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Saturday, June 15, 2024

HCMC housing market sees limited supply, rising costs

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HCMC – The real estate market in HCMC and neighboring provinces is seeing a scarcity of new residential block development projects, coupled with increasing costs, according to a January-February report by DKRA Group.

Data showed that only six projects with a total of 440 units were opened for sale during this period, a 34% year-on-year decline.

In the first two months of the year, housing sales in HCMC, Ba Ria-Vung Tau, Dong Nai, and Long An provinces totaled only 247 units, or 56% of the available supply. Class B apartments accounted for the majority of both the supply and new consumption, at 76% and 93%, respectively.

In HCMC, selling prices ranged from VND52.5 million to VND82 million per square meter. Although prices remained relatively stable, projects with complete legal status, fast construction, and timely handovers saw 3-6% price spikes.

In 2023, a report by Savills said that the supply of apartments in HCMC dropped to a decade low, with only 10,700 units put up for sale.

The real estate services provider said apartments priced between VND2 billion and VND5 billion per unit would become scarce in the coming years, while homes priced at between VND5 billion and VND10 billion would dominate the market.

The HCMC Real Estate Association (HoREA) said a healthy and sustainable housing market was needed.

The current housing market in HCMC is not sustainable as 71.5% of apartments on the market are in the high-end segment.

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