Propery sales in HCMC double in Nov on slight supply hike

Primary property sales in Ho Chi Minh City, Vietnam’s southern metropolis, reached 2,022 units in November, double that of the same month last year, according to a report by DKRA Consulting.

The HCMC primary real estate market recorded a supply of 113 projects last month, up 5.4% year-on-year and accounting for 60.6% of the southern region's total.

Primary apartment selling prices in HCMC ranged from VND37 million ($1,460) to VND493 million ($19,430) per square meter. The highest price in Binh Duong province is VND60 million, and the lowest VND39 million.

The respective figures are VND61 million and VND35 million for Ba Ria-Vung Tau province, VND41 million and VND33 million for Dong Nai, and VND29 million and VND21 million for Long An.

Local overall demand showed signs of recovery, double that of the same period last year, Vo Hong Thang, investment director at DKRA Group, said. Most transactions were concentrated in newly launched projects in the city, he added.

Tier-A apartments, priced at over VND50 million ($1,970) per sqm, dominated the primary supply with a share of 47.7%. Projects located in the eastern part of the city commanded higher selling prices, typically ranging from VND85-130 million ($3,350-$5,130) per sqm.

Looking ahead, new supply entering the market in December is expected to continue increasing, with tier-A and high-end projects likely to dominate, Thang predicted.

Commenting on the real estate market this year, Hoang Hai, director of the Department of Housing and Real Estate Market Management under the Ministry of Construction, noted that despite numerous challenges, the market has shown signs of recovery by the end of the year.

He attributed this improvement to the stable economy and the government’s support policies, including three new real estate laws that took effect in August.

However, the real estate market has also experienced abrupt price surges in certain areas and segments, fuelled by rising land-related costs, speculation, and price inflation by real estate brokers, Hai noted.

Moreover, a persistent supply shortage has exacerbated the issue, as many real estate developers have had their projects suspended due to legal obstacles and financial difficulties, Hai added.