Boom time for housing market in Ho Chi Minh city

According to the survey conducted in mid-February, 137 new property projects were launched in Ho Chi Minh City with 40,055 units worth Bt183 billion. This is a rise of 184 per cent from 14,070 units that were available for sale last year. About 96 per cent of the 40,055 units are already booked. 

Residential projects are sold on paper in Ho Chi Minh City, which is different from the Thai market where ready-to-stay homes are sold, AREA president Dr Sopon Pornchokchai said. The demand for residential projects is consequent to the country's economic growth, he said.

Condominiums are popular in Ho Chi Minh City because of paucity of land compared to the demand in the market. The average price for a residence is Bt4.57 million which is higher than Bangkok prices, which average at Bt3 million per unit.

Most residential projects focus on the higher end of the market because most buyers go home-shopping either for investment or speculation. Most investors buy with a view to generate rental income.

This year, Vietnam's government plans to develop residential projects for the middle- and lower-income market. This could translate as an opportunity for Thai and foreign investors, Sopon said.

Earlier, CB Richard Ellis had reported that supply of Grade-A office space remained tight in the central business district areas of Hong Kong, Singapore and Ho Chi Minh City, with vacancy rates hovering at 5 per cent or lower last year.