DKRA Group's real estate market report for Ho Chi Minh City and neighboring provinces in October 2024 shows that apartment prices increased by 3-8% in the month, with the highest selling price reaching 493 million VND/m2.
According to this report, primary supply in the apartment segment recorded a slight decrease of 1% compared to the same period. Market demand recorded signs of recovery, increasing by 93% compared to the same period. Most of the records came from new projects launched for sale during the month in Binh Duong and Long An.
Primary selling prices of the apartment segment continue to remain high due to pressure from input costs. Some projects in provinces bordering Ho Chi Minh City recorded an increase of 3%-8% compared to the previous sale basket, 3-6 months apart. In Ho Chi Minh City, the highest apartment selling price is up to 493 million VND/m2, the lowest is 30 million VND/m2.
According to experts from DKRA Group, the selling price and liquidity of the secondary market of apartments continue to recover, with transactions concentrated in projects that have certificates or are in the process of preparing to hand over houses.
For the townhouse and villa segment, in October 2024, the primary supply of this segment recorded an increase of 6% compared to the same period last year. In addition, the new supply had positive improvements with about 109 units opened for sale, an increase of 52% compared to the same period.
Market liquidity recorded a significant improvement, with primary consumption and new consumption increasing 6.3 times and 4.4 times respectively compared to the same period in 2023. However, the overall market demand remained low, only reaching about 2% of the total primary supply.
The primary price level did not fluctuate much compared to the previous quarter and remained high due to the pressure of input costs. The highest selling price of a villa or townhouse in Ho Chi Minh City was up to VND700 billion/unit, the lowest was 5.3 billion VND/unit.
One of the main reasons for the high housing prices is the surplus of high-end products, while mid-range and affordable products are increasingly scarce, and this situation is still happening.
Mid-range apartments only appear in suburban mega-urban projects, while the affordable apartment segment has almost "evaporated" from the market.
People are very concerned and worried that real estate prices in big cities have been very high and show no signs of stopping. 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...
To curb housing prices, experts say, there needs to be a comprehensive solution regarding credit, raw material prices, land price policies, etc., but this is not easy to do.
The problem of land prices increasing according to the new price list, thereby pushing up real estate prices, is still unsolved. When the land price list increases, the cost of land use and compensation for site clearance of enterprises will increase sharply and real estate prices will inevitably increase accordingly.
Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association (HoREA) - said that to reduce housing prices, it is necessary to increase the supply of housing, especially affordable housing, and to increase the supply, it is necessary to first thoroughly resolve the projects that are facing problems and backlogs.
