HCM City condo prices rise

Condo prices are rising in HCM City.

Online newspaper sggp.org.vn said they had been climbing for the last two months, and cited the example of Akari City in Binh Tan District.

Developed by Nam Long Group, the project saw its first phase finished last December. At that moment, price of the project jumped to VND40-43 million (US$1,700) per sq.m from VND35-38 million ($1,650) per sq.m.

The prices of other apartment projects in Binh Tan have also appreciated.

Moonlight Centre Point developed by Hung Thinh Land jumped by 15 per cent since the beginning of last year to VND57-67 million ($2,500) per square metre.

A report by property market research company JLL said in the last quarter the average primary selling price was US$2,700 per square metre, up 18 per cent quarter on quarter and 10.5 per cent year-on-year.

However, while increasing prices, the company said developers also offered attractive payment policies such as paying only 15 per cent of apartment value until handover time, discounts of up to 7 per cent and gifts.

JLL said the number of transactions last quarter topped 5,800 units, a 66.7 per cent year-on-year rise, as the pandemic was controlled and buyers could attend launch events in person.

Pent-up demand as a result of various restrictions during the social distancing period caused an increase of nearly 93 per cent in sales during the quarter, it said.

Speaking on the outlook for this year JLL said the market recovered after strict isolation social distancing.

Many projects are under relaunch and are likely to bring 32,400 units of new supply onto the market in 2022.

Sales are expected to grow strongly thanks to the existing stable demand and digital sales channels, it said.

The building materials supply chain had been interrupted by the impact of the pandemic and would continue to affect prices, it warned.

The limited land availability in the inner city would cause the development of commercial housing to move to suburban districts and neighbouring provinces, it added.

DKRA Vietnam, a real-estate service provider, said this year some 30,000 condos would be sold, mostly in Thu Duc City. 

Source: Vietstock.