Apartment Market Lukewarm

Despite the strong growth in the past five years, the apartment market is showing signs of deceleration. According to data released by Savills Vietnam, the total number of transactions in Q1 this year dropped by 37% on quarter and 49% on-year; the selling rate in the housing market in HCMC also dropped eight percentage points on¬quarter; the number of transactions declined in all housing segments. In 2018, Savills Vietnam's data indicated a decrease in apartment transactions in the last three months of the year, with about 11,000 apartments in HCMC sold out in this period, down 27% within 12 months. According to Savills Vietnam, the fall in apartment transactions is attributed to a drop in supply. However, despite of a supply plunge, the selling prices of apartments in HCMC still climb steadily. In a CBRE Vietnam’s report, CBRE Vietnam, the average selling price of apartments on the primary market in HCMC in Q1 this year rose by 3.1% on¬quarter and 14.9% on year, which was attributed to the impact of luxury serviced apartments up for sale at record high prices, US$7,500 12,000 per square meter.