HCMC townhouse prices hit record high of $14,500 per sq.m

By Nguyen Tieu   January 18, 2024 | 03:02 pm PT
HCMC townhouse prices hit record high of $14,500 per sq.m
Properties in HCMC's Thu Thiem area in July 2023. Photo by VnExpress/ Quynh Tran
Townhouse primary market prices in Ho Chi Minh City reached a new high of VND350 million (US$14,500) per square meter last quarter, according to property consultancy Cushman & Wakefield (C&W).

Real estate agency CBRE Vietnam noted that in the third quarter of 2023, the average primary market price for townhouses in Ho Chi Minh was around VND255 million per square meter.

However, there were fewer transactions and less demand on both the primary and secondary markets, with the average secondary market price remaining relatively stable over the past nine months as buyers waited for market recovery.

There were only 338 townhouse units listed for sale on the primary market in all of 2023. Most of them were in the luxury segment in Thu Duc City, explained Trang Bui, CEO of C&W Vietnam.

The high luxury-market selling prices of these projects significantly increased the average primary price for townhouses across the market.

"This is what drove the average primary market price of townhouses in HCMC to rise continuously, and then peak at over VND350 million per square meter," she said.

The prices of townhouses have also been impacted by increased construction, materials, and labor costs, and escalating land prices in HCMC, according to a representative from real estate consultant SolReal.

He stressed that land prices keep rising every year, never reducing, so the prices of townhouses have gone along the same path.

Furthermore, townhouse is one of the best assets for both investment and housing needs, meaning this type of property usually garners a lot of interest from buyers, especially in HCMC, where there is not much land available for low-rise buildings, the representative said.

"The supply has been gradually decreasing over the years, so it is unlikely for townhouse prices to decrease, especially for projects that have passed all legal procedures," he said, adding that even though supply was low – pushing prices up – demand was also low as "the segment was inactive mainly due to the overall market sentiment and the limited expensive supply."

Trang agreed, stating that people were more cautious about the HCMC townhouse segment in 2023 than in previous years, with most buyers postponing their purchases to further observe the market.

Given the inactive real estate market and the global economy recession, this segment is not currently a top priority for buyers, she said

C&W speculated that around 4,200 new townhouses would be developed between 2024 and 2026, primarily in the eastern and southern districts of HCMC.

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