Land plots in Ho Chi  Minh City saw high sale

At the seminar titled “Safe investment in a volatile market” held by DKRA Vietnam in Ho Chi Minh City on July 5, experts said that the market in the second quarter showed signs of a downturn both in supply and demand, compared to the previous quarter.

According to Pham Lam, general director of DKRA Vietnam, new supply in the land plot segment is concentrated mainly in the north of Ho Chi Minh City. In the second quarter of 2018, DKRA Vietnam recorded about five projects, including a new project and the next phase of five other projects, supplying 483 plots, equal to 50 per cent of the previous quarter's supply. Consumption rate reached about 51 per cent of the previous quarter.

Pham Lam, general director of DKNR Vietnam, announcing the high sales of land plots in the city

"The north of the city leads with 54 per cent of the supply and 46 per cent of the consumption for new projects. The supply in the eastern area of the city declined remarkably, to only 18 per cent compared to the 52 per cent in the first quarter of 2018," Lam said.

In the townhouses and villas segment, eastern Ho Chi Minh City continues to lead the supply and consumption.

In the second quarter of 2018, there were six new projects offering 516 townhouses and villas, equal to 83 per cent of the previous quarter (621 units). Consumption rate reached 88 per cent (about 452 units), a 15 per cent increase compared to the previous quarter.

The land plot segment in Ho Chi Minh City is forecasted to become the leading investment channel in the market

The eastern part of the city continues to lead the market in supply and demand, with 94 per cent of new supply and 90 per cent of the sales.

In the apartment segment, Grade A occupied a large proportion, with new projects concentrated in the east of the city.

In the second quarter of 2018, there were 18 projects supplying about 9,032 units to the market, 87 per cent compared to the previous quarter (10,431 units). Consumption is estimated at 7,302 units (accounting for 81 per cent of the new supply in the quarter).

Grade A leads the whole market with 41 per cent of the supply. In terms of consumption, Grade A apartments continue to have an impressive absorption rate of 88 per cent of the new project supply (about 3,244 units). Like the segment of townhouses and villas, the eastern area now offers the biggest supply with more than 40 per cent.

In the second half of this year, DKRA expected that the land plot segment will remain the top investment channel. However, as the market shows signs of a downturn, buyers need to be more cautious when making investment decisions.

In the apartment segment, supply may decrease in the coming time, fluctuating at 7,000 to 8,000 units.