Q1 Condo Sales in HCM City Drop 13% q/q: Savills

Tuan Minh

11:16 16/04/2017

BizLIVE - Apartment sales in HCM City slowed between January and March due to stagnancy from Grades A and B.

Q1 Condo Sales in HCM City Drop 13% q/q: Savills

Apartment sales in HCM City slowed in Q1. Photo: Internet

Apartment sales totaled around 8,800 units in the first quarter this year, representing a 13% decrease quarter-on-quarter (q-o-q), as Grade B sales dropped 35%, Savills Vietnam has said in a report.
Western districts 6, 8, Tan Phu and Binh Tan are upcoming development areas that focus on the low-end segment.
The report adds approximately 5,200 units were launched for sale in the quarter, a decrease of 47% q-o-q. There were more than 42,500 available units across all grades.
Future supply is forecast to reach 62,200 units. Districts 2 and 7 are expected to witness the largest future supply with approximately 21% each.
Performance of the apartment market in HCM City. 
Seven new villa/townhouse projects supplied approximately 590 dwellings in the quarter. Primary stock reached some 2,600 dwellings, down 14% q-o-q but up 25% year-on-year (y-o-y).
Sales were down 11% q-o-q but up 94% y-o-y with eastern districts accounting for 74%, of which District 9 accounted for 49% of total sales. The majority of sales came from newly launched projects with effective marketing strategies and timely construction progress.
From Q2/2017 to 2019, approximately 14,200 dwellings/plots from 44 projects are expected to enter the market. Eastern districts are expected to receive 55% of the total future supply.
Unlike the home market, the office market performance remained positive, with average gross rents rising 1% q-o-q and 2% y-o-y. The increase was attributed to limited CBD vacancy in Grades A and B. Average occupancy was 97%, stable q-o-q but up 2 ppts y-o-y.
Market-wide stock was approximately 1.6 million square meters, stable q-o-q but up 1% y-o-y, the real estate service firm said.
In the hotel market, the average occupancy was stable at 68% y-o-y. As the peak season for international arrivals, both four and five-star segments had significant improvement with occupancy increases of three ppts q-o-q, versus the three-star occupancy decrease of four ppts.