Why Are Housing Prices Going Up?

The land fund is scarce, the land market is more and more people pay special attention, pushing up land prices in the East increased from 130% -170% in the past 3 years.

The latest report by DKRA Vietnam said in 2017, the real estate market in Ho Chi Minh City has the highest price increase in the country as well as the market has set the price of new short than other provinces.

Price increase of the areas and the segment of housing in Ho Chi Minh City is uneven. In general, the lower the starting price, the higher the margin and vice versa. The price of the real estate market in Ho Chi Minh City is influenced by many factors.

A large number of people creating demand for houses continues to be a big cause of the price impact. In addition, the price is strongly influenced by the development of transportation infrastructure and regional planning information.

Flexibility in the sales policy of the investor has a great impact on the psychology and liquidity of the market, stimulating apartment prices growth.

In addition, terrestrial fever, particularly in 2016 and early 2017, has also contributed to the market’s appreciation. Although the price fever has been adjusted but hard to return to the top selling.

Later projects have higher prices than previously offered projects because the quality of the project is getting better and better. In addition, input costs increase (eg, construction materials, labor) … also affect the selling price.

Continuing to create new price in Ho Chi Minh City

Specifically, after the freezing period from 2010 to 2013, the real estate market in Ho Chi Minh City entered a period of recovery and development vibrant. Beginning in 2014, the real estate market in Ho Chi Minh City flourishes again. Up to now, the real estate market in Ho Chi Minh City has set up a new price with real estate values higher than in 2012.

For the apartment, a type is still a quite stable market, the price increase steadily over the years, especially the class B and C-class apartments that are suitable for the income of many families in Ho Chi Minh City.

The large number of people creating demand for houses continues to be a big cause of the price impact.

The reason is that the land fund in HCM City is gradually scarce, land prices are high and must go far from the center so the apartment is affordable, near the center is always the choice of many families with income midrange.

***See more information about the real estate investment here: Vietnam real estate investment

As noted by DKRA Vietnam, the apartment segment C class in 2012 has an average price of about VND13 million/sqm, so far (2017) the average price ranges from VND18 to 20 million/sqm. That’s 54% up after 5 years.

The B-grade apartment segment in 2012 is priced at VND18-20mil / sqm, so the new price in this market is around VND27-30million / sqm, up 67% y / y.

The Grade A apartment segment in 2012 has an average price of VND33 million/sqm, so it is now about VND 55 million / sqm, up 47%.

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