Market sees slow trade but slight price increases
According to market research company CB Richard Ellis Vietnam (CBRE), although some commentators said that the residential market was still overpriced and had further to fall, it had settled in the year’s first quarter. Prices in the luxury and high-end sectors remained flat, while the mid-end market and the affordable sector saw an 8.5% and 8.3% year-on-year price increase respectively.
In the first quarter, high-end real estate was worth US$1,878 per square meter and mid-end property sold for US$998 per square meter, while the affordable sector reached US$720 per square meter, said CBRE.
The company said that the stabilization was reflective of the continued demand seen across all sectors of the market.
Marc Townsend, CBRE’s managing director, said, “The modest year-on-year price increases that can be seen in the high-end, mid-end and affordable segments are reflective of what appears to be, at the present time, a healthy market”.
Townsend predicted that favorable population demographics would boost the mid-end and affordable sectors, which many developers and first-time investors have shown interest in.
Dang Hong Anh, board chairman of Saigon Thuong Tin Real Estate Co (Sacomreal), said realty firms had suffered lately, adding that the market had declined in both price and trade numbers. In addition, current prices are at their lowest, offering a chance for people who really need accommodation.
Le Tham Duong, head of HCMC Banking University’s business management department, said that banks offering loans with high interest rates had stopped some homebuyers from accessing loans. It is expected that interest rates will reduce soon. Moreover, property developers often team up with banks to offer long-term financial support to buyers.
According to Savills Vietnam, also a market research company, some 9,000 apartments were available for sale in HCMC’s primary market in the first quarter of this year, a slight decrease of about 6% compared to the previous quarter.
However, around 1,800 apartments were purchased, down nearly 50% compared to the previous quarter, Savills said.
About 43,100 apartments that are in the planning phase now will be built in the next few years. Of this sum, 26 future supply projects with an estimated 6,900 apartments are expected to launch their sale phases by the end of this year.
