Apartment prices rose by 8 percent QoQ and 27 percent YoY, while houses went up by 42 percent YoY.

A report from Cushman & Wakefield shows that apartment prices climbed to new heights in Q1. The average selling price of the entire apartment market was $3,300 per sqm, or VND75.4 million, up by 8 percent QoQ and soaring by 27 percent YoY.

While apartment prices increased sharply, demand was stable with 2,300 products bought in Q1, a decrease of 20 percent QoQ and 11 percent YoY.

The price increases are attributed to high land prices, higher building material prices, and the long period to fulfill legal procedures. Also, high-end products were launched into the market in large quantities, which pushed average prices up.

In additionto the quarterly and yearly escalation in housing prices, the asking price of apartments in HCM City have  been climbing to 10-year highs.

Regarding supply, Cushman & Wakefield predicted that HCM City may have 10,000 apartments by the end of the year, mostly in large-scale integrated urban areas. Luxury and super-luxury apartments will continue to appear. 

As many as 315,000 apartments have been supplied since 2004. Housing supply in HCM City mostly comes from suburban areas. 

Price escalation is also seen in the landed housing market segment in HCM City and neighboring provinces.

The report shows that in the first three months of the year, the average selling price in HCM City was $7,580 per sq m (VND173 million), up by 30 percent QoQ and 42 percent YoY. The average price increase is attributed to record-high prices of two projects in Thu Duc City.

As for neighboring provinces, the average price of ready-built housing was $2,630 per sqm (VND60 million), up by 6 percent QoQ and 46 percent YoY. 

As such, the average price of landed housing in HCM City is three times higher than neighboring provinces.

The total supply of landed housing in HCM City and neighboring provinces (Binh Duong, Dong Nai, Long An, Ba Ria-Vung Tau)since 2004 has reached 50,000 products, including 24,500 (49 percent) in HCM City.

Cushman & Wakefield said that the landed house supply in adjacent provinces will be higher than in HCM City as a result of the trend of investments shifting to satellite urban areas where new transport infrastructure is developed.

Gia Hung