Updated : 8:18 AM (GMT+0700), Fri, July 16, 2010
Average apartment prices in Ho Chi Minh City jumped in the second quarter despite a significant rise in supply because of the launch of several high-priced projects, according to Savills Vietnam.
The property consultancy said in its quarterly report that the average price in the April-June period was $1,370 per square meter, up nearly 40 percent from the previous quarter.
Average Grade A prices skyrocketed 68 percent after new projects in good locations were sold for high prices, providing a new price benchmark.
"Due to a number of luxury products entering the market with much higher pricing, such as New Pearl, Xi Riverview Palace, and Diamond Island, the average price of new to market products in the second quarter is higher," Brett Ashton, managing director of Savills Vietnam, said.
The company estimated 11,200 primary apartments were put up for sale in the second quarter, a quarter-on-quarter rise of 24 percent. Secondary supply rose by 2,160 units to around 49,400.
There were 14 new projects with about 3,100 apartments in the primary market, with Binh Tan, Binh Thanh and District 2 being the top three districts in terms of supply. Districts 7, Binh Thanh, and 2 remained the top locations for the secondary market.
The Grade A apartment segment fared better in the April-June period because of good sales performance by new projects. In the first quarter only 90 units had been sold.
Savills predicts 16 new projects with an estimated 5,800 apartments to begin sales in the second half. There are 28,500 unites slated for completion between now and 2012, with Tan Phu District expected to have the largest number with 27 percent.
The office and serviced apartments for lease segments also posted growth in terms of both rent and supply, signaling a recovery of the market.
Ho Chi Minh City has 147 office buildings of all grades at the moment, with a total leasable area of around 952,000 square meters, a 16 percent rise from the previous quarter. Savills said 11 new buildings with a combined 129,000 square meters opened their doors in the second quarter.
Vincom Tower, A&B Tower, and Bao Viet Building helped increase supply in District 1 by 20 percent, enabling the area to retain its 57 percent market share.
Despite the rising supply, the average office rent for all grades and districts inched up 5 percent to $32 per square meter per month.
The company said the office occupancy of 88 percent did not vary much though 129,000 square meters of new space became available in April-June. The majority of office transactions were for smaller spaces, usually less than 100 square meters, with Grade B still being a favorite option for existing companies as well as new investors.
Savills said 20 office buildings with a total of 153,000 square meters will hit the market by the end of this year.
As for the serviced apartment segment, it said there were 49 buildings of all grades with 2,770 serviced apartments for lease in Ho Chi Minh City.
Districts 1, 7, and 3 remain the top locations, accounting for a total market share of around 82 percent.
The occupancy rate was unchanged at 91 percent but the monthly rent averaged $24 per square meter, up 5 percent. Grade A apartments leased at $30, a 2.7 percent rise over the previous quarter.
The property consultancy said in its quarterly report that the average price in the April-June period was $1,370 per square meter, up nearly 40 percent from the previous quarter.
Average Grade A prices skyrocketed 68 percent after new projects in good locations were sold for high prices, providing a new price benchmark.
"Due to a number of luxury products entering the market with much higher pricing, such as New Pearl, Xi Riverview Palace, and Diamond Island, the average price of new to market products in the second quarter is higher," Brett Ashton, managing director of Savills Vietnam, said.
The company estimated 11,200 primary apartments were put up for sale in the second quarter, a quarter-on-quarter rise of 24 percent. Secondary supply rose by 2,160 units to around 49,400.
There were 14 new projects with about 3,100 apartments in the primary market, with Binh Tan, Binh Thanh and District 2 being the top three districts in terms of supply. Districts 7, Binh Thanh, and 2 remained the top locations for the secondary market.
The Grade A apartment segment fared better in the April-June period because of good sales performance by new projects. In the first quarter only 90 units had been sold.
Savills predicts 16 new projects with an estimated 5,800 apartments to begin sales in the second half. There are 28,500 unites slated for completion between now and 2012, with Tan Phu District expected to have the largest number with 27 percent.
The office and serviced apartments for lease segments also posted growth in terms of both rent and supply, signaling a recovery of the market.
Ho Chi Minh City has 147 office buildings of all grades at the moment, with a total leasable area of around 952,000 square meters, a 16 percent rise from the previous quarter. Savills said 11 new buildings with a combined 129,000 square meters opened their doors in the second quarter.
Vincom Tower, A&B Tower, and Bao Viet Building helped increase supply in District 1 by 20 percent, enabling the area to retain its 57 percent market share.
Despite the rising supply, the average office rent for all grades and districts inched up 5 percent to $32 per square meter per month.
The company said the office occupancy of 88 percent did not vary much though 129,000 square meters of new space became available in April-June. The majority of office transactions were for smaller spaces, usually less than 100 square meters, with Grade B still being a favorite option for existing companies as well as new investors.
Savills said 20 office buildings with a total of 153,000 square meters will hit the market by the end of this year.
As for the serviced apartment segment, it said there were 49 buildings of all grades with 2,770 serviced apartments for lease in Ho Chi Minh City.
Districts 1, 7, and 3 remain the top locations, accounting for a total market share of around 82 percent.
The occupancy rate was unchanged at 91 percent but the monthly rent averaged $24 per square meter, up 5 percent. Grade A apartments leased at $30, a 2.7 percent rise over the previous quarter.
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