Strong recovery in HCM City property market in 2015

Strong recovery was seen in the Ho Chi Minh City housing market in 2015, particularly in the mid- and hi-end segments, according to an expert from CBRE Vietnam.

During the year, close to 42,000 apartments from 78 projects were put up for sale in the city, with nearly half in the eastern part (47%), up 122 percent from 2014, Director of CBRE Vietnam’s Research and Consulting Services Duong Thuy Dung told a meeting on January 5. 

More than 36,000 flats were sold in wholesale and retail, marking a 98% increase year-on-year. Up to 75% of total sales were those priced at VND1-VND1.3 billion (US$45,000-US$60,000). 

In the fourth quarter alone, the figure was 10,340. 

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CBRE also reported that foreigners accounted for 41% of customers seeking information on housing in Vietnam during the year, predominantly Singaporeans. 

Housing prices were on the rise, averaging US$2,012 per sq.m, up 4.4% from the previous year. 

In 2016, several projects in downtown area are expected to list an asking price of more than US$7,000 per sq.m. 

Over 45,000 apartments in 90 projects will be made available next year, with the supply of hi-end developments rising 20% compared to 2015. 

Marc Townsend, CBRE Vietnam Managing Director, said it is time to open training centres for real estate brokers in preparation for a more intense competition, especially when more foreigners join the market.