High-end segment to continue driving HCM City apartment market
The luxury and mid-priced apartment segments will continue to lead the market in 2022, while affordable apartments will remain scarce, according to property consultant DKRA Vietnam Joint Stock Company.
According to the company’s report on the housing market in Ho Chi Minh City and surrounding provinces in 2021, there were 41 apartment projects with about 21,138 units, mostly in HCM City and Binh Duong province, entering the market. They sold 17,122 units.
In HCM City, supply and demand decreased sharply from 2020 and fell to the lowest levels since 2015.
Luxury apartments in the city reached new price levels of nearly VND400 million (US$17,555) per square metre.
According to another real estate service provider Cushman & Wakefield, 25,000-30,000 new apartments are expected to enter the market in HCM City this year, mostly in the luxury and high-end segments.
The supply would mostly be in the new Thu Duc City, and online sales channels would remain popular.
The average selling price of luxury and high-end apartments topped VND143.6 million (US$6,266) per square metre in the fourth quarter of 2021, up 23% year-on-year.
Mid-range apartments cost VND56.7 million (US$2,474) and affordable units cost VND40.9 million (US$1,785), up 15% and 26 percent year-on-year.
The total number of new and old apartments sold last quarter was nearly 3,000, with mid-range apartments accounting for 82% and high-end ones for 11 percent, according to Cushman & Wakefield.
No new affordable project was sold.
High-end apartments are those in prime locations and costing above US$3,000, mid-range apartments are in convenient locations and cost US$1,800 – 3,000, and the affordable segment sells at below US$1,800.
