CBRE Company Limited (Vietnam) has just announced a report on the real estate market focus for the third quarter of 2024 in Ho Chi Minh City , thereby showing the differentiation between different real estate segments but all have in common the increase in supply as well as liquidity.
Supply of townhouses and villas increased dramatically
Regarding the townhouse/villa market in Ho Chi Minh City, CBRE's report recorded 132 new townhouses for sale from a project in Binh Chanh district, more than 1 hour away from the city center, with a primary asking price of about 90 million VND/m2 of land.
With this new supply, the average primary market price this quarter decreased slightly by 1% compared to the previous quarter, reaching over VND300 million/m2 of land. The average secondary market price remained at over VND140 million/m2 of land.
The average selling price of villas and townhouses in Ho Chi Minh City reached over 300 million VND/m2 of land.
In the third quarter of 2024, the townhouse/villa market in Ho Chi Minh City recorded more than 150 successful transactions, mainly from newly opened projects and some projects with primary inventory, mainly concentrated in Thu Duc City and District 7.
In the last 3 months of 2024, the land-attached real estate market in Ho Chi Minh City is expected to welcome more than 300 new units for sale, contributing to bringing the total supply of newly launched low-rise houses for sale this year to nearly 600 units.
Compared to only 40 units in the whole of 2023, the new low-rise supply in Ho Chi Minh City this year has increased significantly, mainly from new projects located on the edge of the East and West of the city, so the expected selling price is lower than the average market price.
Many real estate projects with legal problems are "untied"
For the apartment market, new supply or projects that have been opened for sale are all located in districts far from the center.
Although the official supply for sale is low, according to CBRE, the bright spot of the Ho Chi Minh City market in the quarter is that the market has nearly 300 apartments re-offered from projects that have temporarily stopped selling in the past 1-2 years in Thu Duc City, District 7 and about 2,700 apartments that have not officially opened for sale have started accepting reservations, expected to open for sale in the near future.
Projects restarted this quarter such as D-Homme (District 6), D-Aqua (District 8) and Lavida Plus (District 7) all adjusted their primary selling prices up by 10% - 30% compared to the previous phase's selling prices.
In addition, by the end of the third quarter of 2024, projects with previous legal problems such as the Gem Riverside project (Dat Xanh Homes Riverside) in Thu Duc City or The Forest Gem project (new name is Central Home Saigon) in Binh Thanh are also preparing to restart this year.
"This is considered a positive sign for the progress of legal clearance of real estate projects in Ho Chi Minh City since the number of newly licensed projects in Ho Chi Minh City has decreased sharply since 2019," the report said.
Many legally entangled projects in Ho Chi Minh City have been "untied".
As of Q3/2024, the primary selling price of apartments in Ho Chi Minh City reached VND66 million/m2 of net area, up 4% quarter-on-quarter and nearly 8% year-on-year, largely due to old projects adjusting their selling prices higher in the new opening phase.
The secondary market in Ho Chi Minh City continued to increase slightly this quarter, increasing by an average of 3% quarter-on-quarter and 5% year-on-year, reaching an average of VND48 million/m2 of net area in the third quarter of 2024.
Most apartment segments recorded an increase in secondary selling prices this quarter, of which the luxury apartment segment had the most outstanding annual transfer price increase rate with selling prices in the third quarter of 2024 likely to increase by nearly 10% over the same period last year.
Most projects with remaining inventory for sale recorded positive sales rates, with more than 2,000 apartments successfully transacted in the quarter, nearly double that of the previous quarter.
Some projects in the booking stage with high expected selling prices also cause buyers to consider neighboring projects with primary products for sale of similar quality but lower selling prices and early handover.
In the coming time, Ho Chi Minh City is expected to have about 3,000 new apartments for sale in the last 3 months of 2024, equivalent to approximately 5,000 new apartments for sale for the whole year of 2024.
Compared to last year, the HCMC apartment market is expected to decrease in supply as most large-scale future supply has postponed its opening date to 2025.
Some projects that plan to resume sales after legal obstacles are cleared are also expected to be implemented this year but officially launched next year. In 2025, the market is expected to have nearly 10,000 new apartments for sale, nearly double that of 2024.
Ho Chi Minh City real estate market "makes waves" shifting to the suburbs.
Commenting on the general housing market in Ho Chi Minh City, Ms. Duong Thuy Dung - Managing Director of CBRE Vietnam said: "A trend that is not new but is becoming increasingly clear that we see is the increasing interest of investors and home buyers in neighboring markets such as Binh Duong and Long An with more and more housing projects being implemented around the border areas between provinces and Ho Chi Minh City.
In the first 9 months of 2024, the apartment market in Binh Duong alone had more than 3,000 new apartments for sale, nearly double the number of new apartments for sale in Ho Chi Minh City in 9 months.
With the selling price of apartments in Binh Duong only 50% - 70% compared to the selling price in Ho Chi Minh City, in the context of housing prices in Ho Chi Minh City continuing to increase due to high demand and limited new supply, home buyers are willing to move further to be able to own a house."
Source: https://www.nguoiduatin.vn/thi-truong-bat-dong-san-tphcm-noi-len-lan-song-chuyen-dich-ve-vung-ven-204241009145927489.htm
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