Luxury flats drive Ho Chi Minh City residential sector in Q2

High-end apartments accounted for almost 90% of Ho Chi Minh City’s total supply of flats in the second quarter of the year, real estate services firm CBRE said.

Notably, the Q2 supply in the megacity was more than 15,000 units, exceeding that of the entire 2021, according to the company’s latest report. Most of the newly-introduced apartments are in Thu Duc city, the fastest-developing area in HCMC.

An executive from property service firm DKRA said generation Y - those born between 1980 and 1994 - are the largest group among current homebuyers. They include successful young people with strict requirements in selecting a place to live, and willing to spend more money than the average Vietnamese to enjoy life.

“Therefore, many among this generation prefer luxury apartments, not just investors,” the DKRA source said.

Market experts are of the view that building high-end housing products is a clear trend due to HCMC’s fast urbanization and vision that envisages it to become a smart city by 2050.

Unlike downtown areas, Thu Duc city on HCMC’s outskirts still has a large land bank, attracting bigger property developers. Notably, the Cat Lai area in Thu Duc has a lot to offer, including infrastructure development planning and better living space.

Among large-scale urban projects under construction in Cat Lai are the Cat Lai urban area covering more than 152 hectares, and Pho Dong Village on 41 hectares.

The average price in Cat Lai is also more affordable compared to other urbanized neighborhoods. The apartment price in Cat Lai is reportedly in the range of VND60-70 million ($2,990) per square meter, lower than VND176 - 210 million in Thu Thiem and VND120 - 238 million in Thao Dien. All these locations are in Thu Duc City.

Work on the Cat Lai Bridge spanning Dong Nai River is set to begin in 2023 to further facilitate traffic between HCMC and bordering Dong Nai province. Home to Cat Lai Port, Vietnam’s busiest container terminal, the Cat Lai area is expected to become a logistics-focused township.