Mr. Vo Hong Thang, deputy director of R&D DKRA Vietnam, said that in the areas of Ho Chi Minh City, the West area is experiencing interesting developments when the price of apartments is still soft in the range of 45-60 million VND/m2, which pretty good account.
While in the East, the supply still accounts for the majority of the real estate market in Ho Chi Minh City.
However, the price of apartments in this area has fluctuated and increased quite quickly, establishing a new ground. Products priced from 50-60 million VND/m2 are gradually becoming scarce. The price threshold of 35-40 million VND/m2 has almost disappeared in Ho Chi Minh City in general and the East in particular.
The survey shows that, at present, this area has only a few real estate projects that are still at the price threshold of 55 million VND/m2, while almost touching the 100 million VND/m2 mark. For example, in the area of To Ngoc Van street, Thu Duc City, and Thang Long Real Group's FIATO Premier project developed with this price, the project is currently introducing to the market 21% podium shophouses to the market. until you get home.
In the same area, there is an Urban Green project that also offers a price of about 60 million VND/m2, which is noticeable because it is lower than the general level of real estate in the East. While according to a report by Batdongsan.com.vn, the average price of apartments in Thu Duc City has reached 85.1 million VND/m2 from the end of 2021.
Update on Ho Chi Minh City apartment real estate market in the first 6 months of 2022, Mr. Vo Hong Thang - Deputy Director of R&D DKRA Vietnam analyzed, although the market supply and demand in the first 6 months of the year had a positive recovery. pole. However, compared to before the epidemic, the supply only accounts for more than 50%. With 16,800 units opened for sale in the first 6 months of 2022, this number increased by 96% compared to the first 6 months of 2021, but a sharp decrease compared to previous years. Worth mentioning, the supply is mainly concentrated in the East area of Ho Chi Minh City. Along with the limited supply, the demand rebounded. Consumption reached approximately 84% of the whole HCMC market.
“The most interesting thing is, in the first 6 months of the year, the supply of real estate in the West of Ho Chi Minh City has grown, because this place has been quite small so far with new products to the market. While real estate prices are quite high in other areas, the West area of Grade B apartments is still priced at 45-60 million VND/m2, with positive consumption, "emphasized Mr. Vo Hong Thang.
In the area of Vo Van Kiet Street, Binh Tan Ward, there is still phase 2 of Nam Long Group's Akari City project, which is offering a price of about 45 million VND/m2. It is calculated that each apartment with an area of 75m2 (2 bedrooms) has a price of about 3.1-3.3 billion VND / unit. This is still an acceptable price compared to the general price level of Ho Chi Minh City apartments at the present time.
Mr. Thang affirmed that, in the whole Ho Chi Minh City apartment market, the Grade A segment accounted for 58%, Grade B was 30%, while the last 3 years had not recorded a supply of apartments priced below 35 million VND/m2. Currently, to find an apartment for 40 million VND/m2 in Ho Chi Minh City is also not available. “So to see, the price of apartments in Ho Chi Minh City is already at a new threshold. Finding a price from 50-60 million VND/m2 in this city will be increasingly difficult in the near future," Thang emphasized.
Many predict that real estate prices will "cool down" because of the psychological impact at this time. However, it will be difficult for primary real estate prices to fall because of the impact of input costs and the project approval procedure has not yet progressed. The picture of the first 6 months of 2022 has shown that the primary price of apartments still increases by 8-15% between phases (3-5 months apart). While secondary projects' prices fluctuated slightly or increased slightly at 3-5% compared to the same period last year, focusing on projects that have already been handed over, transport infrastructure conveniently connected to the city center. .
Even, according to Deputy Director of R&D DKRA Vietnam, currently an apartment project in Ho Chi Minh City has reached the price of 425 million VND/m2, while Binh Duong is on average 36 - 52 million VND/m2. Of course, with high-priced projects, the sales speed is lower than before. However, this further proves the "reverse" story of the apartment market: Although liquidity is slow, prices will hardly fall in the primary market. And even in the midst of an increase in price, but the transaction demand is still above 80% is a remarkable signal.
The demand for buying real estate in Ho Chi Minh City is still very large.
Forecasting the apartment market in the last 6 months of the year, Mr. Thang said that the new supply in Ho Chi Minh City may decrease, reaching about 70% of the supply in the first 6 months of 2022 (9,000 - 11,000 units); Binh Duong maintained at about 3,000 - 4,000 units; Long An about 300 apartments; other provinces are in short supply of new supplies. The general demand as well as market liquidity may continue to be affected if banks' move to tighten real estate credit has not been resolved in a timely manner. The Grade A apartment segment maintains its dominant position and leads the new supply of the whole market. While Grade B real estate is increasingly scarce. Therefore, Ho Chi Minh City has a Grade B apartment project on the market that is immediately interested.
According to experts, currently the real estate market is forming a price paradox between the primary market and the secondary market. Specifically, the primary selling price in the market increased sharply, many times establishing new price levels. Particularly in Ho Chi Minh City, some areas saw a sharp increase in prices due to the scarcity of 3 new supplies due to the inspection and inspection of a series of projects and the lengthy legal process and procedures for project licensing. . Meanwhile, the secondary selling price recorded a local decrease in some illiquid projects but did not represent the whole real estate market.
Experts predict that in the near future, the primary price increase will be difficult to stop in the context of continuously escalating input costs, scarce new supply while investment demand is still very large. . In the long term, if the risks and challenges for the market are not overcome, the decline in prices in the secondary market will become clearer, which will directly affect the recovery of the general market.
“With the current market context, investors need to determine a medium and long-term investment strategy, avoid using too much financial leverage to be ready for price fluctuations and market liquidity. . This is also an opportune time for buyers with good financial potential to buy reasonable real estate, "said an industry expert.
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