Sai Gon set up new record about prices

Real estate market in HCM City records the old price was broken

The land fever last time has blew real estate prices in the market in Saigon up to the level of utopia. The figure is 60-170%, which is unprecedented in the past decade.

The latest report from DKRA Vietnam shows that three segments of apartments, land and townhouses in Ho Chi Minh City have experienced strong fluctuations. Especially from post-crisis to recovery.

Apartments, land and commercial buildings in Ho Chi Minh City experienced a period of intense fluctuations with pressure

Apartments still dominate the excitement of the market

DKRA Vietnam has studied and surveyed housing prices in the market more than 10 million people for many years. Research results show that the type C apartment in 2012 has an average price of VND13 million/aqm. By 2017, its average price has fluctuated between VND18 million and VND20 million per square meter (up 54% year on year).

Apartment type B in 2012 is priced at between VND18 and 20 million/sqm. Until this year, new prices set in the year fell to about VNd27-30 million (up 67%). Apartment type A in 2012 has an average price of about VND33 million/sqm. So far this time has about VND55 million (up 47%) after 5 years.

Although there have been many concerns about excess supply in the market. DKRA said that the apartment is always the type that keep the most stable rhythm in the market. Selling price over the years has been stable and increasing steadily. Especially, Grade B and Grade C apartments are very suitable for many people living in Ho Chi Minh City. The reason is because the urban land fund is shrinking. Land prices are higher and far from the center, so the average apartment and near the center is always the first choice of many families.

On the other hand, the average income of young families is increasing. The rejuvenation of property buyers, along with the flexibility of the owner’s sales policy. Has created a psychological impact and liquidity in the market, thereby increasing the price of apartments.

Apartment prices in Ho Chi Minh City have set new price floors much higher than the period of 2017

Townhouses and villas on the market are not much prominent

Meanwhile, due to the characteristics of the type of town houses, villas depend mainly on land market in the past 5 years. Therefore, the margin of this segment is not high, only fluctuate in the range of 20-56%.

Most types of townhouses and villas are concentrated in the East such as districts 2, 9 and the South such as Phu My Hung. District 9 recorded an increase of 56% in five years. Over the years, this area has made many positive changes in infrastructure and transportation.

The price of the villa, there is a clear distinction in different areas. Greater dependence on planning and quality of service in each location. Typically, the area of ​​District 9 has a very high amplitude. But this area only fluctuated at about VNd42 million/sqm. While Phu My Hung has a range of VND 150 million / sqm.

Land is still important in the market

Ground is always the type that Vietnamese people are particularly fond of because of its stability and durability. In the current situation the land fund is increasingly rare, this market is more interested investors. This is an important factor contributing to the increase in land prices over time.

The amplitude of the land price increase is also uneven, depending largely on the development of transport infrastructure. As in the East, prices have risen from 130-170%. This is the place where the most developed infrastructure in the past three years.

Currently, the price of land in Phuoc Long B Ward, District 9 ranges from VND27-35 million / sqm. In the South, typically Tan Thuan Dong Ward, District 7 recorded a price increase of 50%. Average fluctuation of about VND42-55 million/sqm.

General Director of DKRA- Pham Lam said that in terms of macro, real estate prices are affected and depend heavily on economy, per capita income, CPI, interest rates, exchange rates, gold prices and evidence. contracting, … In general it is greatly influenced by factors outside the market.

However, looking at the macro level, the price of new real estate in HCMC is affected by the resonance of many internal factors.

Firstly, the impact of transport infrastructure development and the impact of regional planning information.

Second, due to the development of social infrastructure, services and facilities in many areas of the city has impacted on the price of real estate.

Thirdly, the vibrant economy has created gravity, leading to many industrial areas that attract professionals and workers. Large demand is also the reason for the rapid increase in selling prices.

In addition, earthquake strikes will occur in coastal areas, especially in 2016 and early 2017. It has also exerted some influence on the price increase in the market. Although the price fever has been adjusted again, however, it is difficult to return to the original level.

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