Supply has gradually improved in the HCMC real estate market in the final period of 2024. However, most of the supply continues to focus on the high-end segment and sky-high prices.
For example, the Masteri Grand View apartment project in The Global City Urban Area (Thu Duc City) has just been introduced to the market by the investor with a preferential price for quick payment of 100 million VND/m2. In case customers choose the payment method with the normal progress, the price will increase to 130-140 million VND/m2 (excluding VAT).
Gamuda Land is preparing to open the next phase of the Eaton Park project (Thu Duc City) in early December. The selling price is reported by brokers to be no less than VND140 million/m2 (excluding VAT). In addition to this project, Gamuda Land has just held a groundbreaking ceremony for the Elysian project in Thu Duc City with a total planning area of over 2.8 hectares, providing the market with 1,398 apartments, with areas ranging from 37-107 m2/unit. The selling price of this project is estimated to be no less than VND100 million/m2.
Although they were mentally prepared for the increase in housing prices in Ho Chi Minh City, those who were looking for a place to live were still surprised by the new prices at the newly introduced projects. Meanwhile, mid-range apartments only appeared in projects on the outskirts of the city, the affordable apartment segment almost "evaporated" from the market.
DKRA Group's October 2024 real estate market report shows that primary selling prices in the apartment segment continue to remain high due to input cost pressure. Some projects in provinces bordering Ho Chi Minh City recorded an increase of 3% - 8% compared to the previous open sale basket, 3-6 months apart.
In Ho Chi Minh City, the highest apartment selling price was up to 493 million VND/m2, the lowest was 30 million VND/m2. Most apartment segments recorded an increase in secondary selling prices in the third quarter, in which the luxury apartment segment had the most outstanding price increase, with an increase of nearly 10% compared to the same period last year.
Many experts have warned that if the imbalance in the supply structure of market segments continues without timely intervention, the market will face many consequences such as creating the risk of a real estate "bubble", increasing inequality in access to housing and putting pressure on social security...
However, through discussions with a number of real estate businesses with upcoming projects, most share the same opinion that it will be difficult to lower home prices in the near future when costs continue to increase over time.
The time to complete the project’s legal procedures from the step of approving the investment policy to obtaining a construction permit usually takes 2-3 years, or even longer. Thus, capital is still poured into the project during that time, but the investor has no source of income, so the only way to recover the cost is to increase the product price. This pushes up the selling price of housing and leads to a situation where there are projects that sell very slowly but show no signs of decreasing in price.
In addition, the increase in the new land price list will also indirectly increase the cost of land fund creation, land use fee payment... in the context of increasingly narrowing land fund.
