House sales in HCMC drop to record low

According to the Jones Lang LaSalle Vietnam (JLL)’s report, house sales in Ho Chi Minh City drop to the record low within five recent years.

House sales in HCMC drop to record low

For instance, in the fourth quarter of the year, 118 villas and houses of small projects in HCMC were sold as per JLL, because large-scale projects were facing land reclamation.
Also in the fourth quarter, just 340 houses mostly of the available projects were sold while demand was still high with the rate of house sale at 92 percent in 2018. Because of limited supply, prices of houses in this segment are escalating with an increase of 14 percent yearly in the primary market.
JLL said in its report that house and villa project developers enjoyed a bumper year as prices of houses went up in 2018 with an average increase of 3.2 percent in the secondary market. Selling price in the primary market averaged $2,700 per s.q meter
Additionally, JLL forecast around 4,500 detached villas and houses will offer to sell in 2019 and sales will be high with the rate of 90 percent. Prices will be high but not as same as before.
When it comes to dominium projects, nearly 8,300 flats belonging to most housing projects, which were offered for sale in previous quarters, were sold except 70 flats of Goldora Plaza project which was open for sale  in the fourth quarter of 2018.
More than 8,800 flats were sold in 2018 bringing the total to 40,032. Though sale rate declined by 13.8 percent, sold houses and inventory are still high against the year before.
The primary market has seen stability in apartment price in quarters especially luxury and common segment whereas medium priced segment has escalated from 3 percent to 6 percent differently in each quarter.
Prices went down in high-end apartments in the secondary while it skyrocketed in the lower priced segment.
A secondary investor enjoyed profit fluctuation from 9 percent to 12 percent differently each year.

By BINH KHOI - Translated by ANH QUAN

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