According to Savills Vietnam, the townhouse market in Ho Chi Minh City is operating at its weakest level in the past 5 years with transaction volume and absorption rate continuously decreasing. The main reasons are limited supply, blocked bond capital and difficult economic situation affecting people's finances.
In 2023, the total primary supply reached only 993 units - the lowest in the past 5 years, with 286 units sold - equivalent to an absorption rate of 29%. Selling prices are mainly concentrated in the segment above 30 billion VND/unit, far beyond the affordability of the majority of people.
Supply in Ho Chi Minh City from now until 2026 is forecast to improve. Accordingly, townhouses will reach nearly 5,500 units, of which 75% are concentrated in suburban areas and 25% in Thu Duc City.
Good traffic infrastructure helps many projects on the outskirts of Ho Chi Minh City develop
According to Savills Vietnam, the scarcity of land in the inner city of Ho Chi Minh City also causes housing prices to increase, leading to reduced affordability.
Thus, because supply is limited and investors are gradually moving towards the high-end housing segment, the target buyers are inevitably narrowed and the absorption rate is significantly slowed down.
Savills Vietnam Research predicts that in 2024, the market will have 1,400 more townhouses, of which products priced at VND20-30 billion account for about 65%. High selling prices while the market is declining continue to be a big challenge for absorbing this new supply.
Notably, new supply tends to shift to neighboring localities. For example, Binh Duong province will have more than 3,400 new units, of which more than 90% are priced under VND10 billion; Dong Nai province will have 2,900 more units, of which 41% are priced at VND5-10 billion and 29% are priced at VND10-20 billion.
Savills Vietnam assesses that Dong Nai and Binh Duong have advantages in developing low-rise housing to supply the Ho Chi Minh City market thanks to synchronously upgraded infrastructure, helping to shorten travel time.
Source: https://nld.com.vn/tp-hcm-se-co-them-1400-can-biet-thu-nha-pho-gia-len-den-hang-chuc-ti-dong-196240304173016657.htm
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