High-end real estate demand around Thu Duc City will increase sharply in 2022
In Ho Chi Minh City and neighboring provinces such as Dong Nai and Binh Duong, although high-end real estate products are worth several tens of billions of dong/unit, they are still popular with investors.
Villa supply recovers
After a long time the supply of villas and townhouses was in short supply due to the complicated situation of the Covid-19 pandemic, in the first quarter of 2022, the primary supply in Ho Chi Minh City market was restored.
According to the latest market report of Savills Vietnam, this growth comes from the effective vaccination plan of the Government of Vietnam, thereby promoting new supply as well as restoring the sales plan of the Vietnamese government. investors. Specifically, the primary supply reached nearly 490 units, up 23% QoQ and 3% YoY.
High-end real estate segment conquers the market after the Covid-19 epidemic
Specifically, the new supply in the first 3 months of the year was recorded from 10 newly launched projects, and the next stages of sale of 2 existing projects in the old district 9, district 12, Tan Phu district, Binh Chanh district and the old Thu Duc district.
According to the Research department of Savills Vietnam, by the end of 2022, the supply of villas/townhouses is 1,130 units/plots expected to be offered for sale, of which 56% comes from big developers such as Vingroup, Masterise Homes, etc. Khang Dien, Keppel Land and Dai Phuc Group. In particular, the projects are developed in a closed complex urban area, with a high density of green space and full facilities to meet the needs of homebuyers after the Covid-19 pandemic.
For neighboring localities such as Dong Nai and Binh Duong, Savills noted the tendency of buyers to expand investment in the context of a scarce supply of affordable housing in Ho Chi Minh City.
Troy Griffiths – Deputy General Director of Savills Vietnam, assessed: “The supply of land-based houses in Ho Chi Minh City continues to be low, so housing demand is gradually moving towards neighboring provinces such as Dong Nai and Binh Duong. . Thanks to the abundant infrastructure development and land bank, land-based real estate projects in Dong Nai reached 85% and Binh Duong reached 67%. However, the market shows signs of speculation, with about 65% of people buying for investment rather than real demand.
Green living trend promotes customer demand
Commenting on the change in behavior of homebuyers today, Ms. Ginny Nguyen - Senior Manager of Savills Housing Sales Department in Ho Chi Minh City said that after the Covid-19 pandemic, the housing needs of a A group of customers in the middle class and well-off in Vietnam have moved to real estate with a larger area, surrounded by green and private spaces, not concentrated in densely populated areas.
“With a certain budget, most of these customers often look for products in the vicinity of Ho Chi Minh City such as Dong Nai or Binh Duong to optimize costs. Therefore, in the past time, luxury villa products priced at VND 30 - 40 billion at Aqua City project or The Icon subdivision of Swan Park project were all "sold out" during the opening time," - Ms. Ginny Nguyen commented.
Besides, Ms. Ginny Nguyen also said that after the epidemic period, the demand for luxury land-based housing products became higher than ever when the new supply was increasingly limited and few new projects opened. .
A representative of Savills said that although the selling price of townhouses in Ho Chi Minh City is currently at a relatively high level, many customers are still interested in buying to live and invest. Typically The Global City project in Thu Duc City has now opened for sale in 2 phases, with a record high price from 370 million VND/m2 for townhouses or commercial townhouses. The sales of this project recorded a good absorption rate because the area is positioned to become the new center of the city.
Explaining the high rate of homebuyers for investment, Ms. Ginny Nguyen informed that customers of these products already own a lot of real estate in their hands, and are looking for products in new markets with potential for growth. high price growth. Along with that, real estate in satellite markets is also bought by customers, such as second and third homes for short weekend vacations with family with lots of green space.
“The development trend of villas and townhouses of satellite markets in the coming time will develop further, because the central land fund for land house project development is not much and the development licensing procedure is not enough. New projects are slow. Investors will certainly shift resources to acquire clean land funds in satellite cities to develop projects in order to cut costs and catch up with trends," added Savills representative.
