A total 9,048 new apartments were sold in the second quarter of this year across Ho Chi Minh City, slightly lower than the total 10,145 units of 2021, Cushman & Wakefield said.
Townhouse sales in the city during the period reached 173 units, 10 less than in the first quarter, with villa sales of 45 units, down about 50%, according to a report by the real estate services company released Wednesday.
The report noted that due to the country’s post-pandemic economic recovery and improved living standards, the proportion of middle-class households in HCMC has increased. Consequently, investors have adapted in time to promote suitable products to meet family needs.
Starting this April, commercial banks tightened housing loans under a State Bank of Vietnam (SBV) order on intensifying credit to limit speculation and price inflation in the country. As loans are difficult to access, individual investors are more hesitant, especially toward high-value products like townhouses and villas, leading to a decrease in sales compared to the previous quarter.
Property developers with financial strength and investors less reliant on financial leverage are less affected by the central bank’s move. Cushman & Wakefield added that in order to maintain sales, most developers have supported buyers with adjustments in payment terms in line with their partner banks’ credit policy.
The Q2 average price of apartments in HCMC ranged from $1,556 per square meter (around VND36 million) to $15,009 (about VND348 million). The average prices for villas and landed houses were $11,000 per square meters (approximately VND255 million) and $9,300 per square meters (VND216 million), respectively, the firm said.
Its report showed in the first half of this year, about 10,700 new apartments were introduced in HCMC. Mid-end supply dominated the market with about 9,600 units launched, from Beverly Solari in the Vinhomes Grand Park project, Lumiere Boulevard in Masteri Center Point, MT East Mark City, Urban Green, King Crown Infinity, and Fiato Premier.
For landed houses and villas, 194 units were launched between January and June. Thu Duc city on the outskirts of HCMC is being developed into the focus area for landed houses with two large-scale projects namely Soho Shophouse in Global City, and The Rivus Elie Saab, a villa project with a Dong Nai River view.
For next year, Cushman & Wakefield expects the HCMC residential market to be dominated by supply from the east and southern areas. By 2023, about 30,000 and 35,000 apartments would become available, the report said.
However, the landed house segment in the megacity is still experiencing a supply shortage from 2019. “We expect supply will improve over the next three years with 7,859 units to be launched, driven by new policies and the government’s commitment to infrastructure development in areas far from the city center,” the company said.