In the past 12 months, the city has 19 projects with 14,339 apartments for sale, down 22% YoY and bottoming in 6 years.
The above content is stated in CBRE Vietnam's 2021 apartment market summary report just released. The reason for the continuous decline in supply is due to the impact of slow project licensing in recent years and the heavy impact of the epidemic blockade between 2021 (second and third quarters).
After the first 9 months of the year were negatively affected by the fourth Covid-19 epidemic, the apartment market in Ho Chi Minh City has shown signs of gradually recovering during the peak sales season at the end of the year. New supply in the fourth quarter of 2021 contributed 48% of the total new supply for the whole year. The number of apartments successfully offered for sale in the past year reached 14,639 units (including new supply and inventory), down 7% compared to the same period last year.
CBRE's data on the supply of Ho Chi Minh City apartment projects in 2021 fell to the lowest level since 2015, the basket of goods was only slightly higher than the period of the real estate market crisis 2011-2013. Screenshots
High-end apartments led the market supply last year when accounting for 59% of the new basket, mid-end and luxury apartments accounted for 30% and 10% respectively. While the affordable segment continued to have no new supply for the second consecutive year. The East area became the capital of high-priced houses when 8 luxury and high-end projects were launched, accounting for 52% of new supply. The western and southern regions with market shares of 22% and 17% respectively hold the next two positions. In the North and the Central area, each place recorded a new sale.
This survey unit has added the ultra-luxury segment besides the luxury segment to the classification criteria. Accordingly, super-luxury projects are defined as all projects with a primary price of $12,000 per square meter or more. The apartment market last year recorded the first super-luxury project in the branded apartment product line with a price of over 15,000 USD per square meter, fully handed over according to international standards, with many high-class facilities and well-equipped. managed and operated by a professional hotel brand. This type of branded apartment is expected to launch many new projects in the near future.
Real estate market in the east of Ho Chi Minh City.
The average selling price of apartments in the primary market increased by 6.9% yoy to $2,306 per square meter (excluding value added tax) thanks to new supply from the high-end and higher segments. The average asking price of super luxury apartments is 15,375 USD per square meter, coming from a branded apartment project. Except for the luxury segment, the remaining three segments recorded a slight increase in price. The mid-end segment had the highest price growth rate of 4.2% year-on-year, while the high-end and low-end segments increased by about 2%.
Suburban areas such as Binh Tan, Binh Chanh, and Thu Duc districts tend to upgrade from the mid-end segment to the high-end segment. For the luxury segment, new sales increased in non-CBD areas including An Phu, Thao Dien, and Thanh My Loi wards at lower prices compared to traditional areas of this segment (Thursday area). Thiem and District 1) caused prices to drop by 4.4% year-on-year.
From the end of the fourth quarter of 2021, many projects have started to receive reservations for the opening sale in early 2022, the primary selling price is expected to continue to increase. In the next 12 months, the market expects to welcome nearly 22,000 new apartments from the next phase of existing projects. Reduced supply, still high house prices and limited land fund in the inner city of Ho Chi Minh City are causing the housing market to shift to neighboring areas such as Binh Duong, Dong Nai and Long An.
Ms. Duong Thuy Dung, Senior Director of CBRE Vietnam, said that housing tastes and preferences of customers are constantly changing due to the impact of the pandemic, which is strongly dividing the market.
According to her, apartments with completely new features such as technology and the trend of staying at home are appearing in many new projects. The apartment market in big cities like Ho Chi Minh City is seeing growing interest from young millennials who were born between 1981-1996 and Generation Z (next generation). Y system) was born in the period 1997-2012. This is the customer file that is and will be the main consumer force to buy apartments in the future.
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