JLL's Ho Chi Minh City real estate market research report shows that in the third quarter of 2024, the primary supply of high-end apartments (including high-end, luxury and super luxury segments) came from two prominent projects, Eaton Park (Gamuda Land) and The Aurora (Phu My Hung), which were licensed to sign sales contracts in the quarter, contributing a total of 938 units.
The addition of these new projects at a time when market supply is limited further increases the attractiveness of these projects to potential buyers.In terms of liquidity, according to JLL's report, the high-end apartment market recorded 1,059 units sold, of which the majority of sales belonged to two newly launched projects, Aurora and Eaton Park, which were pre-opened for sale one or two quarters ago.
Meanwhile, Savills Vietnam's Q3/2024 real estate market report also provided data showing that the primary apartment supply in Ho Chi Minh City decreased by 36% year-on-year to 4,871 units in the third quarter, due to reduced inventory and no new projects being launched.
Regarding selling prices, according to JLL data, primary selling prices in the high-end apartment market recorded a decrease of 3.7% and 5.4% quarter-on-quarter and year-on-year, respectively, reaching 4,811 USD/m2.This decrease was mainly due to the removal of sold-out high-priced projects from the primary basket.However, considering each project individually, most of the asking prices remained stable.On the other hand, secondary prices continued to grow well with an increase of 4.4% quarter-on-quarter and 11.1% year-on-year, reflecting the limited new primary supply and high primary price levels.
In fact, apartment prices in Ho Chi Minh City and neighboring provinces have increased steadily over the years, even for the same project, the later sales are higher than the previous sales.In Ho Chi Minh City alone, projects near the center are all priced at over VND100 million/m², even projects 20km from the center of Ho Chi Minh City have prices up to VND80 million/m².
Apartments under VND3 billion are considered affordable in Ho Chi Minh City, but the number of apartments at this price only accounts for 18% of the supply and are mainly located more than 10km from the city center.
In the next three years, according to Savills Vietnam, the supply of affordable apartments will only account for less than 5%.Therefore, if people want to buy apartments at "affordable" prices, they have to go to satellite provinces such as Binh Duong and Dong Nai when about 24,000 apartments are expected to be offered for sale in the next three years.With the current relatively high price level, only a few people can own a house, because they need to have a source of income and initial capital for banks to lend money to buy a house in installments.
According to JLL, in the last three months of 2024 and 2025, the high-end apartment and townhouse segments are expected to welcome about 6,000 - 7,000 units and 4,000 new units, respectively.The market is expected to record the return of many old projects restarting and new projects opening for sale when new laws have been implemented and come into effect early from August to boost market sentiment.However, it is forecasted that the market will hardly have a sudden recovery in the short term and will still face many difficulties and challenges.
Regarding housing demand, JLL forecasts that the focus on real demand, especially in lower-priced projects and projects developed with full legal transparency, will boost sales in newly launched projects in the next 12 months.Selling prices of new projects remain high, however, preferential sales policies are expected to continue to be promoted to stimulate buyer demand in the coming time.
Market is quiet but house prices remain high
Bảo Chương |
HCMC - Recently, although the market has been sluggish, housing prices have still established a new price level, so it is difficult to reduce them without improving supply.
