The HCM City apartment market went through a supply boom in the second quarter of 2022 compared to a lacklustre first quarter, and is expected to completely recover from by 2023, according to global real estate consultancy CBRE Viet Nam.
|HCM City saw a massive spike in apartment supply in the second quarter of this year.- Photo danviet.vn |
Speaking at a conference in HCM City Tuesday, Vo Huynh Tuan Kiet, director of CBRE’s housing department, said after a big drop in supply year-on-year in the first quarter, primary market supply has shot past 12,000 apartments.
In the first quarter there were only around 1,000 apartments on sale, he said.
The supply in the first half of this year has been nearly equal to that of the entire 2021, he said.
High-class apartments have accounted for around 70 per cent of the supply since 2020.
The average price of primary stocks has been rising over the years due to an increase in high-class and luxury apartments, he said.
“In 2020 – 21 the COVID pandemic hindered many real estate projects’ development and negatively affected the market. But now new supply and sales will begin to recover in 2022, and completely recover by 2023.”
The townhouse and villa segments have been modest in terms of new supply, with only around 600 new units entering the market during the first half.
Prices have risen by more than 40 per cent year-on-year, the highest rate in the last three years.
The next six months are expected to be promising due to major infrastructure projects such as the Thu Thiem 2 bridge connecting Thu Duc City with downtown and Long Thanh Airport in Dong Nai Province set to finish in October.
Foreign investors are returning to the market after the pandemic to look for investment opportunities, he said.
Supply of new apartments in 2022 is expected to be up to 24,000.
New property owners in the Asia – Pacific region are getting younger and younger, and their needs and mindsets are different from the traditional customer base. Generation Z (1997 onwards) has great potential in the next five years, Kiet added.