Ho Chi Minh City property buyers and investors will continue to drive real demand for condominiums in the city.
According to Colliers International latest research report, the second quarter of 2016 saw 5,785 successful transactions across all segments,
This was down 35 percent compared with the previous quarter.
Thanks to real demand from end-users, Colliers said that apartments in Ho Chi Minh City valued between US$ 40,000 and US$ 90,000 had stronger net absorption than those with higher values.
The primary asking price declined 0.3 percent quarter-on-quarter as a result of increasing supply and moderate demand.
Property developers have been monitoring the market movement to adjust their price appropriately, the report noted.
SUPPLY
There were 8,861 new units launched from 17 projects which was 30.5 percent lower than the previous quarter in terms of total new supply.
The mid-end segment took the highest market share at 51 percent, providing 4,519 units.
By location the most of new supply was located in District 2, District 7, District 9 and Binh Thanh District.
DEMAND
Colliers’ International observed the mortgage market had gradually become more common in Vietnam, and for Ho Chi Minh City property buyers.
The change is being driven by the fact that 60 percent of Vietnamese citizens are under the age of 35 and migration into cities is rising.
As the younger generation have better jobs with stable income, their ability to own properties through home loans has increased, Colliers said.
Real estate loans, which account for 13 percent of total bank lending in Ho Chi City during 1H 2016, are contributing to a property rebound that has seen a surge in condominium sales since last year.
OUTLOOK
Colliers said demand for owner occupation and for investment from Ho Chi Minh City property buyers will continue to lead the market.
With more joint ventures set up between local and foreign developers, such as Nam Long, Hankyu
Realty, Nishi Nippon Railroad, An Gia-Creed Group-Phat Dat, Tien Phuoc-Keppel Land, Gaw Capital and Tran Thai, the real estate industry will see a growing number of high quality residential products, the real estate firm concluded.
