Home Business The asking price of condominiums increased by 9%

The asking price of condominiums increased by 9%

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Ho Chi Minh CityIn August, the peak of the fourth epidemic, the selling price of apartments on online markets across the city increased by 9% over the same period last year.

According to a report from Batdongsan website, in August, although the supply and demand of online real estate markets are going down, house prices in Ho Chi Minh City continued to escalate. The apartment price index in Ho Chi Minh City increased by 9% over the same period in 2020, this rate of price increase was higher than many other provinces in the midst of the fourth epidemic and slightly higher than Hanoi by 1%.

Although apartment prices on Ho Chi Minh City’s online floors continued to increase, the number of listings for sale of apartments decreased by 54%. In the rental property segment, the number of listings for rental apartments and townhouses also adjusted by 57-66%, respectively. Interest in rental properties was at a low level, down 42-52% for single-family houses and townhouses, respectively. Weak supply and demand is said to be the market that is negatively affected by the fourth outbreak.

The data of this unit also shows that the supply and demand in the online market is at a record low in the provinces and cities with high infections such as Ho Chi Minh City, Binh Duong, Dong Nai, Da Nang, Khanh Hoa, and Hanoi. . Overview of the online real estate market in August recorded a decrease of 78% compared to the same period last year and a decrease of 58% compared to July. Online users’ interest in online real estate markets Online sales also dropped by nearly 40% over the same period, in which the views of land and apartment sales decreased by 29-32% respectively.

Housing market in Thu Duc City. Photo: Quynh Tran

Previously, Ms. Giang Huynh, Senior Manager of Savills Research in Ho Chi Minh City, said that about 40% of the number of apartment projects offered for sale on the primary market (the investor offered for the first time) had climbing prices. ladder between the fourth epidemic.

According to Ms. Giang Huynh, there are 3 main reasons why apartment prices have escalated during the epidemic season. One is that project development costs tend to increase over time. Secondly, the land fund for housing development is limited, land costs are high, loan interest, and project licensing time is prolonged, leading to an increase in input and project development costs of enterprises.

The third reason is that the lack of new housing supply makes the projects being offered for sale have a competitive advantage, which also promotes local price increases. This is the impact of the shrinking supply factor due to the prolonged epidemic, but it has not properly reflected the supply and demand movements in the housing market.

However, this expert also confirmed that despite the increase in the asking price of apartments, the housing absorption rate in the Ho Chi Minh City market recorded in the period was very low, reaching only 35% due to the impact of the epidemic.

Not only the price of apartments escalated during the epidemic season, the price of townhouses even increased higher than apartments. According to a report by Propzy, in the past 18 months (during the period of 4 outbreaks of the disease), retail townhouse prices have increased by an average of 12-17% over the same period. Despite the increase in prices, market liquidity was at a record low.

During the fourth outbreak, which took place from the beginning of May until now, the transaction of individual townhouses in existing residential areas in Ho Chi Minh City recorded an average decrease of 44% compared to before the outbreak of the pandemic. This is the period when townhouse liquidity plunged the most in the last 18-month cycle since Covid-19 appeared in Vietnam.

Trung Tin

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