No Comments

HCMC Property Market Is Quiet At The Beginning Of The Year

In the first months of 2017, HCM City property market has been quiet with the decline of new apartments and sales in all segments.

On March 29, CBRE Vietnam Co., Ltd announced the real estate market in Ho Chi Minh City in the first quarter of 2016. Accordingly, the first three months of the year showed the slowdown in the market.

In the first quarter, the market received an additional 5,083 apartments from 21 projects, down 44% quarter on quarter and down 49% year on year. The mid-end segment accounted for 52% of total new units sold in the first quarter. New apartments launched in the high-end segment were down 72% qoq.

For the first time, Saigon West has taken the lead in the number of apartments offered with 1,821 units, accounting for 36%. East ranked second with 1,523 units.

HCMC property market is quiet at the beginning of the year
The West became the center of the property market in Ho Chi Minh City

The number of apartments sold was reduced to 6,051 units, down 47% qoq and 29% yoy. This decline is mainly due to limited supply options due to the absence of a new offering. Medium-class flats accounted for 67% of total units sold in the quarter.

Average asking price of apartments reached $1,595 / sqm, up 6% q / q and 13% y / y. Offers increased by 7.9% in the high-end segment thanks to high-quality projects.

>>>Update on new information on the real estate report in Vietnam here: Vietnam real estate report

 On-demand, customers become more confident and able to pay better. Based on transactions made by CBRE Vietnam, the average value of a transaction increased 18% over the previous quarter and 22% over the previous year. The average area also improved to 109m2, up 28% over the previous year.

The market also showed a more balanced shift between the three buyers. In general, the group of buyers for the living is increasing. This group accounted for 31% of total transactions in the first quarter of this year compared with 23% in the first quarter of last year.

CBRE said that the improvement of infrastructure and public facilities such as Children’s Hospital 3 in Binh Chanh district will attract the attention of the market to the west of Ho Chi Minh City. The market is also waiting for a large-scale project from Vingroup in the popular segment in the East.

In the real estate segment attached to the land is often quite bustling in the first quarter of the year thanks to the holiday season. In the first quarter, the market for villas and townhouses was built to welcome five new projects, contributing an additional 500 units to existing supply.

HCMC Property Market Is Quiet At The Beginning Of The Year
The market also showed a more balanced shift between the three buyers.

All of this new supply is concentrated in the East with four projects in District 9 and one in Thu Duc District. The average selling price in District 2 increased by 1.4% qoq and 9% qoq. Offices of other centers such as Binh Thanh, Go Vap and District 12 have increased by 1.5-3% compared to the previous quarter.

CBRE forecasts that with the large-scale projects to be opened and the development of infrastructure to connect with the CBD, prices are expected to increase.

The retail market only welcomed two new projects in the first quarter of 2017: Sense Market 23-9 in District 1 and CBD Home Premium in District 2. Rental rates were recorded stable in most areas and type of business.

Grade A office space has no new supply this quarter. Grade A vacancy declined by 1.7 percentage points quarter-on-quarter and 1.9 percentage points over the same period.

In the future, the office market will be increasingly vibrant with opportunities for growth both in supply and rent. The move away from the center is also a growing aspect of new projects being invested in District 7 and District 9.

You are reading the article HCMC Property Market Is Quiet At The Beginning Of The Year in the Real Estate category at https://realestatevietnam.com.vn/.
Any information sharing, feedback please email to info@realestatevietnam.com.vn, Hotline 0909890897 (24/7).
Special thanks!

HCMC Property Market Is Quiet At The Beginning Of The Year
Review

Comments (0)