In 2022, Ho Chi Minh City is in short supply of villa and townhouse projects

March 5, 2022 | NEWS

The Global City – The line of villas and townhouses in the Ho Chi Minh City market in 2022 is forecasted to continue to be in short supply; Rare projects that are about to be launched are all particularly noticed by the market.

Utilities The Global City 4

Demand is high, prices continue to rise sharply

According to Savills' market report for the fourth quarter of 2021, the primary supply of villas and townhouses was nearly 400 units, down 23% QoQ and 58% YoY, no new projects were launched for sale. The new supply of more than 170 units comes from the next stages of sales of three existing projects in non-CBD districts including District 9, 12 and Go Vap. The shortage of mainland real estate products is forecasted to continue because the housing planning in Ho Chi Minh City by 2030 prioritizes high-rise housing development, while low-rise housing accounts for less than 10%.

HCMC - Scarcity of villa and townhouse projects in 2022

The transaction situation of villas and townhouses in the past 5 years. Source: Savills

While primary supply is scarce and development quality in complexes is getting better, the demand for land-based real estate ownership will continue to increase in 2022. Absorption rate of villas and houses 54%, of which the new supply reached the absorption rate up to 94% in the last quarter.

The difference in supply - demand leads to the selling price of villas and townhouses continuing to grow. Also as noted by Savills, in the last 3 years, the proportion of products with selling price of over 18 billion VND/unit has both primary supply and increased sales. In 2020 and 2021, products in this price range account for more than 50% of the total primary supply and account for about 40% of the total transaction volume. In the fourth quarter of 2021 alone, apartments over 18 billion dong accounted for 90% of sales. While before that, in 2019, this segment accounted for only 32% of primary supply and 28% of transactions.

Providing information on types of townhouses and villas in Ho Chi Minh City, Batdongsan.com.vn's January 2022 report stated that it recorded a breakthrough in search demand, with an increase of 30-54% in Ho Chi Minh City. many districts compared to the same period in 2021. The asking price of this type increased by over 20%, in which the supply is concentrated in the South and East areas. Typically the selling price of products at Sala villa area (Thu Thiem, Thu Duc city), according to data on Batdongsan.com.vn, the price is from 350 to 600 billion VND/unit, depending on the area. accumulate.

The price level of villas and townhouses in Ho Chi Minh City has set a new level and will continue to increase. In particular, Ho Chi Minh City has less and less land-based products for investors to focus on, limited land fund for this product, high buying demand promotes an exciting market in both transactions from investors and secondary transfer.

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New projects are welcome

In the context of scarce supply and high prices, entering the first quarter of 2022, a number of units have introduced to the market products of villas and townhouses. Some names can be mentioned such as The Muziki of Nam Long, The Classia of Khang Dien, Sunlake Villas phase 2 of Van Phuc ...

Notably, recently there have been revealed information related to the 117ha The Global City project located next to the Saigon Sports City complex and adjacent to the Long Thanh - Dau Giay highway. The project was formerly known as Saigon Binh An Urban Area and had a new trade name when it was acquired by real estate developer Masterise Homes.

Utilities The Global City 5

Location of The Global City project.

According to Masterise Homes, the project is well planned to become an urban area integrating modern and impressive landscape; advanced technology, eco-friendly and world-class luxury design. The project will be developed according to the world trend of modern and outstandingly developed global cities such as Dubai, Singapore... becoming a new "downtown" area of Ho Chi Minh City with complete infrastructure and utilities. diverse, high-class and a unique lifestyle mark of global residents.

Before the time of tightening the issuance regulations, a group of companies related to a super project in Thu Duc had raised VND 22,000 billion of bonds.

Forecasting about the market in the near future, Mr. Dinh Minh Tuan - Director of Batdongsan.com.vn in the South region said that the shortage of mainland real estate supply will continue due to the housing planning of the city. By 2030, priority will be given to the development of high-rise housing, low-rise housing products account for less than 10%. With a large land bank and increasingly improved infrastructure, districts 2, 9, Nha Be and Binh Chanh continue to be the focal point of Ho Chi Minh City's mainland real estate development.