What Keeps the HCMC Property Price on an Uptrend, Still?

Property Market Updates

While Vietnam’s GDP maintains a stable growth of average 7% in the last 8 years and the HCMC property market’s price increases 5-10% Y-O-Y averagely, the question wandering in the mind of every property investor is: “Is the HCMC Property still on an uptrend?”

Yes, they have the same reason to be concerned as the thought: “everything goes up must come down”. Also, still obsessed by the loop of the deadly 10 years on property doom can happen anytime from the latest occurrence in 2008.

Numbers don’t lie, together with Realtique, let’s clarify this question with the below 02 sections:

• 01-Property Market Updates
• 02-Property Market Potentials 

In the first 6 months of the year 2019, the supply of new launch project dropped 42% comparing to the last year. This drags the sold units in the same direction with 38% decrease Y-O-Y. Plus, the delayed projects add more weights on slowing down the supply.

When the demand is still high and the supply is limited, the price easily increases up to 20% Y-O-Y.

Lowest New Launch and Sold Units Comparing to Previous Year till Q2

List of New Launch Projects till Q2/2019

Only 1 New Launch Project in District 1 with 150 units

With 10,000 units from Vinhomes Grand Park, the supply increases highest, but these 10,000 units were quickly consumed in 2 weeks.

New questions:

• Why the supply is limited?
• Why the demand is high?

The demand for residential projects is always high since HCMC is the country’s largest economy hub. With the population of 14 Million (almost half coming from other provinces for jobs), the need of the people who seek for affordable and mid-end segments to settle down is always high. With the suitable mortgage, these segments suite their budget and explains why the sold rate of such segments are always high.Staying away from the price increase of the CBD, these people accept the decentralization waves toward the South and East of the city where the price treats them easier.The East, with the most up-to-date planning and infrastructure development, will lead the decentralization with projects like Vinhomes Grand Park, Aio City, Akari City and D-Homme

Whereas the investors are keen on high-end and luxury ones, because of good capital gain and rental yield. Also, Location, Developer and Quality of these projects are very satisfying for stable increase in long term when the supply of project sites in CBD is scared. Moreover, the developers who own the CBD sites are not rushed to launch the projects when delaying actually brings more value to the site in the end.

Local investors not only compete with themselves on limited supply of high-end and luxury segment, but also with the foreigners when the 30% quota in any of these projects are the first to go.

Factors make the high-end and luxury projects in CBD hot

Price Now and Then of High-end and luxury projects in CBD

Due to the limited project sites, the price of the projects in CBD is forecast to have stable increase:

Forecast of project price in CBD

Property price in the CBD comparing to Bangkok or Kuala Lumpur still has room for increase:

To sum up:

• More projects are expected to be launched in the end of the year. Most will be in the decentralized areas, further away from the center like the East;
• More stable primary price increase;
• Strong demand (oversea and local).

What are the projects to expect for good capital gain?

Project Name: Narra Residences, Empire City

Location: Thu Thiem Area, District 2, Vietnam

Developer: Keppel Land, Tran Thai, Tien Phuoc, Gaw Capital

Expected Launch: Soon

Project Name: The Marq

Location: District 1, Vietnam

Developer: Hongkong Land, Hoa Lam

Expected Launch: Available Now!

Project Name: The Opera Residences, Metropole Thu Thiem

Location: Thu Thiem Area, District 2, Vietnam

Developer: Sonkim Land

Expected Launch: Dec 2019

Project Name: Masteri Parkland

Location: District 2, Vietnam

Developer: Thao Dien Joint Stock Investment Co.

Expected Launch: Dec 2019

Project Name: Vinhomes Grand Park

Location: District 9, Vietnam

Developer: Vingroup

Expected Launch: Oct 2019

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Realtique Co., LTD

+84903186378 (Whatsapp/Viber/Zalo/Wechat)

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94 Xuan Thuy St., Thao Dien Ward, District 2, HCMC