Report of CBRE Vietnam
The mid-priced apartment segment in Ho Chi Minh City is developing strongly with demand and supply and liquidity all looking up, especially in the eastern part, experts said. A report from market researcher CBRE Vietnam said the segment, with prices ranging from $800 to $1,500/sqm, accounted for 60 percent of third quarter launches.
The HCM City Real Estate Association had predicted at the beginning of this year that the property market would see a strong restructure, with developers switching from luxury to mid-priced apartments. It had explained that the re-balancing would take place to resolve the mismatch between demand, which was overwhelmingly for cheaper units, and supply, which was skewed in favor of high-priced ones.
Dau Tu newspaper (Vietnam Investment Review) quoted Vinh Kiem, an investor in HCM City, as saying that mid-range apartments built by prestigious developers bring solid returns to buyers. Since prices are not high, an investor can buy several at a time, according to Kiem. Last May, he bought two apartments in District 9 at around 1.7 billion VND each and now they have both appreciated by 300 million VND. But he is waiting for the prices to rise even further.
For people looking to buy houses to live in them too, mid-priced apartments are a good choice since many are in good locations and offer many amenities. To meet the growing demand in this segment, several major developers like Vingroup, Hung Thinh and Him Lam Land have launched many projects. But projects in the eastern part of the city, in places like districts 9 and 2, are customers’ favorites and are thought to bring profits of 20-50 percent to buyers.
Investors said apartments here are in high demand thanks to the excellent and constantly developing infrastructure, including the city’s first metro route. The news that authorities are planning to build the Rach Chiec Sports Centre in District 2 for SEA Games 31 has sparked off even more interest in the area. Investors now expect the market to remain strong for the next two years.