Commercial property supply likely to shrink in HCMC

According to the Ho Chi Minh City Real Estate Association (HoREA), the city is unlikely to see any major increase in supply of commercial real estate in ten first months of the year compared to the same period last year.

Commercial property supply likely to shrink in HCMC

For instance, the number of housing project decreased by 11.1 percent and the number of houses sold in market dropped by 39.2 percent. High-end, mid-range and cheap apartments have seen a decline of 9.6 percent, 37.5 percent and 68 percent respectively.
Specifically, just 23,759 houses of 65 projects were built in ten months with 7,444 high-end houses; 11,731 mid-range houses and 4,584 cheap houses
From the figure, HoREA said the supply of high-end houses is abundant in the next time. Imbalanced supply doesn’t guarantee the sustainable development for the market with low proportion of cheap houses.
Investors should re-consider their products and there will be fierce competition in the high-end house.
HoREA added that deluxe apartment projects in downtown enjoy exclusive right because city authorities decided not to approve high-rising building projects from now to 2020.

By NHUNG NGUYEN – Translated by UYEN PHUONG

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