No affordable apartments launched in HCMC

By Trung Tin   December 2, 2021 | 04:32 pm PT
No affordable apartments launched in HCMC
Apartment buildings in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
No affordable apartments were launched in HCMC in October, while the high-end segment dominates new supply, showing an imbalance in the market.

Of the 371 new apartments launched across five projects, Grade A (high-end) accounted for 79 percent, while the rest are luxury apartments, according to a report by real estate developer DKRA Vietnam.

Thu Duc City accounted for 95 percent of new supply.

Seventy five percent of the apartments have been sold.

DKRA further warned the shortage of Grade C (affordable) apartments are continuing and would likely persist as most projects planned for year-end launch are mid-price and high-end.

Ho Chi Minh City Real Estate Association (HoREA) Chairman Le Hoang Chau recently said the imbalance between high-end and affordable segments is alarming even though there is high demand for cheap apartments.

The government needs to issue policies to encourage developers to focus on affordable segments instead of more profitable high-end apartments.

HoREA defines the affordable segment as units priced under VND35 million ($1,539) per square meter.

Some other market research companies put the threshold for this segment at VND25 million.

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