Accordingly, the high-end apartment market (including the High-end, Luxury and Super Luxury segments) recorded no new supply in the fourth quarter of 2023. In the whole year, the supply of high-end apartments reached 4,898 units, down 6.1% over the same period last year. Most investors are cautious in launching new sales because the market sentiment has not improved much, some investors have postponed the new sales schedule to next year.
In the lower segment, the Ho Chi Minh City market only recorded extraordinary liquidity in a project located in the western part of the city due to its reasonable price, meeting real housing needs. This project, after 1 month of opening for sale, recorded an absorption rate of nearly 90%.
Notably, the liquidity of luxury apartments in the last quarter of the year recorded only 39 transactions, with a sales rate of 2.3%. Most of the transactions were mainly concentrated in a number of projects offering high discount policies for quick payment plans, while most of the inventory in the remaining projects witnessed a slowdown in transaction volume.
Luxury apartments have no fluctuations in liquidity and selling prices because investors are still "waiting".
Flexible payment policies such as price discounts, payment term extensions or interest rate support continue to be tools to help stimulate home buying demand.
Regarding the selling price of high-end apartments, the primary market has almost no significant fluctuations with the price of 5,087 USD/m2, up 0.04% quarter-on-quarter, down 12.7% year-on-year. Although the selling price of most projects remains stable, the market still recorded a decrease in primary prices.
The main reason is the high discount rate, up to 40% for quick payment packages in some projects with large inventory. For the secondary market, transaction prices increased slightly by 1.4% quarter-on-quarter. Projects in good locations with high quality handover standards still attract investment.
Similar to luxury apartments, the townhouse segment also recorded only 37 units officially opened for sale from a project in Binh Chanh. The total new supply in the year reached 180 units, reaching a record low in the past 10 years. The main reason comes from investors delaying project introductions during a period of market weakness. Another reason is due to delays in legal procedures or construction progress for projects that have been pre-sold but have not met the conditions for signing sales contracts.
Townhouses have not shown clear signs of recovery in the last period of the year.
The townhouse market continued to record limited transactions with 58 units sold in Q4/2023, down 74.8% year-on-year. The absorption rate in the quarter improved but remained low at 15.1%, while the absorption rate for the year was only 30.9% (down 60 percentage points year-on-year). The sluggish transaction situation was due to limited new supply, prolonged buyer caution, and expensive inventory (over $1 million/unit).
Townhouse prices also remained stable at USD 15,245/m2, up 1.8% QoQ. Projects continued to maintain attractive policies such as lease commitments for shophouses, providing interior finishing packages and high-value gifts. In the secondary market, some units were sold at lower expected profits than before to stimulate transactions, resulting in modest growth in secondary prices in Q4/2023, at 0.9% QoQ and 4.8% YoY.
According to a JLL report, the high-end apartment and townhouse market is expected to welcome about 4,900 and 2,400 new units, respectively. However, the launch events are expected to only start to heat up in the second half of 2024. Housing demand is forecast to recover slowly and improve as new supply shifts to the lower-priced segment and interest rate fluctuations and the economic situation become more stable.
It is expected that in the next 12 months, due to the new housing support policies expected to take effect only from 2025, the market situation has not yet had many significant improvements, causing investors and buyers to be in a wait-and-see attitude. The selling price is expected to be adjusted, with the adjustment level significantly depending on the development of new supply and market sentiment in the coming time.
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