Scarce supply, average apartment price 66 million VND/m2

Ho Chi Minh City: Scarce supply, average apartment price 66 million VND/m2

According to CBRE, the average primary selling price of apartments in Ho Chi Minh City reached 66 million VND/m2 of net area, up 4% quarter-on-quarter and nearly 8% year-on-year.

Apartment prices increase again

According to CBRE, secondary selling prices also increased by an average of 3% quarter-on-quarter and 5% year-on-year, reaching around VND48 million/m2. Notably, some projects in prime locations saw price increases of up to 10% year-on-year, reflecting high housing demand and a severe shortage of supply.

The average apartment price in Ho Chi Minh City is 66 million VND/m2.

Also in the latest report on the real estate market in Ho Chi Minh City by DKRA Group, primary apartment prices remained high under the pressure of project development input costs. Secondary prices recorded a general increase of 5% - 9% over the same period. Of which, the highest price reached 493 million/m2.

In particular, data from market research units such as CBRE shows that Ho Chi Minh City is facing a shortage of apartment supply, especially mid-range and high-end apartments. In the 3 quarters of 2024, Ho Chi Minh City recorded a new housing supply of only about 11,000 products, focusing mainly on the apartment and townhouse segment. This low supply mainly comes from the next phases of existing projects.

Mr. Vo Hong Thang, Director of the market research department of DKRA Group, said that in the fourth quarter, the class A apartment segment with prices above 100 million VND/m2 will continue to maintain its dominant position in Ho Chi Minh City, while the class B and C segments will not be present in the Ho Chi Minh City market much.

“In particular, primary prices may continue to increase slightly due to pressure from input costs for project development,” said Mr. Thang.

At the same time, market research units all believe that, with Ho Chi Minh City officially applying the new land price list from October 31, 2024, financial obligations related to land such as land use fees, personal income, fees, and transfer fees will increase accordingly. This puts upward pressure on real estate projects, causing more difficulties for home buyers and investors.

Mr. Dinh Minh Tuan, Director of Batdongsan in the Southern region, commented that the new land price list forces developers to adjust real estate prices. At this time, the price advantage will belong to projects that have stable planning. At the same time, buyers who pay at this stage will also avoid the "shock" of double price increases due to the difference between supply and demand and the new land price list.

Housing prices are putting pressure on people

Speaking at the seminar on the Southern real estate market held on October 31, Associate Professor, Dr. Tran Kim Chung, former Deputy Director of the Central Institute for Economic Management (CIEM), said that in 2024, the market will record a difference. In particular, the apartment market will have a "price increase". If mid-range apartments before the period of 2022 - 2023 fluctuated around 35 - 40 million VND/m2, then in 2024, the price increased sharply, fluctuating from 65 - 70 million VND/m2.

And with this price, the pressure on workers to be able to buy a house is very large because the demand for housing is increasing in Ho Chi Minh City as the number of immigrant workers is increasing, focusing on the middle and high-end segments. Housing demand is also increasing sharply in areas around industrial parks and satellite cities in Binh Duong , Dong Nai, Long An. But income cannot keep up with housing prices.

Rare Comic Boulevard project in Ho Chi Minh City priced under 40 million/m2.

Mr. Nguyen Hoang, an independent real estate expert, said that currently, apartment projects priced at 3-4 billion VND/unit in Ho Chi Minh City are considered suitable compared to the general level, suitable for the needs of the majority. However, with the current limited land fund and new supply showing no signs of improvement, this price may continue to increase in the future. And when housing prices continue to increase in the future, it means that the burden of buying a house for people will increase as well.

According to Mr. Hoang, the primary price of apartments can only “cool down” when the market has more projects dedicated to middle-income earners. However, with the limited supply of affordable apartments and tight legal conditions for investment, the development of suitable products for this segment is facing many obstacles.

“ Every year, Ho Chi Minh City needs about 50,000 more apartments to meet the housing needs of the people, of which 60-70% want to buy low-cost houses. Therefore, it is necessary to have housing development solutions that are suitable for financial capacity to reduce the burden of people being able to buy houses,” said Mr. Hoang.

Looking back at the overall market of Ho Chi Minh City today, it can be seen that the opinions of market observers are well-founded when surveying the projects currently open for sale in Ho Chi Minh City, it is rare to see a project called Conic Boulevard in Binh Chanh district, which was just opened for sale by the investor in early November at a price of 37 million VND/m2.

According to Mr. Nguyen Hoang, this project rarely has the above price because the investor built it and paid the land use fee many years ago.

As for the representative of the project distribution unit, Eximrs Company, with a price of only 37 million VND/m2, customers only need to pay about 450 million VND, the rest will be supported by the bank with a loan, 0% interest rate for 18 months, principal grace period up to 60 months. This is a rare project that the Ho Chi Minh City market still has.

Also according to the project distribution unit. In the context of the real estate market in Ho Chi Minh City facing a shortage of supply and escalating prices, the Conic Boulevard project is not only a housing solution suitable for people's finances but also contributes to reducing pressure on the market. With guaranteed construction quality, full amenities and reasonable prices, Conic Boulevard promises to bring many families the opportunity to settle down in Ho Chi Minh City in the current challenging times.

However, the question is whether after this project, Ho Chi Minh City will have any other projects with such low prices. And whether this is the last project in Ho Chi Minh City with prices suitable for the finances and income of the majority of people with real housing needs in Ho Chi Minh City.

Source: https://baodautu.vn/batdongsan/tphcm-nguon-cung-khan-hiem-gia-can-ho-trung-binh-66-trieu-dongm2-d229596.html