Apartment supply in Ho Chi Minh City is the lowest in 10 years

On January 17, Savills Vietnam released an overview report on the real estate market in 2023. Accordingly, the supply of apartments in Ho Chi Minh City is at its lowest level in the past 10 years.

The supply of primary apartments will only reach 10,700 units in 2023. In the context of scarce supply and expensive housing prices, the market recorded only 6,200 transactions in the year. Projects with good liquidity are mainly in the housing segment in the price range of 2 - 2.5 billion VND/unit.

Apartment supply in Ho Chi Minh City has decreased the most in the past 10 years. (Photo: B.L) — Apartment supply in Ho Chi Minh City has decreased the most in the past 10 years. (Photo: BL)

Mr. Troy Griffiths, Deputy General Director of Savills Vietnam, shared that the selling price of primary apartments in Ho Chi Minh City is returning to the same level as in 2020, which is an average of only about 69 million VND/m2 of net area, down 36% quarter-on-quarter and down 45% year-on-year.

“The total return on apartment investment in 2023 decreased by 1.7 percentage points compared to the same period last year. Although the total return has decreased over the past 5 years, it is still higher than the deposit interest rate, which shows that apartments are still a profitable investment channel,” said Mr. Troy Griffiths.

For the villa - townhouse segment, Savills' research shows that the primary supply of this segment in Ho Chi Minh City has decreased by 40% in 2023, to only 993 units. This is the lowest level in the past 5 years. Products priced above 30 billion VND account for 73% of the market share.

The absorption rate of villas and townhouses in Ho Chi Minh City in 2023 decreased by 34 percentage points to 29%. The number of houses sold reached only 286 units, down 73% year-on-year.

Many projects in Ho Chi Minh City have house prices of several tens of billions of VND per unit. (Photo: K.D)

Many real estate experts say that the real estate market is unlikely to improve as investors continue to focus on high-end products costing tens of billions of dong. Meanwhile, affordable housing is scarce.

Experts say that affordable housing is the product with the best liquidity in the present and future.

DAI VIET

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