Greater HCMC Ready-built Landed Property 2Q21
Market recovery faces the fourth COVID-19 wave headwind
Supply remains dynamic in the satellite provinces of HCMC
The new launch  of the Greater HCMC area reached 1,843 units in 2Q21. New supply in HCMC remained limited, with only 173 units, mainly coming from small-scale townhouse projects in Tan Phu and District 12. Dong Nai province recorded the highest new launch with 50.3% of the basket with 927 units, far exceeding the second place of BR-VT with 504 units. However, most of the launches took place before the fourth outbreak in Greater HCMC which led to many launching events postponed.
Stable demand, but slowing down at quarter end due to pandemic
The total take-up of Greater HCMC reached 1,781 units, slightly decreasing at 8.8% q-o-q. In tandem with limited supply, HCMC recorded only 183 units sold, decreasing 41.2% q-o-q. Similarly, Binh Duong and Long An recorded low sales at over 100 units for each province.
Meanwhile, the sales volume primarily came from large-scale integrated projects in Dong Nai and BR-VT (865 and 500 units, respectively). However, it is noted that most of the sales happened during April and early May. The fourth outbreak partly reduced the number of transactions at the end of 2Q21 because launch sales events and project visits were hindered.
Prices increasing, together with attractive sales programmes
In 2Q21, the RBL average primary price in Greater HCMC was recorded at USD 2,849 per sqm land. The whole market continued to register a strong price growth of 15.9% y-o-y and 7.9% q-o-q. This high increase was mainly driven by large-scale integrated projects in Thu Duc City, Dong Nai and Long An, and projects located in highly urbanised areas in Binh Duong.
In response to Covid-19, many developers turned to online methods to market their products. They introduced attractive sale offers to attract customers, such as extending payment schedules, zero interest purchase for an extended period and valuable gifts.
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Outlook: Satellite provinces will remain the spotlight for RBL products
The Covid-19 impact on sale activities, combined with existing legal issues in HCM, will make the total RBL supply for the remaining of 2021 subject to uncertainty, varying from 1,000 – 1,500 units. Meanwhile, the surrounding provinces will record an abundant total supply of about 4,000 units, mainly concentrated in Dong Nai and BR-VT.
With the limited land banks situation in HCMC and the new entrance of high-quality integrated projects in the satellite provinces, the overall primary price of RBL in the Greater HCMC area will keep increasing strongly.
- Greater HCMC area consists of HCMC, Binh Duong, Dong Nai, Ba Ria – Vung Tau and Long An markets.
- Prices exclude VAT and sinking fund/maintenance fee. Price per sqm land = total unit value / size of the land plot on which the property is built.
- Official launch: Projects are considered as officially launched when the Sale Purchase Agreements are signed, typically upon infrastructure completion.
Source: JLL Research