Condo Sales in HCM City Reach 5-year High: Savills

Minh Anh

16:03 14/09/2017

BizLIVE - Rising sales in Vietnam’s two largest cities indicate the continued uptrend of the local property market.

Condo Sales in HCM City Reach 5-year High: Savills

A view of Ho Chi Minh City. Photo: Zing

Apartment sales in Ho Chi Minh City hit a five-year high at 11,700 units, representing increases of 36% quarter-on-quarter (q-o-q) and 68% year-on-year (y-o-y), Savills Vietnam has said in a report.
Low-end segment accounted for 62% of total transactions while mid-end apartments sold were over 4,200 units, up 35% q-o-q and 24% y-o-y. These two segments’ performance had average absorption increase 10 percentage points (ppts) q-o-q and 14 ppts y-o-y.
Savills noted that low-end primary supply growth has been 15% per year since 2010. Given its majority affordability, this segment continued to outperform all others.
With substantial mid and high-end supply, the city’s Savills residential index came in at 93 points in the second quarter, one point higher than the previous quarter and unchanged from the same period last year.
Meanwhile, Hanoi witnessed 6,790 apartments changed hands between April and June, up 5% q-o-q and 13% y-o-y. Mid-end made up 42% of the transactions, the largest portion among the three segments.
In the second half of 2017, approximately 23,500 units from 45 projects will come online. Affordable residential projects with well-rounded facilities are forecast to catch the most attention from buyers.
The average selling price was 27.5 million dong/m2 or $1,209/m2. Increasing secondary supply is causing segment prices to ease slightly. High-end primary prices also decreased with new projects offering under average prices, Savills added.
In Q2/2017, Hanoi’s residential index was at 106.1 points, down one point q-o-q and two points y-o-y.