HCMC Apartment for Sale Market 4Q21

New supply recovery in “new normality”

New supply has bounced back with 6,487 units, up 4 times compared to the previous quarter, contributing to the total supply of this year at over 18,000 units. Despite existing post-covid-19 restrictions, 59.6% of total supply mostly came from mid & high-end projects, such as Masterise Centre Point, Happy One Premium and West Gate Park, particularly high-end grade, contributed 48.2% to the total supply. Easing approvals and increasing resolving legal issues of HCMC authority also made contributions to this recovery. 

Strong demand after social distancing

In 4Q21, total transaction volume reached 5,815 units, up 66.7% y-o-y after the well-controlled pandemic and easy participation in direct launching events. Additionally, compressed demand in the social distancing time frame was a reason for an increase of 92.7% towards the sales rate in 4Q21. A balance between supply and demand, especially not much disparities between total units taken in high-end and mid-end grade, with the average quantity was around 2,000 units per grade.

Positive price escalation in the primary market

The average primary selling price achieved USD 2,732 per sqm[1], up 1.8% q-o-q and 10.5% y-o-y. In High-end segment, average primary selling price reached USD 4,512 per sqm,up 1% y-o-y but down 11.4% q-o-q, mainly caused by lower-than-average prices in Masterise Central Point project due to its remote location. The project price, however, is considerably high compared to other projects in the surrounding area. Mid-end projects such as West Gate Park and Happy One Premier had better asking prices, with the primary selling price at USD 1,326 per sqm and USD 2,054 per sqm, respectively.