According to historical prices at some real estate trading floors, in the first 6 months of the year, some apartment projects recorded a sharp increase in secondary market prices compared to the same period in 2023. Focusing on central areas such as District 1, District 4, District 7 or Binh Thanh District. For example, City Garden apartment complex is being offered for secondary sale at about 85 million VND/m2, an increase of 18.2% compared to the same period last year; Saigon Pearl has a secondary sale price of about 65 million VND/m2, an increase of 3.5%.
The reason is that the central areas are lacking in supply, or the new supply is leaning towards the high-end, luxury segment with high prices of up to over 100 million VND/m2. Therefore, home buyers with real housing needs, wanting to live in the central area, have to look for old products in the secondary market to suit their financial capacity.
In addition, some projects with good locations, ahead of traffic infrastructure or convenient for leasing with good occupancy rates are also sought after by customers and investors. For example, in Thu Duc City area, the most positive secondary price increase was recorded at Masteri Thao Dien, with an increase of 10.3%; Masteri An Phu increased by 5.5%; Safira Khang Dien increased by 5%, also recording an increase of 4.7%.
Many apartment projects near the center are recording increased selling prices in the secondary market.
Mr. Nguyen Duy Quang - a broker in Thu Duc area said: "Currently, the proportion of customers buying to live is larger than investors buying to hold, waiting for infrastructure development. In particular, investors buying houses in the secondary market also rent them out to increase profitability. Especially when the demand for rent and rental prices in central areas or areas with the leading infrastructure are increasing day by day".
This broker also said that with stable rental demand and increasing rental prices, landlords have increased selling prices. That is also the reason why the selling prices of apartment projects in the secondary market in the central area have increased compared to the same period last year.
However, on the contrary, many apartment projects are recording a price decrease in the secondary market. Specifically, according to historical price data of Batdongsan.com.vn in the first quarter of 2024, the selling price of apartments in Binh Tan district is still down nearly 30% compared to the same period in 2023. Apartment projects in this district such as An Gia Star, 8X Rainbow, Moonlight Boulevard, Moonlight Park View... are still recording a price decrease of 3.5 -7%.
In District 9, many projects still recorded an average selling price decrease of more than 30% compared to the same period. A series of projects recording price decreases in this area include Lumiere Boulevard (-2%), Centum Wealth Apartment (-14%), Ricca (-6%), Saigon Gateway (-13.5%)... compared to the selling price in early 2023.
The sharp price reduction in the suburbs is said to be influenced by projects being offered in neighboring provinces at low prices, helping to "quench" the supply thirst for Ho Chi Minh City. In addition, many new products are holding many advantages in terms of sales policies and preferential loan interest rates offered by investors. Therefore, the secondary market is facing fierce competition, making it difficult to sell quickly without reducing prices. If homeowners want to sell at a high price, they can only wait for the real estate market to enter a period of price increase and recovery.
Projects related to transport infrastructure are also well received.
Regarding the recovery time, many experts said that apartment prices in Ho Chi Minh City are likely to gradually recover in the last months of 2024 when market demand grows again and new primary supply is deployed, changing the general price level in Ho Chi Minh City in an upward direction.
Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn shared that apartments are still the dominant segment in the real estate market, especially at a time when the market is leaning towards real buying demand. This is also the type with the fastest and best recovery rate of buying demand today. Citing data from Batdongsan.com.vn, it shows that in the first 6 months of the year, Ho Chi Minh City apartments were the type with the strongest increase in searches, recording an increase of 51% compared to the same period in 2023.
Increased demand will encourage investors to be more bold in implementing sales in the coming months. Considering future supply, most of the upcoming apartment projects in Ho Chi Minh City have selling prices in the high-end segment, averaging from 55 - 85 million VND/m2. The average price increase rate of apartments in Ho Chi Minh City is currently about 5 - 7% per year. According to population and housing construction area forecasts from 2021 - 2030, Ho Chi Minh City needs an average of 22m2 of construction land per person.
By 2026 - 2030, if the population of Ho Chi Minh City increases by 12 million, it will need at least more than 100 million square meters of housing. Since the beginning of the year, the housing supply nationwide has only been 6,000 units, less than 3% of the above figure. This shows that the real demand for the Ho Chi Minh City real estate market will still be very high in the coming time.
Dang Quoc Hung
Source: https://www.congluan.vn/ly-do-khien-can-ho-chung-cu-tai-thi-truong-thu-cap-tp-hcm-chi-tang-gia-cuc-bo-post300879.html
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