HCMC new apartment sales plunge 16% in Q3

By Phuong Uyen October 6, 2024 | 03:17 pm PT

Properties in Thu Duc City, located in the eastern part of HCMC, in August 2024. Photo by VnExpress/Quynh Tran

In HCMC, 1,915 apartments were sold in the primary market in the third quarter, down 16% from the second, according to a report by property consultancy Savills Vietnam.

The absorption rate was 39% in the third quarter, a two-percentage-point decrease from the second, it said in its market report for the quarter.

Mid-priced apartments costing VND3-5 billion (US$121,000-202,000) accounted for 66% of the transactions.

The low demand has caused many property developers to offer promotions or favorable payment policies to attract buyers.

At two projects in Tan Phu District, buyers only need to make a down payment of 15% to move into their apartment.

Savills said the supply and average price also decreased from the previous quarter.

Supply amounted to 4,871 units, down 13% while the average price was down 12% to VND68 million per square meter.

Giang Huynh, head of research at Savills, said the average price fell due to a massive drop in high-end supply priced at above VND5 billion to just 2% of the primary market.

Low-priced units under VND3 billion accounted for 38% of the supply, and mid-priced ones made up 60%.

Savills forecast 6,700 new apartments would be added in the remaining months of the year, mostly in the high-end and mid-priced segments.