The Ho Chi Minh suburbs will play a key role in the city’s residential market, according to Savills Vietnam. In particular, the eastern suburb of Thu Duc City will be home to the largest amount of future condominium and house and villa supply by 2024.
In the Vietnam Market Report Q2.2021, Savills noted that 32 percent of future house and villa supply will be launched in Thu Duc City while up to 44 percent of future condominium supply is set for this area between now and 2024.
The house and villa market in Ho Chi Minh City continues to see price increases due in large part to low supply. Research from Savills Vietnam showed supply in this segment hit its lowest mark in five years. Meanwhile, prices keep moving upward with most districts seeing increases of 13 percent or greater.
“Historically low supply has driven inevitable price increases, that has spilled to neighboring provinces. With the new government formalized then the near-term hope is for more approvals that will answer the supply shortage,” Vincent Nguyen, Director of Residential Sales, Savills HCMC, said. “Future supply is so far evenly dispersed, providing an array of location choice.”
Looking at the Ho Chi Minh City condominium market, Savills Vietnam reported that sales and supply both decreased in the second quarter of 2021. The consultancy found that 6,800 units at 22 projects would launch during the second half of this year.
While many thought the Ho Chi Minh City serviced apartment market would be decimated by the COVID-19 pandemic, the segment has staved off major declines over the past year.
“COVID-19 has impacted the sector, however not to the extent first thought. Overall SAs are showing remarkable resilience, mostly through captive long-term contracts. FDI commitments remain sound, that will convert to demand in the near-term,” Troy Griffiths, Savills Vietnam Deputy Managing Director, explained.