Real estate agency Savills has reported strong second quarter sales in both the apartment and villa/town house sectors in Ho Chi Minh City in its latest research report, released this week.
During Q2 a total of 19 new projects and fresh supply from an existing project were launched, supplying more than 8,700 units and amounting to an increase of 15 percent quarter-on-quarter (QoQ).
Savills said there were more than 40,100 primary apartments available across all grades.
There was strong absorption in all grades with more than 6,900 sales, up 10 percent QoQ and 34 percent year-on-year (YoY). Grade ‘B’ properties led the way with 49 percent, while Grade ‘A’ also saw considerable activity with 330 transactions, yet absorption decreased -5 percentage points due to a large amount of new supply.
From Q3/2016 until 2018 more than 35,000 units are expected to enter the market, according to the real estate firm.
In the same period, 11 new villa/townhouse projects, and the next phases of three existing projects, provided approximately 1,600 dwellings, pushing primary stock to approximately 3,200 dwellings, up 55 percent QoQ and 180 percent YoY.
Sales increased by 78 percent QoQ and 106 percent YoY, with townhouses dominating and accounting for 68 percent of total sales. Absorption was 25 percent, up 3 percentage points QoQ but down -10 percentage points YoY.
District 2 was the best performer this quarter, Savills reported.
Medium- to large-sized townhouses of between 90 sqm and 120 sqm were absorbed well in the midst of strong developer rollout of smaller villa and townhouse products.