Containing a new supply with high absorption, North Saigon area occupies a proportion of over 50% of HCMC real estate market.
According to the recent report of DKRA Vietnam, the North HCMC charge area is leading the supply and consumption of land in HCM City, accounting for 52% of the supply and 51% of the land sold in the past year. In the context of the whole HCMC market, there are about 12 new land plot projects, with about 3,736 backgrounds only in 2018. Absorption rate is about 86%, equivalent to 3,272 bases. Compared to 2017, the market price increases on average by 12-15%.
Not only leading the supply and absorption, but a survey on website Cho Tot Nha on more than 200,000 housing and sale listings also shows that the North of Ho Chi Minh City has a high growth rate of housing prices as of the third quarter. 2018. In particular, district 12 took the lead in price increase. The price increased from VND 27.3 million per square meter to VND 38.6 million per square meter, ie an increase of over 41% in just one year. If compared to the previous quarter, District 12 also had the highest growth rate (12.5%) and became the leading district in terms of the number of interested buyers.
In particular, the area with the highest increase in land price is Tan Hung Thuan ward with an increase of nearly 82%. The second place is Hiep Thanh Ward, nearly 44% higher after a year. Thoi An, Tan Chanh Hiep, Thanh Loc and Thanh Xuan wards also have high rates of real estate prices.
According to experts, the cause of this growth, first of all, comes from the psychology of most home buyers still prefer to own the ground house, because this is the type of property with long-term value, there is Potential increase in prices. Next is the continued increase in demand due to strong continued population growth. According to the HCMC People’s Committee, immigrants to Ho Chi Minh City increased by an average of 8% per year, continuously for the past 20 years. The population density reaches 4,000 people per km2, in which the population density in the districts is 13,600 people, nearly 13 times higher than the districts. Meanwhile, the central area’s land fund is becoming increasingly scarce. The situation of land price teams in central areas has pushed a wave of housing investment away from suburban areas such as Binh Chanh, Nha Be, District 12.
Along with District 1, District 12 is one of the two districts selected by the city to pilot the “Construction of Ho Chi Minh City to become a smart urban area in the period of 2017-2020, vision to 2025”. This is one of the factors that make the attraction of regional real estate in the eyes of home buyers, especially investors. Located in the North West gateway area, District 12 is adjacent to Thu Duc districts. , Binh Thanh and Go Vap are conveniently accessible to the central districts. This is one of the factors that make the attraction of regional real estate in the eyes of home buyers, especially investors. Located in the North West gateway area, District 12 is adjacent to Thu Duc districts. , Binh Thanh and Go Vap are conveniently accessible to the central districts.
Traffic infrastructure in this area in recent years has been improved, increasing inter-regional connectivity. Typically the river bus route and metro line 2 (Ben Thanh – Tham Luong), help to connect smoothly from the East to the West as well as from the West to the inner city. These 2 projects are expected to create resilience for the development of District 12 in the future.
The majority of new supply comes from the next open-sale phase of the projects that have been introduced to the previous market such as Simcity phase 2 (Q4 / 2018), Lovera Park phase 3 (first quarter of 2018), Dragon Village stage 1 and 2 (first and second quarters of 2018). The big shortage of new supply has brought the market’s consumption rate to a high level, creating an opportunity to increase prices for the housing market in the suburbs of HCMC in general and District 12 in particular in 2019. Currently, many big investors have implemented long-term campaigns to catch the market of District 12. In particular, there is a high-class apartment project of Ha Do, Senturia Vuon Lai project of Tien Phuoc or Saigon Company. 9 with Saigon Thoi An villas project providing 155 quality and fully serviced city villas for customers.
Based on CBRE’s survey, at the end of 2018, the whole market of built apartments, townhouses and villas in HCMC welcomed an additional 1,251 units from 12 projects, a decrease of 62% compared to 2017. Most products offer sold in 2018 is a townhouse with 722 units, accounting for 57.7% of new supply.