Apartment prices in HCMC rise despite the Covid-19 pandemic | Business


An apartment in the new town of Thu Duc

In 2020, Nguyen Tuan Hai from Lien Chieu District in the central city of Da Nang moved to HCMC with his wife and children. He worked for a company in Tan Binh district in HCMC. Since then, he has struggled to find a house to live in. Because he wanted more living and dining space during the fourth extended outbreak last time around, he was looking to buy an apartment, hoping that during the outbreak the price will be comfortable.

He asked brokers to help him find an apartment, and eventually he found an apartment project in Tan Binh district with plenty of utilities. He could move into the apartment right away, but moaned that the price was too high compared to last year.

Therefore, he tried to find other projects in the neighboring areas, but the prices of all apartments increased by 5% to 10%. As a result, he had to borrow money from relatives to buy a 60 square meter apartment.

Likewise, apartment prices in peri-urban areas are also heating up. The current price of the Picity High Park project in Thanh Xuan 13 Street in District 12 invested by the Housing Development Investment Company fluctuates around VND 55 million (USD 2,374) square meters, an increase from VND 10 to 15 million. compared to previous sales periods. , and the apartments are almost sold.

Prices for apartments in the new town of Thu Duc. For example, BCG Land’s King Crown Infinity project at Vo Van Ngan Street has just been opened for sale in phase 1 at the beginning of December 2021, with an average price of 85 to 90 million VND, or the equivalent of 5, 5 billion VND for each apartment.

Recently, an apartment in CapitaLand’s Define luxury project in Thanh My Loi district of Thu Duc City cost VND 125 million square meters. All apartments are each priced at VND23 billion.

Likewise, the apartment market in the central area, especially in District 1, is also intensifying. Specifically, the vendors of the One Central Saigon project in Ben Thanh Quadrangle in District 1 offered the price of $ 25,000 for an apartment.

The project consisting of two towers and 55 floors is considered a branded property. Ms. Ngoc Ha, a real estate broker, revealed that the price of 25,000 square meters does not include VAT and management fees.

Spanning 90 to 275 square meters, One Central Saigon apartments cost between over $ 2 million to $ 6.8 million or the equivalent of VND 48 million to VND 160 billion.

According to the director of batdongsan.com.vn in the southern region of Dinh Minh Tuan, apartments have gone upstream of price hikes while the epidemic is still complicated, due to the advance of real estate tycoons.

Due to the insufficient supply of apartments, some investors with high financial potential have controlled the real estate market. They start to set prices much higher than the established price point. In addition, the cost of land use charges and project development costs are increasing every year, so apartment prices are constantly creating new premises.

In addition, the cost of building materials for an apartment project such as iron, steel, sand, cement is increasing, and it has not paused. This contributes to the increase in apartment prices, especially for projects for which the construction period and the progress of the work extend over several years.

Duong Thuy Dung, senior director of CBRE Vietnam, said the price of primary will continue to rise when demand steadily increases and land funds in downtown Ho Chi Minh City become increasingly scarce.

The main asking price of the high-end and mid-range segment is expected to increase by 3-7% per year. The luxury segment will experience the highest growth rate of 7-8% thanks to upcoming branded apartment projects, while the price of the affordable housing segment will not fluctuate much due to the lack of new offerings.

In the apartment market, new opening prices are expected to continue rising in the last quarter of 2021 due to pressure from land shortages and escalating costs of building materials. The rise in the price level causes demand to gradually move away from the central zone with more affordable prices. This trend is becoming increasingly evident against a backdrop of declining income due to the impact of the pandemic, Ms. Dung said.

Some real estate experts think the market is like a long compressed spring that rebounds strongly. Currently, investors have paid more attention to the real estate market in HCMC; therefore, the market recovery is predictable and will continue to gain momentum.

The chairman of the Vietnamese Association of Real Estate Agents, Nguyen Van Dinh, said the culprit behind the rising house prices is limited supply while demand is high. In the context of 2022, the upward trend in house prices will not stop.

Reports from market research companies show that in the third quarter of 2021, Ho Chi Minh City and the southern provinces continue to see apartment and townhouse prices continue to rise.

Specifically, the average asking price for apartments in Ho Chi Minh City increased four percent from the previous quarter. Thu Duc City region is the locality with the greatest increase in housing prices with an average increase of 15 to 20%.

Binh Chanh and Binh Tan districts saw a two to five percent increase in house prices, while other districts in the southern metropolis saw a two to nine percent increase in house prices on average. compared to the previous quarter.

By Duc Trung – Translated by Anh Quan


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