Properties in Thu Duc City in the eastern part of HCMC, October 2024. Photo by VnExpress/Quynh Tran
The average price of houses in the primary market, including townhouses, shophouses and villas, in HCMC fell in the third quarter of 2024 after six quarters of gain.
It was at VND275 million (US$11,070) per square meter, a 14% decrease from the second quarter and 28% year-on-year, according to a report by property consultancy Savills Vietnam.
The company said this was due to the launch of several new projects at prices below VND10 billion per unit in the quarter, much lower than the VND30 billion commonly seen in the city.
Dr. Su Ngoc Khuong, senior director of investment at Savills Vietnam, said 766 new houses entered the market, up 15% from the previous quarter.
Though houses costing VND30 billion or more accounted for 63% of them, the share of units priced below VND10 billion also grew to nearly 29% of the new supply in the third quarter.
Concurring, JLL Vietnam, another property consultancy, pointed out that prices of VND7-10 billion per unit are found at a project in Binh Chanh District.
Savills noted that the number of houses sold surged by 140% from the second quarter and 170% year-on-year to 173 units in the third quarter, 73% of them priced at under VND10 billion.
Khuong said: “This indicates that the demand for houses in HCMC is focused on lower-priced products, even if they are located in suburban areas far from the city center.”
Savills forecast around 140 new townhouses and villas to enter the market in the last quarter as some developers have postponed product launches to 2025 to wait for more favorable market conditions.
From now until 2027 units priced at under VND10 billion are expected to sell well but only account for around 10% of new supply.
