Apartments priced at $17,000 per sqm spotted in HCMC

Ho Chi Minh City recorded apartments with prices up to VND425 million ($17,000) per square meter in the first quarter of this year, according to property consultancy firm DKRA Group.

Meanwhile, the lowest apartment price in the southern economic hub was VND30 million ($1,200) per sqm, the firm said in a report.

In Binh Duong province which neighbors HCMC, the highest price was VND59 million ($2,364) per sqm, while the lowest was VND30 million. The respective figures were VND51 million ($2,043) and VND35 million in Ba Ria-Vung Tau province; VND35 million ($1,400) and VND31 million in Dong Nai; and VND24 million ($968) and VND21 million in Long An.

New apartments were mainly found in the western and southern parts of HCMC and Binh Duong province, with 61.2% and 34.4%, respectively. Most of the new supply was in the grade A segment.

The report showed that in the apartment segment, the primary market had 122 projects but only one new development, offering 12,967 units, down 1% compared to the same period in 2023 and 9.7% compared to Q4/2023. New sales reached 1,784 units, or 14% of the total offerings, an increase of 32% year-on-year.

DRKA assessed that market liquidity saw clear improvements, especially after the Lunar New Year holiday (February 8-14), soaring 31.8% over the same period in 2023. Transactions were mainly recorded in mid-end projects priced from VND40-55 million ($1,600-2,200) per sqm in HCMC, or from VND30-35 million per sqm in Binh Duong. Most of the projects boasted complete legality, fast construction progress, and convenient connections to the city center.

Primary selling prices recorded a slight increase of 2-5% compared to the end of 2023. Developers stimulated demand with discounts for quick payment and grace periods for principal and interest.

Meanwhile, demand for townhouses and villas in HCMC and its surrounding areas remained low but showed positive signs compared to the end of 2023.

According to DKRA, primary supply and sales in this segment increased by 11% and 43%, respectively, from the previous quarter. HCMC and Dong Nai took the lead in primary supply with a rate of 75.9%.

Transactions were seen mainly in the product group with prices below VND10 billion ($400,000) per unit. The primary price level was still high, ranging from VND4.1-27.8 billion ($1.12 million) per unit. Despite low demand, the secondary market recorded an average price increase of about 2-4% compared to the end of last year.

In Q1, only a few products were available for sale in HCMC, mostly in the high-end segment.

For example, in Thu Duc city, Gamuda Land's Eaton Park was launched for sale for up to VND120 million ($4,800) per sqm. In District 7, The Aurora, a new apartment project by Phu My Hung Development Corporation, offered products priced from VND90 million per sqm.

Also in Thu Duc, the selling price at The Global City apartments is expected to range from VND80-110 million ($4,400) per sqm, while garden townhouses will be priced from VND15-20 billion ($801,444), and villas and shophouses from VND40-50 billion ($2 million) per unit. The Opus One project of real estate giant Vinhomes is expected to cost from VND120 million ($4,800) per sqm.