The Ho Chi Minh City Real Estate Association (HoREA) said that land price surge in suburban districts in late 2017 to May, 2018 has cooled down.

Cheap apartment will be in high demand (Photo: SGGP)

Also according to HoREA’s report, in the first five months of the year, the “land fever” had seen in residential land lot segment while apartment price maintained the same.

Statistically, HoREA said compared to same period last year, total projects were 29, a decrease of 9.4 percent. The number of houses in the projects was 9,174 including 8,690 condo flats and 484 low-rise buildings.

Some 3,828 deluxe apartments accounted for 41.8 percent in the market higher than same period last year with 31.3 percent while 3,465 apartments at average cost accounted for 37.7 percent in the market showing a reduction of 32.6 percent whereas 1,881 cheap apartments plummeted 69.7 percent compared to same period last year.

HoREA’s report showed not only a reduction in supply but also in new projects. For instance, in the first five months of the year, the Department of Construction approved 146 investment documents and 376 construction registration. Generally, the city granted 19,712 construction permits, a dip of 31 percent compared to same period last year.

JLL Vietnam, a professional services firm that specializes in real estate and investment management, said the market will welcome waves of finished projects and the supply is still abundant. It is positive in sold projects because developers have good strategies. Most people buy houses to live in not for investment purpose.

JLL Vietnam representative said that demand for cheap apartment will rise in the next time. Thanks to improved income and community facilities, more young buyers will prefer living in a condominium.

HoREA also forecast that realty estate market in late 2018 will continue to grow but bubble is unlikely to form in HCMC. An apartment at the cost of VND1 billion with one or two bedrooms will be in high demand, said HoREA Chairman Le Hoang Chau.

SGGP