Pandemic fails to dampen HCMC apartment market

By Trung Tin   April 9, 2021 | 02:15 am PT
Apartment prices in HCMC in the first quarter rose by 0.7 percent from the previous quarter despite a fresh outbreak of Covid-19 during the period.
Apartments in HCMCs Thu Duc City. Photo by VnExpress/Quynh Tran.

Apartments in HCMC's Thu Duc City. Photo by VnExpress/Quynh Tran.

The average price was $2,468 per square meter, real estate consultancy Jones Lang LaSalle reported.

The pandemic outbreak at the end of January had little impact on the real estate market since it was quickly contained, it said in a note.

The number of new apartments on offer during the quarter was 3,900, a year-on-year increase of 73 percent, with over 85 percent being sold. Eighty percent of the new apartments are in the mid-priced segment.

Banks are lending at low interest rates but the pandemic is limiting the flow of funds into manufacturing and other sectors, and the property sector is the beneficiary of this confluence of factors.

JLL expects apartment supply to be at 20,000-25,000 this year, with the majority in the eastern and southern areas of the city.

Since the central part of the city has little land left for development, both apartment supply and demand have been shifting to these areas where infrastructure, especially for transport, has developed rapidly.

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