Ho Chi Minh City real estate market is bustling, apartments are 'hot'

Although it is the 7th lunar month, the real estate market in Ho Chi Minh City is still quite active, especially in the apartment segment. Primary prices in projects are anchored at high levels, recalling the "hot" market periods when apartment prices were equal to townhouse prices.

It is not unusual for apartment prices in Ho Chi Minh City to be higher than townhouse prices. (Photo: Doc Lap)

In Thu Thiem New Urban Area, An Khanh Ward, the price of some apartments at The Crest Residence tower of The Metropole project is being advertised for sale at over 200 million VND/m2.

Specifically, a 2-bedroom apartment with an area of ​​83 square meters is being offered for more than 18 billion VND. Meanwhile, also in An Khanh ward, a townhouse with an area of ​​90 square meters is being offered for sale at 13 billion VND, equivalent to 144 million VND/square meter.

Similarly, the selling price at some new apartment projects in the vicinity is also recorded at a fairly high level. For example, a 72m2 apartment at The Privé project of Dat Xanh Group is being sold for 8.6 billion VND, equivalent to nearly 120 million VND/m2; or a 1-bedroom apartment at Lumière Midtown project in The Global City urban area of ​​Masterise Homes has a pre-tax selling price of 7.6-8.5 billion VND, equivalent to 160 million VND/m2.

In the same area, the selling price of apartments in the next phase of the Eaton Park project developed by Gamuda Land has increased slightly compared to before. An 80m2 apartment is being offered for 11 billion VND, equivalent to 138 million VND/m2.

According to a survey, within a 3km radius of the above projects, it is not difficult to find a townhouse for sale with a unit price of 100-150 million VND/m2.

In Hiep Binh ward, Diamond Sky apartment of Van Phuc Group is being offered by brokers at 150 million VND/m2, about 30% higher than the common price of townhouses in the same area.

This is the first high-rise subdivision in Van Phuc City Urban Area. The fact that the investor has never developed an apartment type, along with the price being considered too high, has made many people question the liquidity of the project. Meanwhile, the nearby Urban Green apartment complex has a selling price of 60-80 million VND/m2.

According to Mr. Vo Hong Thang, Deputy General Director of DKRA Group, it is not unusual for apartment prices to be higher than townhouses, especially for high-end projects in central areas, with prime locations and full amenities.

However, the irrationality lies in the fact that the supply of mid- and high-end segments dominates, while affordable housing and the low-cost segment almost disappear.

"In some apartment projects, there is a situation of 'price inflation' based on profit expectations. This is one of the reasons why apartment prices are getting closer to, or even exceeding, townhouse prices," said Mr. Vo Hong Thang.

Source: https://baoquocte.vn/thi-truong-bat-dong-san-tp-ho-chi-minh-soi-dong-can-ho-chung-cu-nong-sot-328260.html