According to a report by Savills Vietnam, the supply of apartments in Ho Chi Minh City will explode in 2022 with more than 30,000 units.Most of the supply is expected to come from the Grade B and C apartment segments, however the supply Grade C apartments will gradually decrease in the coming years.
According to this unit, the central area of Ho Chi Minh City will be the most vibrant place in the market. It is expected that more than 14,600 apartments in all three grades will enter the market, especially areas in the East (District 9) and the South (District 7) of Ho Chi Minh City. At the same time, the city’s first luxury apartment project, Grand Marina, will set a new selling price milestone.
In the first 9 months of 2021, it is expected that more than 14,600 units in all three grades will enter the market. Thanks to Metro Line 1 preparing to operate as well as the progress of Ring Road 3, new urban areas in districts with high urbanization rates such as District 2, 7 and 9, are still the main source in the future, accounting for 44% market share. With the first branded apartment project – Grand Marina in District 1, the selling price of the central area is expected to reach a new high. Improved administrative procedures as well as the completion of future key infrastructure will continue to support new projects in the non-CBD. By 2024, total supply is expected to reach more than 112,000 units, of which Grade B will lead with 48% market share.
According to the Q1 report of Savills Vietnam, the primary stock in the quarter reached more than 4,900 units, down 56% QoQ and 31% YoY. The total new supply reached more than 2,200 units from 2 new projects and the next phase of 8 existing projects, down 73% QoQ and 38% YoY. In which, two new Grade B projects, Masteri Lumiere in District 2 and King Crown Infinity in Thu Duc, account for 33%. Grade B was the primary supplier in the first quarter with 57% market share. For new urban areas, districts including District 2, 7 and 9 account for 78% of Grade B primary stock.
According to the 1/2021 report of the Vietnam Real Estate Brokerage Association, in the first quarter of the year, mid-end apartments are the product line with the best absorption rate with 55.6%, high-end and low-rise apartments have Absorption rates were at a medium level (53.7% and 54.5%).
It is forecasted that the housing real estate market in the coming time, according to this unit, the country supply will increase compared to the first quarter of 2020. Specifically, in Hanoi, it is expected to have 6,000-7,000 products with a variety of segments to be offered to the market. In which, the North and West of Hanoi will account for the largest proportion. In Ho Chi Minh City, it is expected to provide about 8,000 – 10,000 products to the market. Promising a better quality market for business and real estate brokerage.
In terms of demand, according to this association, the demand for the apartment segment in Hanoi and Ho Chi Minh City still accounts for a large proportion. The mid-end segment of the 2-bedroom apartment continues to be traded the most.
General comment on the apartment market in Ho Chi Minh City in the coming time, Mr. Troy Griffiths, Deputy General Director, Savills Vietnam said that the apartment segment will be strongly promoted in 2021 when it becomes successful. The city completes and implements key infrastructure projects such as Metro Line 1 and Vanh Dai 3. In addition, the improvement of administrative procedures at all levels will contribute to attracting investors and people. buying, making the market more exciting. In addition, the market will benefit from a flourishing economy with very positive indicators. Our country’s GDP growth rate reached 4.5% in the context of the global economy facing difficulties due to a pandemic. In addition, inflation is at the lowest level in 20 years, reaching 0.3%. In addition, the total FDI into Vietnam is 10.1 billion USD, which shows the growth potential that foreign firms see in the Vietnamese market.
Ha Vy
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