Real estate agency CBRE Vietnam noted that in the third quarter of 2023, the average primary market price of townhouses in Ho Chi Minh was around VND255 million per square meter.
However, there have been fewer transactions and less demand in the primary and secondary markets, with the average price in the secondary market remaining relatively stable over the past nine months as buyers wait for the market to recover.
There were only 338 townhouses listed for sale in the primary market during 2023. Most of them belonged to the luxury segment in Thu Duc City, explained Trang Bui, CEO of C&W Vietnam.
The high sales prices of these projects in the luxury market have significantly increased the average primary price of townhouses across the market.
“This is what pushed the average price of townhouses in the primary market in HCMC to continuously increase, eventually peaking at over VND350 million per square meter,” she explained.
Townhouse prices have also been affected by rising construction costs, materials and labor, as well as rising land prices in HCMC, according to a representative of real estate consultant SolReal.
He pointed out that land prices continue to increase every year, without ever decreasing, so townhouse prices have followed the same path.
Additionally, townhouses are one of the best assets for both investment and housing needs, which means that this type of property usually attracts a lot of interest from buyers, especially in HCMC, where there is not much land available for low-rise buildings, the representative said. .
“Supply has been decreasing gradually over the years, so townhouse prices are unlikely to decline, especially for projects that have successfully passed all legal procedures,” he said, adding that even though supply was low – driving prices up – demand was also low. low because “the segment was inactive mainly due to general market sentiment and limited and expensive supply.”
Trang agreed, saying people were more cautious about HCMC’s townhouse segment in 2023 than in previous years, with most buyers postponing purchases to better observe the market.
Given the inactive real estate market and global economic recession, this segment is not currently a top priority for buyers, she said.
C&W hypothesized that around 4,200 new townhouses would be built between 2024 and 2026, mainly in the eastern and southern districts of HCMC.
