New high-end apartment supply up 120 pct
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In the first six months, 7,040 new high-end housing units were launched in HCMC, up 123 percent year-on-year, accounting for 59 percent of new supply.
Mid-range supply rose 295 percent to 4,908 units, accounting for 49 percent of new supply, while no new affordable unit was launched, according to a report by the Ho Chi Minh City Department of Construction.
This shows an imbalance in the HCMC real estate market where developers focus on the high-profit, high-end and luxury market while ignoring the affordable segment, boasting strong demand.
The HCMC Real Estate Association (HoREA) predicts the imbalance would cause negative consequences in housing security.
HCMC plans to increase its residential area per capita to 21.04 square meters by the end of the year, up nearly 2 percent from now. To do this, it needs an additional eight million square meters.
Questions & Answers
Q.What proportion of new housing supply in HCMC did high-end units represent in the first six months?
What proportion of new housing supply in HCMC did high-end units represent in the first six months?
High-end housing units accounted for 59 percent of the total new supply launched in Ho Chi Minh City during the first six months of the year. This figure represents 7,040 new units.
Q.How many new mid-range housing units were launched in the first half of the year?
How many new mid-range housing units were launched in the first half of the year?
In the first six months, 4,908 new mid-range housing units were launched. This represents a substantial increase of 295 percent compared to the same period last year.
Q.What are the potential negative consequences of the current market imbalance?
What are the potential negative consequences of the current market imbalance?
The Ho Chi Minh City Real Estate Association predicts that the market imbalance, where affordable units are ignored despite strong demand, could lead to negative consequences for housing security within the city.
Q.By how much does HCMC plan to increase its residential area per person this year?
By how much does HCMC plan to increase its residential area per person this year?
HCMC aims to increase its residential area per capita to 21.04 square meters by the end of the year. This target represents an increase of nearly two percent from the current figure.