Villas, townhouses under $200K disappearing in HCMC

Low-rise buildings in Ho Chi Minh City. Photo by Read/Quynh Tran

HCMC will not have low-rise properties priced under VND5 billion ($200,000) by 2026 as supply dwindles, according to a recent report.

In fact, only 10% of such properties would be priced under VND10 billion by then, property consultancy Savills Vietnam said in a note on the HCMC market.
“With limited land and infrastructure support, housing prices in HCMC have tripled in the primary market and doubled in the secondary market in the last five years.”
Consumers were looking to neighboring provinces for competitive options.
By 2026 some 85% of low-rise properties in Binh Duong Province and 55% in Dong Nai would still be priced at under VND10 billion.
New supply of villas, townhouses and shophouses remained low in the second quarter due to scarcity of lands and legal issues faced by developers which had made them wary.
Primary stock of villas and townhouses had fallen by 33% year-on-year to 668 units, with 77% of them priced at over VND30 billion.
Their sales had plummeted by 36% to 72 as affordable products in neighboring provinces lured buyers.
Products priced at above VND30 billion had an absorption rate of just 6%.
In the remainder of this year 883 new units were expected to be launched, mostly at existing projects.
Products priced above VND20 billion would make up 80% of supply.
By 2026 supply was expected to reach 4,663 units, mostly in Thu Duc City and Binh Chanh and Nha Be districts.

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