HCMC apartment prices up 15 pct

By Trung Tin January 20, 2022 | 06:56 pm PT

Apartment blocks along Hanoi Highway in District 2 parallel to the first metro line between Ben Thanh and Suoi Tien in the east of HCMC. Photo by VnExpress/Quynh Tran

The average prices of apartments in HCMC increased by 15 percent year-on-year in the fourth quarter of last year, the fastest rate in the country.

A Colliers Vietnam report on the apartment market said many large local developers such as Vinhomes, Nam Long, Novaland, Hung Thinh, and Masterise and all foreign ones, including Capitaland and Keppel Land, launched new products in the city in the fourth quarter.

Many of the new apartments are in the east and south of the city, where there is potential for infrastructure development.

Super luxury apartments in the city’s Thu Duc City were also on offer during the quarter.

The high-end segment led the apartment market, accounting for about 60 percent of total primary supply. Luxury apartments were being built not only in the downtown area but also elsewhere.

Thu Duc City in the east is becoming a new hub of the luxury and super luxury segment.

Mid-priced apartment projects are coming up in suburban districts such as Binh Chanh and Nha Be.

Supply of affordable apartments was lower than that of mid-priced, high-end and luxury ones.

Colliers expected more luxury, super luxury and high-end apartments than affordable ones to enter the market, mainly in the east of the city, in 2022.

Elsewhere, the prices of apartments in Hanoi rose by 5-10 percent, with most new ones being developed in the west and east of the city.

In the central city of Da Nang process rose by 5 percent.

According to Colliers, in the next 12 months apartment prices are expected to keep rising due to the escalation of land prices and construction costs.

Public spending in many infrastructure projects would directly affect the real estate market, increasing apartment supply in the near future, it forecast.