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The price of real estate in Ho Chi Minh City soars ever higher

July 14, 2020 | 08:15

In early 2020, Ho Chi Minh City real estate price set a new price level, the center apartment price of District 1 is up to VND 500 million/m2, the central area of ​​District 2 up to VND 200 million/m2, neighboring districts also increased the record.

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Ho Chi Minh City market set a new price level

The latest report of HoREA (Ho Chi Minh City Real Estate Association) said that real estate prices in Ho Chi Minh City are currently rising ever higher. In the first 6 months of 2020, Ho Chi Minh City apartment market has set a new price level, an average increase of 10-15%, some places increase 40-60% compared to the end of 2019.

In 2019, Ho Chi Minh City real estate market is stirring when an apartment project on Ton Duc Thang street is offered for sale at VND 300 million/m2. However, in the second quarter of 2020, the price of VND 300 million/m2 was broken by a project located at the intersection of Le Thi Hong Gam - Nguyen Thai Binh - Pham Ngu Lao - Pho Duc Chinh, District 1. The price of this project was rumor up to USD 23,000/m2 (equivalent to VND 500 million/m2).

In the first quarter of 2020, in District 2, a tower was also offered for sale at USD 8,000/m2, equivalent to VND 200 million/m2.

In District 7, at the end of 2019, the price of projects is only about VND 40-50 million/m2. However, currently some projects in Phu My Hung area have reached the milestone of VND 70 million/m2.

Even the coastal districts such as Binh Chanh, Binh Tan, District 12, the price also increased from VND 35 to 45 million/m2. District 9, Thu Duc, which is famous as the "mecca" of cheap apartments, now has jumped to VND 38-40 million/m2.

Share on this issue, PhD. Tran Nguyen Minh Hai - real estate expert in Ho Chi Minh City, said the price of apartments in Ho Chi Minh City City increased sharply in 2020 due to the following reasons: The city's land fund is increasingly scarce, resonating with it is the problem of legal congestion, credit on real estate continues to tighten, leading to a decline in apartment supply.

The purchasing power of the market has been strongly shifted to high-end projects which are about to be handed over at reasonable prices

According to the actual survey, the projects that set new price levels belong to the group of newly launched projects for the first time in 2020. However, the projects deployed in the period 2018-2020 remain the same. The price is quite stable and evaluated as suitable with real demand of real estate market. Therefore, the heat of the market is mainly concentrated in these projects due to the convergence of conditions such as upcoming handover, reasonable prices and standard legality.

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Perspective image of Sunshine City Saigon project

For example, the Sunshine City Saigon project of the Sunshine Group investor in the heart of District 7. This is one of the most attractive projects of the Southern market, currently focusing on the hot spot in the upcoming S1 building, the remaining fund is just over 30 units, of which the fund for outsiders is no longer available.

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Actual picture of a 3-bedroom apartment in the model apartment of Sunshine City Saigon

Mr. Ngo Ngoc Dien - Director of a distribution floor of the project said that the project is currently receiving much attention from investors, many investors come down to the money at the same time many apartments to exploit for leasing. According to him, the attraction of this project comes from the following reasons:

- Firstly, this project is expected to be handed over in the fourth quarter. Currently, the project has completed the stone tiles, Low - E glass tiles on the entire exterior, and is conducting the interior construction. Currently, customers who are interested in the project can come to the site to evaluate the quality of the works as well as utility infrastructure, the design of the apartment is suitable for the purpose of use or not. This is the point that investors like most because of the "Comfort is better than pride" mentality.

- Secondly, the investor is launching a very attractive financial policy. Specifically, for the S1 building is about to hand over, customers only need to pay 25%, the rest banks support interest-free loan and principal repayment within 12 months. The current selling price for a 2-bedroom apartment in the project is about VND 4 billion, so, just pay close to VND 1 billion, customers can receive houses immediately. Then, within 12 months after receiving the home, customers do not have to pay more. Many customers complete the house in this period, can put the apartment for rent to finance the interest payment of the bank. The current price for renting a 2-bedroom apartment in this area is about USD 1,000 / month.

Finally, Sunshine City Saigon owns a beautiful location when it is located in the heart of District 7, close to Phu My Hung urban area, home to the Japanese and Korean expert community. In addition, the whole project is designed with Low - E glass from ceiling to floor like a 5 star hotel. All apartments have large area of 3-4 bedrooms, owning high-class furniture, imported from famous brands in the world. In particular, IoT technology is put into operation throughout the project from the inside to the outside with the system: smart parking, smart lobby, smart elevators and smart apartments ... to meet the high-end living needs of the rich and the discerning experts working in Ho Chi Minh City.

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