HCMC apartment prices climb on secondary market

HCMC resident Tuan in April considered buying a two-bedroom in Binh Thanh District for VND6.2 billion ($251,600), but hesitated to make a deposit. The unit is now 15% more expensive at VND7.1 billion.

"The hike was too much. I will have to find another option."

Another buyer, Ngoc Anh, bought a 71-square-meter unit for VND6.6 billion in Thu Duc City earlier this year. A similar apartment on the same floor was just sold at VND7.3 billion this month, or 11% higher.

Xuan sold a 76-square-meter apartment in District 7 for VND4.3 billion, 12% higher than the price she paid for it in the end of last year.

VnExpress data shows that apartment prices on the secondary market – where buyers sell to other buyers – have jumped between 10% and more than 20% since the beginning of the year.

Prices at Masteri Thao Dien in Thu Duc City have risen 23% since February to VND86 million per square meter.

Opera Metropole in Thu Thiem has jumped 20% to VND240 million per square meter.

Data from property listing platform Batdongsan shows that in the first eight months apartment prices have jumped 56% in District 7 and 12% in Phu Nhuan District.

The Ministry of Construction attributes the price increases to the limited supply of new apartments, especially in the mid-range and affordable segments.

It forecasts that prices will continue to rise by 15-20%, exacerbated by higher land fees imposed since August.

Phan Cong Chinh, CEO of property developer Phu Vinh, said that rising land fees and delays in permit approvals for residential property projects have pushed up prices.

Developers cannot lower prices due to high costs, he added.

Dinh Minh Tuan, CEO of Batdongsan, said that demand for housing continues to be high in HCMC, pushing people to look for options on the secondary market, which are more affordable than the primary market – where developers sell to buyers.