Luxury apartment prices continue to increase by 21%

A recently released report by Cushman & Wakefield shows that in 2022, the apartment market in Ho Chi Minh City recorded a total of 17,028 units for sale, an increase of 87% compared to 2021. In the fourth quarter of 2022 alone, new sales reached 983 units, a decrease of 76% compared to the previous quarter.

According to Cushman & Wakefield, the government's review of bond issuance and tightening of credit control policies have partly created a cautious mentality among buyers and investors. In the fourth quarter, the market recorded only nearly 1,100 apartments for sale, down 74% compared to the number of sales in the previous quarter and accounting for only 6.5% of the total supply for the whole year of 2022.

Credit controls on the real estate sector and legal entanglements have put pressure on the market. Therefore, both buyers and investors tend to wait and see the new policy in 2023 before making a decision.

Giá căn hộ siêu sang không giảm mà tiếp tục tăng 21% - Ảnh 1.

Luxury apartments still increase in price compared to the previous quarter

However, the average selling price of primary apartments in the fourth quarter of 2022 still increased by 21% compared to the previous quarter, reaching about 3,400 USD/ ^m2 . This increase is mainly due to new launches from super luxury, luxury and high-end projects such as The Opusk Residence Thu Thiem (Metropole Thu Thiem phase 4), De La Sol and Zeit River Thu Thiem...

In the context of tightening credit, many payment policies targeting customers with cash in hand have been introduced, mainly prioritizing quick payment with high discounts and many incentives, such as: discounts from 3% - 16%; principal grace period and interest-free from 12 - 36 months when borrowing from banks, giving away furniture, committing to re-renting or discounting directly on the value of the apartment.

According to Cushman & Wakefield, demand for mid-range apartments remains high, with buyers favoring healthcare products and flexible payment schedules. However, long-term investment is the appropriate strategy at this stage.

For the townhouse market in Ho Chi Minh City, in 2022, the new supply reached 1,200 units, up 12% compared to 2021. Meanwhile, the number of successful apartments sold decreased by 3% due to sluggish market sentiment and buyer hesitation. Primary apartment prices decreased slightly by 0.2% quarter-on-quarter due to some projects offering discount policies, but prices still doubled compared to the same period last year because the supply mainly came from the high-end segment in prime locations.

Cushman & Wakefield forecasts that in 2023, due to limited development land and difficulties in raising capital, the new supply of townhouses is expected to be lower than 900 units, down 27% compared to 2022. Investors and projects are focusing on completing amenities, aiming to create communities, with new supply continuing to shift to non-central areas. Customers and the market are moving towards real estate needs, instead of investment purchases. Projects with clear legal status and flexible payment schedules in the context of capital difficulties will attract customers.

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