Supply of apartments in HCM City’s primary market in Q1 dropped by 18 percent year-on-year. (Photo: nld.com.vn) Ho Chi Minh City (VNS/VNA) — Ho Chi Minh City’s apartment market sawsupply decline in the first quarter.
According to a report by Savills Vietnam, the primary market supply was4,050 units, a drop of 48 percent quarter-on-quarter and 18 percentyear-on-year.
There were no new projects.
Twenty apartment projects in the city temporarily stopped salesmostly to make price adjustments for the second quarter.
The number of transactions was 3,020, representing a 46 percentdrop quarter-on-quarter, but a 45 percent rise year-on-year.
Apartments in suburban areas accounted for almost all of thetransactions, a vast majority of them in Districts 9 and 12.
Grade C apartments accounted for 80 percent of transactions andled primary market supply with a 74 percent share. It was followed by grade Bat 23 percent.
Grades A and B are seeing limited supply and high prices, andare having to compete with grade C apartments, whose quality standards areimproving, according to the report.
Prices in the primary market moved up by 6 percent, with someprojects beginning new phases increasing their prices by 10 percent.
Prices across all grades would continue to rise, the reportsaid.
Those that halted sales to make price adjustments are expectedto hike them by up to 15 percent due to past success.
Troy Griffiths, deputy general director of Savills Vietnam, said there is a supplyshortage and new stock in Q1 was snapped up quickly with the absorption ratebeing 83 per cent.
While developers are having difficultyraising funds through issuance of bonds and bank loans, foreign investment inQ1 was worth nearly 2.7 billion USD, he said./.
