A built townhouse area has been completed in Thu Duc district. Photo: Phuong Uyen

Investing in buying land to save, in 2015 Mr. Pham Thong, a retired official in Cu Chi, chose to buy 2 townhouses under a project in Hiep Binh Phuoc peninsula with the price of only VND 32 million / m2. At that time, the market only recovered soon, investors still have not completely regained their confidence in real estate, so spending tens of billions on 2 grounds is considered reckless.

"At that time, I just thought of buying to save later for my children, not high interest rates. Even salespeople only dare to advise that after 2-3 years, the project will gradually improve, the price may increase by 50-100% compared to the time of purchase. Who would have thought my two town houses were nearly three times more expensive than the purchase price, ”Mr. Thong said.

According to the survey, the home market in Ho Chi Minh City recorded a continuous growth trend from 2017 to the present. If quarter 1/2018, the price of primary villas and townhouses recorded an increase of 35% over the same period of 2017, then in quarter 1/2019, the price of townhouses / villas continued to increase nearly 30% compared to the same period of 2018 Particularly for the secondary market, house prices associated with land continue to increase by nearly 50-60%. The most impressive growth is built commercial townhouses. Specifically, if 2017, the primary selling price reaches USD 2,400 / m2, the end of 2018 will increase to USD 5,300 / m2, an increase of 2.2 times compared to 2017. In the first three months of 2019, the price of commercial houses trade increased by 2-3% compared to the end of 2018.

New projects in Ho Chi Minh City are increasingly scarce
High-rise house prices go up. Photo: Phuong Uyen

According to the survey, the East area has the largest increase in price of villas and townhouses. In Thu Duc district, KĐT Van Phuc Riverside City project is located along the axis of National Highway 13 with selling prices increasing dramatically in the last 3 years. Specifically, in August 2016, a townhouse in this project was offered at VND4.4-5.5 billion (equivalent to VND50-53 million / m2). At the same time in 2018, the above areas offered price of 8-9.5 billion (up to 94-110 million / m2), currently at 10-13 billion dong / unit. Particularly, the beautiful locations in the Southeast have prices of up to VND 15-17 billion (equivalent to VND 120-135 million / m2). If compared with the price of 28-35 million / m2 at the beginning of the sale, the current price of land in this project has increased at least twice and the highest is 4 times.

Shophouse is the strongest product line in the project with an average of 135-160 million VND / m2. At the time of July 2017, the price of shophouse on Nguyen Thi Nhung street with an area of ​​140m2 is 10 billion dong, currently offering from 19.5-22 billion dong. Primary price of commercial townhouses at the end of 2017 is only about 72 million / m2, 2018 increased to 110 million / m2 and now touches 140-160 million / m2.

With the area of ​​District 2, the single villa area of ​​322 m2 in the Sala Mai (Mai Chi Tho) project in July 2018 has been recorded at VND 62 billion / unit, by March 2019, the average price has reached about VND 65 billion / unit, up nearly VND 3 billion after only 6 months. Area of ​​Diamond Island, in early 2018 Saigon Mystery Villas project offered for sale at VND 83-110 million / m2 is now at VND 120-200 million / m2. Commercial townhouses in the D2Eight Dong Van Cong project in 2018 also cost VND 170 million / m2, which has now reached an average of about VND 250 million / m2. Villa Park project (district 9) in January 2018 offered primary price of 43-47 million / m2, now increased to 65-70 million / m2. Townhouses and villas of projects located near the center are priced at 81-120 million VND / m2.

The tendency to increase the price of terrestrial houses is considered to be due to the supply of this segment has become less and less, the inventory has declined sharply while the new project has not yet come out. In addition, the continuous increase in land prices in coastal provinces is also a factor affecting the price of HCMC land. The scarcity of supplies may be resolved in the coming years when many large land banks in Ho Chi Minh City have been approved for implementation. Although there is more new supply, housing prices in Ho Chi Minh City will be difficult to reduce or slow down due to high demand and housing prices in neighboring provinces also tend to increase.

Phuong Uyen

(According to Youth Online)