Lowest supply in the past 5 years, selling price from 30 billion VND/unit
Since the beginning of 2024 until now, Mr. H., a real estate broker specializing in townhouses and villas in Ho Chi Minh City, said that there have been no transactions. According to him, his team is holding a basket of over 20 villas and townhouses that owners have put up for sale, with prices ranging from 22-30 billion VND/unit.
Mr. H. said that many townhouses in the basket have been offered for sale by him and his colleagues since before the Lunar New Year. However, up to now, there have been no buyers who are truly interested. Occasionally, there are a few brokers who inquire about the prices.
Mr. H.’s basket includes some townhouses located in a urban area in Thu Duc City. For example, a townhouse with 1 ground floor and 3 floors, with a land area of about 147m2, and a facade of over 30m, has a selling price of 30 billion VND.
In this urban area, there is also a townhouse construction project with a similar scale, but the land area is about 140m2, being offered for sale at 22.5 billion VND.
“These are all houses that have been completed, and buyers only need to complete the notarization of ownership transfer to move in immediately. Although the prices are not as high as before the Covid-19 pandemic, the price of 160 million VND/m2 in this area is still considered high,” Mr. H. said.
In the whole of Ho Chi Minh City, there were 1,253 townhouse transactions in 2023. Photo: Mr. Phuong |
According to the survey by the reporter, the majority of completed townhouse products being offered for sale on the market are secondary products, as the new supply in the past 3 years has been very limited.
According to the statistics of the Ho Chi Minh City Department of Construction, in 2023, Ho Chi Minh City has only 1,253 low-rise houses in projects that have been confirmed to meet the conditions for housing sales formation in the future.
In the fourth quarter of 2023, there seems to be no supply of low-rise houses, with only 3,722 apartments being put on the market and all of them are in the high-end segment. In terms of transaction volume, in the whole of 2023, there were only 1,253 townhouse transactions in Ho Chi Minh City.
Landed houses priced at 10 billion VND primarily concentrated in neighboring provinces of Ho Chi Minh City
A survey conducted by a market research firm showed that in 2023, the activity level of the townhouse and villa market in Ho Chi Minh City was at its lowest point in the past 5 years. The total primary supply was nearly 1,000 products. The absorption rate only reached 30%, and the selling price was commonly around 30 billion VND/unit.
According to this market research firm, the primary supply of villas and townhouses in Ho Chi Minh City in the past year mainly came from high-priced inventories. Due to the limited availability of affordable housing supply, products with selling prices from 30 billion VND/unit dominated the market, accounting for 67% of the supply.
To explain this situation, representatives from Savills Vietnam believed that the reason lies in the capital mobilization by businesses being affected by the process of inspecting real estate bond issuances. Additionally, there is an impact from the global economic and political developments on the domestic economy, which has caused a slowdown in both business and household incomes and cash flow.
In addition, the scarcity of land funds in the inner area of Ho Chi Minh City has pushed up housing prices. With limited supply and developers targeting the high-end segment, the target audience has narrowed and the absorption rate has significantly decreased.
Experts from Savills Vietnam assessed that the decline of low-rise houses in Ho Chi Minh City is reflecting the right cycle, gradually leading to a decrease in the supply of this type of housing in the inner area.
“Due to its scarcity, the focus will be on high-end segments and wealthy buyers. According to the urban development orientation until 2030, Ho Chi Minh City will concentrate on developing high-rise segments to optimize land funds and meet the large housing demand of the city,” shared a Savills Vietnam expert.
Regarding the low-rise housing market in neighboring provinces, according to the reporter’s survey, the common selling price of this type of housing in Dong Nai or Binh Duong is only 1/3 of Ho Chi Minh City.
Specifically, the majority of the supply of low-rise houses in Binh Duong is being offered at prices below 10 billion VND/unit. Meanwhile, many landed houses in Dong Nai are being sold at prices ranging from 5 – 10 billion VND/unit, and about 30% of the supply has prices from 10-20 billion VND/unit.
Mr. Phuong
