02:52 (GMT +7) - Monday 25/09/2017

Property

HCMC townhouse/villa segment sees high Q1 growth

Released at: 13:52, 29/04/2017

HCMC townhouse/villa segment sees high Q1 growth

Photo: Phu My Hung villa

The supply of townhouses and villas in HCMC increased 62% qoq, Collier International's Q1 report notes.

by Hong Nhung

The Ho Chi Minh City market received a primary supply of around 3,500 units from 50 new projects in the first three months of this year, including 1,200 villas and 2,300 townhouses. The new supply was up 62 per cent quarter-on-quarter, with more than 500 units from five villas and townhouses entering the market, according to the latest Vietnam Quarterly Knowledge Report in Q1/2017 released by Collier International.

The transaction rate in the segment reached 1,000 units, up 6 per cent quarter-on-quarter. Projects with completed built-in infrastructure and utilities developed by reputable developers have a sales rate of up to 90 per cent.

In the secondary market, sale prices increased by between 1.5 and 3 per cent quarter-on-quarter, depending on the project’s location. Prices are expected to continue increasing due to improved buyer demand and psychology.

The second quarter will see the arrival of 16 new projects, with most supply coming from the eastern and southern areas of the city, in which District 9 will lead, accounting for 35 per cent with about 900 units.

Collier International commented that in the past two years, districts in the eastern area of the city led the supply of real estate attached to land. Infrastructure development and rapid urbanization have created investor confidence in the area. Many people have been looking to buy townhouses with an average land area of 90-150 sq m. These customers prefer real estate products with an average land area of less than VND6 billion ($263,000) with internal facilities, good security, and convenient access to the city center.

Mr. Vo Van Anh Tuan, Deputy General Director of the Thang Long Real Estate JSC, said that the eastern area has been attractive not only to investors but also to buyers.

The area’s real estate benefited from synchronous infrastructure development, convenient transport links with the Long Thanh - Dau Giay Expressway, the upcoming urban railway line, and new bridges being built. The expansion of National Highway No.13 from Thu Duc to southern provinces and the central highlands will create uninterrupted conditions for the city’s northeastern gateway.

Rapid infrastructure development has also significantly cut travel times from suburbs to the city center and encouraged customers to purchase houses in coastal projects.

Contrary to the optimistic situation in townhouses and villas, apartment trade fell 50 per cent in the first quarter against the previous quarter, with 6,000 successful transactions. The number of apartments for sale fell 40 per cent, to around 4,000.

Most new supply comes from subsequent sale openings of existing projects. Eastern and southern areas of the city continue to lead in supply thanks to strong growing potential from major infrastructure development projects and large land reserves.

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