Southern land, house prices up by 20 pct

By Vu Le   June 22, 2022 | 04:00 am PT
Southern land, house prices up by 20 pct
Houses in eastern Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Land and house prices in southern localities in May rose 10-20 percent year-on-year as new projects establish a surging price tag that raises the market average.

Land prices in the provinces of Binh Duong and Long An increased by 11 percent, with the latter accounting for 70 percent of new supply, according to a recent report by real estate developer DKRA.

In Ho Chi Minh City, house and villa prices went up 15-20 percent from the beginning of the year, with new supply and consumption concentrating in the southern and western part of the city.

In the provinces of Dong Nai and Ba Ria Vung Tau, house and villa prices rose by 10-20 percent from three to five months ago.

Data of real estate developer Ngoc Chau A confirmed the same trend.

Prices of land and houses in HCMC and neighboring provinces rose by 10-15 percent year-on-year in May, it said.

Some areas saw prices surging by 20 percent from December last year, it added.

Nguyen Loc Hanh, CEO of Ngoc Chau A, said part of the reason why land and house prices rise is the surge in apartment prices.

HCMC is seeing more and more apartments priced at VND60-80 million per square meter, while Binh Duong Province is recording those priced at VND50-55 million.

"When new projects are released with a price exceeding average, new prices will be established right after."

But this also leads to slower sales, he added.

An example of the trend is the VND40 billion per villa price tag of the residential project Global City in HCMC's District 2, double that of a project nearby, Lakeview, with a price tag of VND15-20 billion.

This surging figure has pushed up house and land prices in the neighboring provinces of Binh Duong, Dong Nai and Long An.

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