(NLDO) - Affordable apartments in Ho Chi Minh City are becoming scarce, causing buyers with moderate budgets to look to Binh Duong, Dong Nai, and Long An.
At the recent Q4/2024 Real Estate Market Summary Report and 2025 Forecast, Mr. Troy Griffiths, Deputy General Director of Savills Vietnam, said that both supply and market sentiment improved in Q4/2024, but selling prices remained high. Demand continued to shift to neighboring provinces with more affordable prices and infrastructure investment and development.
Accordingly, the apartment segment in Ho Chi Minh City recorded an improvement but was still limited. Primary supply reached 6,500 units, up 35% quarter-on-quarter. New supply included 2,700 units, up 243% quarter-on-quarter but down 3% year-on-year.
In 2024, primary supply will increase by 10% year-on-year to nearly 11,900 units. Affordable housing remains scarce. Grade C supply will decrease by 45% year-on-year from 2020 to 1,300 units in 2024, the lowest level in a decade. The number of apartments priced below VND50 million/ m2 will decrease by 20%, accounting for only 15% of total primary supply.
Luxury apartments account for a large proportion. Illustration photo: Son Nhung
In particular, according to Mr. Troy Griffiths, high-end projects still lead the market when sales in Q4/2024 accounted for 2,700 transactions, up 43% quarter-on-quarter, down 10% year-on-year. The absorption rate reached 42%, up 2 percentage points quarter-on-quarter and 1 percentage point year-on-year.
Sales of luxury apartments priced above VND80 million/ m2 increased by 561% quarter-on-quarter and 2,118% year-on-year, accounting for 76% of total transactions.
Notably, in 2024, apartments priced at 50% or less accounted for only 18% of total sales, a sharp decrease compared to 2020 when this segment accounted for 50% of sales.
The scarcity of affordable apartments in Ho Chi Minh City has forced buyers with moderate budgets to look to neighboring markets such as Binh Duong, Dong Nai, and Long An, where prices range from only VND30-40 million/ m2 .
In the villa and townhouse segment, according to Ms. Giang Huynh, Director of Research and S22M Savills, in Ho Chi Minh City in 2024, there will be only 197 apartments for sale from 2 projects. The primary supply is 970 units, down 2% year-on-year. No new supply during the year caused the primary supply to decrease by 20% quarter-on-quarter and year-on-year, down to 613 units. The segment over 30 billion VND/unit continues to dominate with 74% market share.
It is expected that in 2025, there will be 10,000 apartments for sale, of which Class B apartments will account for 54%. By 2027, the supply will increase to 46,000 units, coming from 69 projects. Thu Duc City is expected to account for 52%, Binh Tan 11% and District 7 10% of the supply.
Source: https://nld.com.vn/tp-hcm-so-luong-can-ho-cao-cap-ban-ra-tang-vot-196250212171714104.htm
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