Savills Vietnam: Real Estate Market In 2017 Will Continue To Grow

In a statement on real estate sales in Ho Chi Minh City in 2017 that has just been shared with the media, Mr. Nguyen Khanh Duy, director of housing sales in Savills Vietnam, the 2017 property market will continue to grow although it may not be as vibrant as in 2016.

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The “centrifugal” trend

According to Nguyen Khanh Duy, currently the city house in the city, especially the front and wide alley ones are still kind of products that many customers are interested in for many reasons, mainly around the benefits of renting business and demand for moving, travel. Especially, District 1, District 3 with the convenient location, prime location still has a stable purchase.In addition, in recent times, the trend of “centrifugation” has grown. Many customers started to pay attention to the products of available townhouses and villas, located 10-15 km from the center of Ho Chi Minh City, due to the increasingly scarce status, they will continue to attract capital inflows to pour in. In particular, in coastal areas such as District 9, District 2, District 7, Nha Be with good future transport infrastructure, they will be the destination of this trend.Not only because of the desire to get away from the stuffy, crowded, noisy, polluted, customers are heading to these areas but also because of the many well-planned projects that own spacious living space with many green areas, lakes, landscapes, parks, utilities, security and isolation. The common characteristic of customers in this segment is that family with children or generations living together and possessing their own cars for mobility without problems.“In this trend, there are some adjacent houses in District 2, District 9, Nha Be such as Palm Residences, Lucasta, Park Riverside, Melosa, Nine South Estates, Lake View. With 132000 to 220000 USD, customers can buy a product of adjacent townhouses close rough delivery, and with a higher budget, from 308000 to 352000 USD they can own a double or isolated villa.

The real estate market is continuing to increase

Meanwhile, with the same budget, they can only own a 2 to 3 bedroom apartment, in districts close to the central area with high population density” Nguyen Khanh Duy analyzed.According to a market report in the 1^st quarter of 2017 conducted by Savills, there is 7 new adjacent villas and townhouses project that supply about 590 units. At the same time, the initial supply is about 2,600 units, down 14 % quarterly but up 25% year on year.The transaction volume decreased by 11% quarter on quarter but up 94% year on year, with the Eastern District accounting for 74% of total transactions. Particularly, District 9 accounted for 49% of total sales. District 2 and Nha Be had the best deals, especially adjacent houses with an area of 90 – 120sqm that continue to be well absorbed.The bulk of the deal comes from new open-ended projects with effective marketing strategies and on-track construction. From the 2^nd quarter of 2014 to 2019, the market will receive an additional 14,200 units, from 44 new projects. Thu Thiem area, with a series of villa projects that is worth noting, is also rated as “bright star” in the future by the development of infrastructure, planning. The eastern districts are expected to account for 55% of total future supply.

Apartment market maintains “former self”

Savills Vietnam forecasts that this year is also expected to be the year of the residential apartment market when there are 18 new projects and the next phase of the 4 existing projects being sold, offering more than 8,300 units. According to a 1^st quarter report from Savills Vietnam, 5,200 new apartments were sold during the quarter and total primary stock in all segments reached 42,500 units.Total transaction volume in the quarter was about 8,800 units, of which, Class C transactions increased by 10% quarter-on-quarter while Grade B decreased by 35%. The overall market absorption rate was about 21%, down 1 % point quarter-on-quarter due to lower absorption rates from the A and B segments.

The real estate market remains strong

The western countries, such as Districts 6, 8, Tan Phu and Binh Tan, are the center of the popular segment.With the apartment segment in general, most customers are young, have a relatively high income. Two sales targets are also focused on investing or renting, but the percentage of buyers is also increasing rapidly. With a cost of 88000-132000 USD or more, projects built along the metro line attract the above targets when they meet the practical needs, especially the easy move to work, go out in the central area. At the same time, the investment in local utilities such as landscapes, shopping centers, convenience stores … also helps these projects have high rental value.For customers with a more ambitious budget, choosing a house that does not have to be too much of sharing space with other people, the environment, the community of the future, being managed by professional units is their primary concern. Currently, projects such as Empire City, City Garden, Gateway Thao Dien, The Nassim, Estella Heights, Diamond Island, Feliz En Vista … have high-quality products that are appreciated and have positive absorption rate.

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