Saigon real estate prices skyrocketed

In the first 6 months of the year, newly launched housing and apartment projects in Saigon have set up a new fabulous price level.

An apartment project is located in the new high-end segment for sale in the first 10 days of June 2019 in District 7, near Phu My Bridge, costing 70 million VND (3,000 USD) per square meter for.. This is the highest price around the traffic axis near Phu My Bridge, and is approximately the same as the price per square meter in District 4, opposite District 1, 12 months ago.

Previously, at the beginning of the second quarter of 2019, a project located along the Saigon River, with luxury  marks in the center of District 1, HCMC offered products of price apartments 168 – 280 million dong (7,000 – 12,000 USD) per m2. .

In the East Saigon area, a project located near Thu Thiem bridge is offering the next batch in 2019 with the highest price of VND 150 million (6,500 USD) per m2, 15% higher than other projects in Thu Thiem urban area. Although the price is overwhelming, the products in this project have transactions on the secondary market with a difference of VND 700-800 million (30,000 – 35,000 USD) per apartment.

In fact, the lowest selling price of apartment projects in the high-end segment in District 2 has jumped to 70-80 million dong per square meter. Meanwhile, the price of apartments in Thu Duc and District 9 has no more than 25 million dong per m2. New apartments on these two locations have the lowest prices on VND 30-35 million per m2 including value added tax (VAT).

Last April, announced an online survey of apartment price movements in Ho Chi Minh City with a steady increase compared to the same period last year. According to this survey, at the beginning of the second quarter of 2019, the average price per m2 of apartments in HCM City reached VND 33.56 million per square meter, up 12% compared to the same period last year.

Earlier, in the first quarter of 2019, CBRE Vietnam said that in the first 3 months of the year, average apartment selling price in the primary market in HCM City “team” added 3.1% compared to the previous quarter and increased by 14.9 % compared to the same period last year. This increase is explained by the impact of the new luxury project offered in the first quarter with a record high price from 7,500 to 12,000 USD per m2

DKRA Vietnam Deputy General Director, Mr. Tran Hieu confirmed the scarcity of local goods in 2019, pushing real estate properties in Ho Chi Minh City to race strongly.

Mr. Hieu is concerned about the fact that new housing projects are constantly setting up new price levels that will continue from now until the end of the year until the supply is improved. “General psychology when competitors stop, businesses with goods will definitely increase prices for the sake of monopoly,” the expert said.

Chairman of Ho Chi Minh City Real Estate Association, Le Hoang Chau explained, the reason that the Saigon housing market appears to have an amazing selling price, partly due to the city authorities restricting the licensing of new projects in the period paragraph 2018-2020. On the other hand, the inspection of legal review of projects in the market also makes new supply a few beats slower (a few quarters later than the plan to sell.

This causes a scenario of a lack of local goods, leading to a rise in the price of real estate. If a project at the core of the city center has broken a record of house prices offered in Ho Chi Minh City in the past few decades, the projects farther away also have the opportunity to raise the new price level to “equal to yours as you” . “This is not a favorable reaction to the market because the situation is more frantic, the impact will spread widely,” Chau said.