just announced the HCM City real estate market report for the fourth quarter of 2016 with the focus on end-of-year buying significantly improved. Selling speed in the past 3 months suddenly rebounded higher than the first half of the year, absorbing 50% market share (old and new) while the absorption rate of new goods reached 68%.

Only in the fourth quarter, Saigon has 9,455 apartments sold from 18 new projects and 28 former (new and next) sales. In 2016, HCMC apartment market is self-adjusting towards more balanced. Supply has fallen compared to 2015, but the number of intermediate apartments has risen sharply, accounting for 47% of the basket of goods surpassing the supply of luxury apartments.

More than 37,000 apartments in HCMC will be sold in 2016

Mid-end apartments are also the top-performing segment, accounting for 46% of the total basket of goods. The highest number of successful offers reached 65-73% in districts 2, 7 and 9. The average selling price on the residential market increased by 4.6-5%, especially in some projects. The rate of increase is about 7-10% higher but this amount is not significant.

This unit forecasts that in 2017 the new apartment supply in HCMC is expected to increase compared to 2016 but the market focus is mainly on the low-cost segment.

Ho Chi Minh City land plummeted

CBRE’s report also shows that the segment of villas/townhouses built in HCMC in 2016 set a new record not only of new supply but also of selling price.

Accordingly, the project land price is expected to increase sharply in 2016, especially in focal areas such as Thu Duc District, District 9, Binh Tan district, District 12, Binh Chanh district. This place increased on average by 20% -40% over the previous year.

Price increases can be explained by the fact that some infrastructure projects have been completed in the past year, enhancing interconnections across the city. However, CBRE also noted that the price increase was recorded at the offer price from the seller, so may not reflect the market demand.

Land prices in Ho Chi Minh City are trending up

Compared to the ground, the rise in prices of villas/townhouses is not so prominent. In 2016, HCM City welcomed 3,062 apartments from 13 projects, up 40% over the previous year. This has set a new record not only for new supply but also for the price of the built-up townhouse/street market in HCMC.

Suburban areas such as Thu Duc District, Go Vap District and District 12, which have not been operating for a long time, recorded a 15% price hike thanks to new projects. Price in District 9 increased 10% over the previous year while District 7 remained stable with only 2.5% increase.

On the other hand, the price in District 2 is down about 3% from last year because of the new products located in less favorable locations targeted to the budget (Citibella, Palm Residences). Considering the absorption rate, 2,304 units were sold in Ho Chi Minh City last year, mostly from new projects.

In the fourth quarter of 2016, the market welcomed two new projects: LaVila in Nha Be District (238 units) and The Pegasus (69 units) in District 8. Both of these projects were sold out in just a few months… In addition, Merita Khang Dien and River Park in District 9 with 307 units open for sale officially, will be officially launched in 2017.

In 2017 and in the coming years, with the growing momentum, many large investors will expand their investments in areas that are not well-exploited; Therefore, CBRE forecasts that the market will not have much direct competition.

However, as the absorption rates of these new markets have not been confirmed, there will be more small projects being developed in advance for market research. In addition, these new projects are unlikely to be located in the high price segment, so the average selling price will be lowered unless several high-end projects are offered in District 2.

In areas that have been developed as long as District 9, District 7, Nha Be District, due to the lack of key projects, both the selling price and absorption rate are expected to stabilize in 2-3 years and one without many sudden changes.

You are reading the article “HCMC Consumers More Than 37000 Apartments In 2016” in the section “Real Estate” on the website: https://realestatevietnam.com.vn/
All information sharing, feedback please email to contact.vietnamrealestate@gmail.com, Hotline (+84) 898 898 688 (24/7).
Thank you!