CBRE: 2015 apartment sales grow 98% in city

HCMC - Property service provider CB Richard Ellis (CBRE) has estimated that more than 36,000 apartments were sold in HCMC last year, up 98% compared to 2014.

Duong Thuy Dung, director of research and consulting at CBRE Vietnam, said buyers of the apartments were individuals, corporate investors and real estate sales agents.

Dung said mid- and high-end apartments with prices from VND1.3 billion (less than US$57,800) to VND5 billion a unit accounted for more than 75% of the total. This was in stark contrast to the 2009-2014 period when condos with prices of less than VND1 billion made up a majority of total sales.

With a firm recovery seen in the local property market last year, investors of real estate projects, particularly those with good planning, amenities, greenery and location, have adjusted up selling prices.

Dung said apartment prices on the primary market went up by 4.4% in 2015 compared to 2014 while housing projects at prime locations had revised prices up 10-15%.

“Despite higher prices, projects were still quickly absorbed,” Dung said.

Regarding the prospect for the property market, Dung said developers of real estate projects are anticipating more buyers in the coming years.

Last year, 78 new projects with a total of 41,787 apartments in HCMC were introduced and sold to customers. They included Vinhomes Central Park with 7,500 units in Binh Thanh District and Masteri Thao Dien with 3,700 units in District 2.

The apartment supply in the city will have more than 45,000 apartments from 90 new projects in different segments this year. Among that, the top-tier products will grow by 20% over last year.

Marc Townsend, managing director of CBRE Vietnam, said ample housing supply would result in fiercer competition on the property market and piled pressure on investors of property projects, especially those not competitive in terms of location and product.

If the market grows too fast, risk should be taken into account, Townsend warned.

Earlier, the HCMC Real Estate Association (HoREA) said there were 26,000 successful housing transactions in HCMC last year and apartments made up a bigger part of the total sales volume.

Source: The Saigon Times.