At an investor meeting hosted by property developer Nam Long Group, Duong Thuy Dung, senior director at CBRE Vietnam, said private homes in HCMC cost an average of VND300 million (US$11,400) per square meter in the primary market and 160 million VND ($6,000) in the secondary market in the first half of this year.
At these prices, a 100-square-meter private house costs VND30 billion ($1.1 million), and a 50-square-meter unit starts at VND15 billion ($570,000).
On the secondary market, the prices are VND8-16 billion ($300,000-$600,000).
The average income in HCMC, and the southeastern region of the country generally, is VND170 million ($6,400) a year.
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Private homes in eastern HCMC. Photo by Quynh Tran |
A report by real estate and investment management company JLL Vietnam said primary market prices of private houses rose to VND430 million ($16,300) per square meter in the second quarter, while secondary market prices stayed at around 165 million VND ($6,200).
This increased prices to 15-40 billion VND ($570,000-1,500,000).
JLL Vietnam reported that the absorption rate in the second quarter of this year was just 27% of new listings.
Real estate services provider DKRA Group found that in July only 8% of primary supply was sold.
Analysts said most people could only buy in satellite urban areas like Tay Ninh, Dong Nai and Binh Duong, where housing is much cheaper and transport infrastructure is improving.
Dung said private houses within 10 kilometers of central HCMC cost 200 million-1 billion per square meter, and fall to 40-50 million VND ($1,500-1,900) 20-30 km out.
HCMC’s expressways, metro services and ring roads are set to cut travel times to the city center.
