As the market that accounts for the majority of housing demand, Ho Chi Minh City is falling into a thirst for housing. In addition to the lack of new project supply, this market is also thirsty for affordable products.
Under 40 million must go to Binh Duong to buy a house
"Now, if you want to buy an apartment under 40 million VND/m2, you have to go to Binh Duong, Ho Chi Minh City at this price range, you can only buy old apartments or social houses." Mr. Tran Gia Huy, an electrical engineer working in Ho Chi Minh City. Thu Duc shared when he struggled to find a house in Saigon recently. Huy said that with his family's financial reach, he "dodged" all the hot areas of the city. Thu Duc, drifted to the outskirts of the city to buy a house, but still haven't seen any new projects under 40 million/m2. In the first phase of 2020, he heard about an apartment project in the area of District 9 (old) for sale for about 38 million VND/m2, trying to find a way to save a purchase, but at that time the investor did not accept it. deposit because the project has not been implemented. Now when it is about to start construction, this project has a new price of 47 million VND/m2.The apartment market in Ho Chi Minh City is thirsty for new supply, especially the product line priced below 40 million VND/m2.
The market report of the third quarter of 2021 of Batdongsan.com.vn shows that the total supply of housing products for sale on the Ho Chi Minh City market is decreasing by 81%. In which, the number of apartments for sale decreased by 78%. Similarly, apartment transactions in Ho Chi Minh City also decreased by 41% compared to the second quarter of 2021 due to the absence of new projects. In the first six months of the year alone, the city's total offering supply was only 5,600 units, 9% lower than the same period in 2020.
Previously, a report from Ho Chi Minh City Department of Construction indicated that in the first 6 months of the year, the city had 7 projects eligible to sell houses formed in the future with 3,002 apartments down 40% compared to the first quarter of this year. 2021 and 14.3% compared to the second quarter of 2020. The most worrying thing is that the output of affordable housing only accounts for 1% of the basket in the context of unusually high house prices.
A recent survey by Batdongsan.com.vn also shows that housing demand in the HCMC market is very high. More than 95% of users share that they want to buy a house with a price range of about 40 million VND/m2. However, in Ho Chi Minh City, it is difficult to find houses of this price range. Apartment prices in Ho Chi Minh City in the first 9 months of 2021 continued to increase by more than 4-6% over the same period last year, currently at an average of 43-45 million VND/m2 with mid-range apartments and about 59 -63 million VND/m2 with high-class type. Areas that recorded the strongest increase in apartment prices in the last quarter such as Ho Chi Minh City. Thu Duc, Saigon South, Binh Thanh, Tan Phu. Especially in Thu Duc city, the average price in this area is currently about 50 million VND/m2, some newly launched projects have reached 80-100 million VND/m2.
Will the new supply quench the market's thirst?
The Ho Chi Minh City apartment market is relying on part-time open supply to help quench the thirst for housing. However, in the context of limited land fund, escalating costs and increased risk of inflation, not to mention the low number of deployed projects, the selling prices of most apartments in Ho Chi Minh City in this period and the following years. is expected to continue the upward trend. The housing situation in terms of high-end housing is difficult to change. It is increasingly difficult for homebuyers to find apartments priced below 40 million VND/m2.
Surveying the price of many projects being offered for sale in Ho Chi Minh City at present, products priced at about 40 million VND/m2 are quite rare, most projects are priced at nearly 45-50 million VND/m2. Specifically, in the Southwest area, many new projects are for sale at prices above 40 million VND/m2, such as Westgate apartment building (Binh Chanh) of An Gia Group, which has the lowest price from 40 million VND/m2; Hung Thinh Corp opened for sale the Moonligt Central Point project in Binh Tan with the price from 50 million VND/m2. Similarly, the Picity High Park project (District 12) of Pi Group as an investor is for sale blocks 1 and 2 with prices ranging from 46-57 million VND/m2. Flora Mizuki (Binh Chanh) apartment of Nam Long is also priced at more than 40 million VND/m2.
City. Thu Duc is an area that records high demand for housing but is also the market with the fastest real estate price growth in Ho Chi Minh City.
Particularly in Thu Duc City, apartment prices are keeping high. King Grown Infinity project (Thu Duc) offers phase 2 for nearly 100 million VND/m2, Vinhome Grand Park (District 9) launches a new subdivision with prices ranging from 65 million VND/m2. Kusto Home has just started the Urban Green project with a scale of 735 apartments located in Hiep Binh Phuoc area with an expected selling price of VND 50-55 million/m2. Some smaller-scale projects that are planning to open for sale in the new phase also have an average price range of 40-45 million VND/m2. Most of them exceed the price that many people wishing to settle in this market can reach.
However, City. Thu Duc also has a new project with a price range of less than 40 million VND/m2, which is MT Eastmark City, developed by Rio Land. This is a rare large-scale project deployed in Ho Chi Minh City. Thu Duc in the past 2 years includes 7 apartment blocks, with nearly 2,000 products in the overall planning of a land area of more than 20 hectares, located on 3 fronts of Ring Road 3, Lo Lu and Truong Luu in the city center. . Thu Duc. This is an urban area developed according to the high-class urban model for experts, but with an expected selling price of only about 36 million VND/m2. This price is considered a big surprise in the context of the scarcity of housing supply in Ho Chi Minh City and the escalating cost of project implementation.
According to a representative of the project developer, in the context of high-end apartment prices in Ho Chi Minh City, currently about 59-80 million VND/m2, especially in the city area. Thu Duc, Binh Duong... priced from 45 -60 million/m2, the reason why MT Eastmark City offers the market with an expected price of only 36 million dong/m2 is because the business has accumulated a land fund from cheap prices. and accept a moderate profit margin to share with customers.