Ho Chi Minh City: The number of luxury apartments is 3 times higher than cheap houses

While only one affordable project was launched in the whole year of 2019, the number of luxury apartment projects launched in Ho Chi Minh City is 6. These two segments hold 2% and 6% of total supply respectively.
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Ho Chi Minh City: The number of luxury apartments is 3 times higher than cheap houses

According to the latest newspaper of CBRE, the luxury apartment segment (with a price of 4,000 USD / m2 or more) is accounting for 6% of the total supply of apartments in the market in Ho Chi Minh City, 3 times more than the segment. cheap apartment. Specifically, the survey showed that mid-end apartments accounted for the highest proportion with 67% of total supply in 2019. Ranked second was the high-end segment, accounting for 25%.

This unit noted in the past 9 consecutive months, the affordable apartment segment was in a shortage of goods. In 2019, only one affordable project will be launched in District 8. Meanwhile, the supply of luxury apartments will come from 6 projects in District 1 and Thu Thiem.

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The average selling price of luxury apartments in Ho Chi Minh City in 2019 is more than 145 million VND / m2.

According to Ms. Duong Thuy Dung, Senior Director of CBRE Vietnam, sales of luxury apartments reached a high level of 70%. There are even projects in prime areas such as the Saigon river bank of Thu Thiem area that reaches 100% in the launches. The average selling price of this segment also recorded at the highest figure in the past 3 years, reaching 6,308 USD / m2 as of the fourth quarter of 2019, an increase of 10% compared to 2018. In which, there are many projects on The market is being offered for sale with prices of over 10,000 USD / m2.

With this price, Ho Chi Minh City is one of the markets with the most expensive primary price of luxury apartments in the region, gradually approaching markets such as Singapore with 16,000 USD / m2, Bangkok (8,500 USD / m2 ), Jakarta (nearly 4,000 USD) and Kuala Lumpur (3,000 USD / m2).

However, according to CBRE, luxury apartments in Ho Chi Minh City are still attractive to investors because of the positive price increase. This conclusion is based on statistics of successful transactions of this unit. The group of Vietnamese customers accounts for 68% of the transaction, of which many are of Generation Y (30-40 years old) and 40% are buyers to stay. Foreign customers are mainly from regions such as Korea, Singapore, Taiwan, and China.

However, experts also consider the lack of supply of cheap apartments in the luxury segment is an issue that the market should pay attention to. In fact, in the Ho Chi Minh City market, the demand for affordable housing (under $ 1,000) is always highest, while luxury apartments only serve the super-rich with a limited number of customers.

Therefore, due to the difference in the supply trend towards more luxurious apartments than cheap houses today, experts believe that the market has many potential risks to create a supply-demand deviation in the near future.