Although there have no signs of a crisis, the rapid increase in supply has made renting high-grade apartments in District 2 fall sharply.
In Ho Chi Minh City in the year 2017, there has been a sharp increase in the supply of condominiums, with the focus of District 2 being the high-end apartment segment. Besides the positive effect is to make the real estate market warm up, many investors also dabbled because high-grade apartments in District 2 offer to sell the risk of humidity, but the rent is falling.
The supply of luxury apartments in District 2 increased drastically
By the end of Q2 / 2017, the number of high-grade apartments in district 2 offered for sale on the real estate market in Ho Chi Minh City is over 6,300 units, accounting for 30% of the total segment. The growth rate of the second quarter luxury segment also increased by 141% compared to Q1.
In the last two quarters of 2017, the supply of District 2’s apartments under $3 billion and over $3 billion continues to increase due to a series of projects being completed, including Water Bay, Sensation Thao Dien, Victoria Village, Vista Verde, One Verandah, Palm City, Saigon Mystery Villas, Thu Thiem New City, Diamond Island or An Phu Complex.
Meanwhile, the demand for luxury apartments in district 2, though high, may not be able to catch up with the rapid growth of supply. This is the reason leading to the situation of oversupply, lack of demand sooner or later will happen, causing the sale and rental of apartments are falling.
The price of apartment for rent in District 2 has decreased sharply
By the end of 2016, rents of high-end apartments in District 2 in particular and in Ho Chi Minh City have tended to decrease, but in April 2017 rents are even more pathetic. With an apartment of more than 100 m2 with living facilities, the rent from more than $1,000 / unit/month to less than $1,000 / unit/month, even the previously available for $2,000. per month, this is just over $1,000 per month a little rented.
While District 2’s rents have fallen by nearly 30%, the situation of the low-end segment and affordable housing remains good. As such, it is clear that the rapid increase in supply has put pressure on luxury apartment rental prices to fall.
According to many landlords share, renting luxury apartments in District 2 is reduced to one thing, in addition to the long-lasting humidity that they do not get out of embarrassment. The reason is that now the customers have too many options, they have the right to price and demand very high quality of the building as well as the convenience of the house that you will choose.
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Prior to that, Savills Hanoi Director Matthew Powell said the real estate market in District 2 has not fallen into crisis, the high-grade apartment District 2 is falling so is the inevitable rule of the market, when the supply increased The price must be reduced and the quality of products must increase to get the trust of customers.
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