HCMC apartment supply recovers in May

By Dat Nguyen   June 8, 2020 | 03:09 pm GMT+7
HCMC apartment supply recovers in May
Apartment buildings near the Saigon River in Ho Chi Minh City. Photo by Shutterstock/KernelNguyen.

Ho Chi Minh City apartment supply in May showed signs of recovery from Covid-19 impacts with a six-fold increase over April.

Eight apartment projects contributed 1,168 units to the market, compared to just 200 units recorded in April, according to real estate market research firm DKRA Vietnam.

Of these, 851 were bought, compared to 55 in April. Most of the new projects are located in the eastern and southern part of the city.

As Vietnam successfully contained the virus and eased social distancing measures in April, the market showed signs of recovery in May, the report said.

However, many developers have not fully launched all their units due to uncertainties amid the ongoing pandemic, it added.

The majority of the new units, 86 percent, were of Grade A and Grade B apartments, while the rest were in the luxury category. There was no Grade C apartment, which is the affordable category.

The luxury segment recorded an absorption rate of 50 percent, compared to the whole market’s 73 percent, showing that buyers were shying away from expensive units and focusing on lower and less risky products as the market remains unpredictable, DKRA analysts said.

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