Illustrative image. (Photo: VNA)

HCM City (VNA) – The high-end property segment in Ho Chi Minh City is experiencing a lull, with supply exceeding demand whilst cheap apartments and land lots priced around 1 billion VND (44,000 USD) are in high demand, mostly from graduates and newlyweds.

About 95 percent of real estate put up for sale in recent months were sold. Heaven Cityview project in District 8, offering apartments from 900 million VND (39,600 USD), nearly sold out its products. Meanwhile, thousands of customers intend to purchase homes valued below 1 billion VND at Tecco Town Complex in Binh Tan district. Citi Esto project in District 2 providing apartments from 1.2 billion VND (52,800 USD) has also received a positive response from customers.

Regarding the land lot segment, Kim Oanh Group has sold 90 percent of lots in its SingaCity urban area project in District 9. The group plans to offer some 2,000 land lots and houses to meet demand.

According to Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, the city’s property market will undergo a drastic shake-up to handle disparity between demand and supply in the next few years. The market has seen major changes with a switch from high-end projects to mid and low-end segments.

A survey from the CB Richard Ellis Vietnam Co., Ltd (CBRE) showed that 7,600 real estate units were put up for sale in the third quarter, 60 percent in the mid-end segment.

DKRA company, a property service supplier, reported that more than 4,800 mid-and low-end apartments were purchased in the third quarter. Meanwhile, 80 percent of the 1,500 land lots for sale were snapped up by customers in the period.-VNA