According to a recent market report released by property firm CBRE Vietnam, the condo market in HCMC continued an upward trend at the end of Q4- 2018. Specifically, in the last months of the year, condo projects launched for sale in the city market saw an average price of $1,709 per sqm, rising 6 percent quarter-on-quarter and 10 percent year-on-year.
However, this is just the average price on the primary market. In fact, many projects have set new price levels which are higher than the average price range. CBRE noted that this average price increase is very high for the new supply of condo which have just entered the market.
The strong growth of average condo price results from the very high asking prices of projects in the luxury segment. Prices of some projects have been 2-2.5 times higher than the average price, or $7,000-8,000 per sqm, even exceeding this range.
CBRE’s statistics also showed that condo classification in HCMC according to unit price fluctuated strongly last year. Some segments are no longer suitable to their actual price ranges.
Specifically, over the past years, luxury condos with primary prices averaged over $3,500 per sqm or more. But now, the market sees new prices twice as high as the old ones. High-end condos have initial offering price of $1,500-3,500 per sqm, but products priced at $1,500 per sqm are becoming increasingly rare. Also, mid-end condos are priced at $800-1,500 per sqm, however, the current popular prices are gradually moving towards the peak of $1,500 per sqm.
In 2018, many developers continuously adjusted their schedules of implementing housing project and delayed the launch of new products, so the condo market experienced a significant decrease in supply. The total supply of condos in HCMC last year reached 30,792 units.
CBRE forecasts in 2019, mid-end products will account for a high proportion because of the appearance of many large-scale projects in the East Saigon, this area will be the "hot spot" of the HCMC condo market, especially in District 9. This year, the selling price will continue to go up since the input costs to developing condo projects are increasingly high.