It is forecasted that the real estate market of Ho Chi Minh city will be flooded with apartment supply by 2021

According to JLL Vietnam, it is expected that about 6,000 apartments will officially be opened for sale in the fourth quarter of 2020, helping the total launch of 2020 to reach more than 31,000 units.

According to the forecast, the future supply in 2020 will fluctuate quite sharply, ranging from 40,000 to 50,000 units. In particular, according to this research unit, demand still increased sharply in the mid-end segment. Projects with transaction prices from US $ 1,200-1,700 / m2 attract the most buyers.

In the third quarter of 2020, there were 17,248 units sold from 14 projects. Meanwhile, the large-scale project Vinhomes Grand Park accounted for 60% of quarter-sales. More than 10,000 units were sold out when this project officially signed a sales contract in the third quarter of 2020.

Demand for high-end apartments is slowing down, while investment buyers are shifting their investment trend from High-end apartments to Townhouses or Villas to achieve a higher rate of return with equivalent investment capital.

Except for the supply from the Vinhomes Grand Park project, the new supply in the market is generally limited due to the longer approval process of construction approval.

Due to the increasingly tight policy of the government, which related to land approvals and construction permits, JLL believes that future supply in 2020 will fluctuate sharply, ranging from 40,000 to 50,000 apartments.

According to JLL, the selling price of apartments continues to set new price ground. The average primary price of the whole market reached USD 2,067 / m2, up 23.8% year on year. The high price segment reached a new price level, at USD 5,320 per m2, increased 64.9% year on year.

This phenomenon in which price is increasing, is because of the lack of new supply. The primary selling price per project increased by an average of 20.6% year on year, mainly driven by the high price segment. The change in links in high-end projects is 34.7% year on year and 16% year on year on affordable and mid-end projects.

In particular, the demand and price increase will largely follow a positive trend in affordable and mid-end projects. High-end and affordable projects will continue to see a decline in demand, especially in investment demand. The main reason is that the rental performance and the prospect of resale profit margin seem less attractive when the selling price reaches a newly recorded high level.

Ha Vy

According to Nhip song kinh te


It is forecasted that the real estate market of Ho Chi Minh city will be flooded with apartment supply by 2021

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