Real estate land and townhouses, villas have mixed price trends

According to the report on the real estate market in Ho Chi Minh City and surrounding areas in the first quarter of 2023 by DKRA Real Estate Services Group in the first quarter of 2023, the real estate market in Ho Chi Minh City and surrounding areas is in a state of stagnation, with low liquidity. New supply and demand in the whole market have decreased significantly compared to the same period in 2022. Entering the second quarter of 2023, the market is expected to recover significantly, but it will be difficult to make a sudden change in the short term.

Land prices increase

In Ho Chi Minh City, the market continues to be scarce in new supply and consumption is recorded at a low level compared to the first quarter of 2022. The land segment witnessed a rare return of new supply in Ho Chi Minh City after a long period of absence of projects. The resort real estate type recorded the lowest decrease in supply and demand in the past 10 years. In particular, projects with completed legal procedures, ensuring infrastructure progress and long-term ownership still attract good market attention.

Specifically, the land segment in the first quarter of 2023 in the Ho Chi Minh City market and surrounding areas recorded 8 projects opening for sale with a supply of about 385 products, down 79% compared to the same period in 2022. New consumption reached 78 plots, down 94% compared to the same period last year. The land market in the surrounding areas continues to hold a dominant position when new supply is mainly concentrated in Long An and Binh Duong .

Real Estate - Real estate land and townhouses, villas have mixed price trends — Land prices for sale in the first quarter of 2023 in Ho Chi Minh City are expected to increase by 5-7%. Illustrative photo from the internet

In particular, Ho Chi Minh City rarely saw new supply after a long period of absence of projects, contributing 13.8% to the total market supply. The new selling price level in the quarter had an average increase of 5% - 7% compared to the same period in 2022, the increase was concentrated in projects with completed legal procedures and good infrastructure progress.

The apartment market recorded 9 projects opening for sale in the last quarter, with a new supply of about 1,378 units, mainly concentrated in Ho Chi Minh City and Binh Duong. The new supply decreased by 67% compared to the previous quarter and decreased by 59% compared to the same period in 2022. New consumption reached about 864 units, equivalent to 63% of the newly opened supply and decreased by 66% compared to the same period last year. Notably, Class B apartments became the main segment leading the market, accounting for 56.2% of the total supply, mainly concentrated in the North of Ho Chi Minh City.

Prices of townhouses and villas decrease

New supply of townhouses/villas in Ho Chi Minh City and surrounding areas in the first 3 months of 2023 welcomed 375 units for sale from 9 projects, down 39% compared to the first quarter of 2022. New supply is mainly concentrated in Binh Duong.

The consumption volume was equivalent to 54 units, down 87% compared to the same period last year. The consumption volume was mainly concentrated in projects with prices under 3 billion VND/unit. The new selling price level decreased by an average of 9% - 25% compared to the previous launch. Liquidity in the secondary market is still quiet.

The resort real estate segment has seen a clear decline in both supply and consumption since the end of 2022. The primary selling price has not fluctuated much. Many investors have continuously postponed sales or closed their product portfolios to adjust prices and introduce appropriate sales policies.

In the resort villa segment, the new supply received 42 units from 2 projects opening for sale in the next phase. Market demand recorded the lowest level in the past 10 years with 9 units sold. The selling price ranged from 3.1 - 167.8 billion VND/unit. Policies on interest rate support, principal grace period, etc. continued to be applied by many investors to stimulate market demand. In particular, many projects recorded discounts of up to 50% for quick payment. Projects applying the revenue sharing method attracted the attention of customers due to the transparency of cash flow.

In the resort townhouse/shophouse segment, the market recorded 21 new units from 2 projects opening for sale in the next phase. The consumption volume reached about 12 units. However, compared to the remaining resort segments, the townhouse/shophouse segment still attracts good market attention, especially projects with full legal documents and long-term ownership. In addition, under pressure on cash flow, investors also offer discount options of up to 40% - 50% when customers pay quickly.

The condotel segment in the first quarter of 2023 recorded a new supply of about 198 units from 2 projects opened for sale. New consumption reached about 6 units. The primary selling price increased by about 15% - 20% over the same period due to pressure on input costs, inflation, and high interest rates. Between sales openings 3 - 4 months apart in the same project, there was also a clear price difference, with an increase of 2% - 5%/period. Many investors applied policies to stimulate the market and support customers such as principal grace period, interest rate support, commitment/sharing of profits/revenue, etc.

Dao Vu

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