HCMC records lowest apartment sales rate since 2019

By Vu Le October 30, 2022 | 06:36 pm PT

Buildings are seen in southern Ho Chi Minh City. Photo by VnExpress/Quynh Tran

Only 990 apartments were sold in HCMC in the third quarter as the absorption rate fell to 15%, the lowest since 2019, according to Savills Vietnam.

Inventories were the highest since 2019 at 4,400, its third quarter report on the apartment segment in the city said.

According to DKRA Vietnam, 31 were projects launched with 4,873 apartments during the quarter, down 64% from the second quarter.

Surveys by VnExpress found many developers in the city having large inventories and needing to intensify marketing and promotions to attract buyers.

Duong Thuy Dung, executive director of CBRE Vietnam, expected challenges in the last quarter like low supply, especially of mid-priced and affordable apartments and lack of funds.

Besides, news about possible legal changes such as related to apartment ownership period, application of property tax and investigations into violations by developers could have an adverse psychological effect on buyers, she said.

However, housing absorption would be reasonably good due to limited supply and continuing demand, she said.

Investors should aim for medium- and long-term investment with clear plans for cash flow, and limiting borrowing, she added.