HCMC apartment market sales slumps to the lowest in a year

[ASEAN NOW News]

Apartment projects in HCMC's Thu Duc City. Photo by VnExpress/Quynh Tran

 

Sales of new apartments in Ho Chi Minh City plunged 68 percent quarter-on-quarter to 1,385 units in the first quarter, the lowest in a year.

 

VN Express reported that the sales downed 30 percent compared to the same period last year, according to housing consultancy DKRA Vietnam.

 

The firm attributed the slump to limited supply, as the number of new apartments put on sale last quarter declined 70 percent against Q4/2021.

 

Many home buyers are more hesitant due to the pandemic, rising prices and developers’ withdrawal from the record Thu Thiem land bid last year, which caused ripple effects on the market, Colliers Vietnam added.

 

Le Quoc Kien, an experienced housing consultant in HCMC, said many investors have exited the rental apartment market on low profitability, dragging demand down even more.

 

Kien said most apartment buyers now intend to occupy their purchases while waiting for a better resell price.

 

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