Average housing price in Ho Chi Minh City in 2024 reaches a record, 9.39 billion VND/unit

(CLO) By the end of November 2024, 100% of the new apartment supply in Ho Chi Minh City will be luxury apartments, with an average opening price of VND 9.39 billion/apartment.

According to the latest report of the Ho Chi Minh City Real Estate Association (HoREA), in the past 5 years, the number of commercial housing projects approved for investment and approved for investors is too small and has continuously decreased.

Specifically, in 2020, no projects were approved for investment policy, in 2021 there were 7 projects, in 2022 there were 2 projects, in 2023 there were 2 projects. By the end of November 2024, 12 more projects were approved for investment policy, including 1 social housing project.

Illustration photo.

Although in 2024, the number of commercial housing projects approved for investment is nearly equal to the previous four years combined, it is only one-fifth compared to the years before the COVID-19 pandemic.

Similarly, the number of commercial housing products eligible for capital mobilization brought to the market is very small and continuously decreasing. Of which, in 2020 there were 16,895 units, in 2021 there were 14,443 units, in 2022 there were 12,147 units, in 2023 there were 17,753 units, in 11 months of 2024 there were only 1,611 units.

Also according to HoREA's report, in 2020, the number of affordable housing products was only 163 units, accounting for 1%, but from 2021 up to now, there are no more affordable housing products in Ho Chi Minh City.

At the same time, the high-end housing segment continues to account for an increasingly large proportion of the city's housing market. Specifically, in 2020 it will account for 70.6%, in 2021 it will account for 72%, in 2022 it will account for 78.3%, in 2023 it will account for 68.55% and by 2024 it will completely dominate the housing market with 100% high-end housing.

Commenting on this issue, Mr. Le Hoang Chau, Chairman of HoREA, said: Housing prices are still "high", beyond the financial capacity of the majority of people with average and low incomes in society.

"The price of luxury housing in the first 11 months of 2024 is very high, averaging up to 9.39 billion VND/unit, and this is only the primary housing price because the investor registered the housing price with the Department of Construction when setting up the investment project, so the actual selling price of the house on the market is certainly even higher," said Mr. Chau.

Faced with this situation, Mr. Chau agreed with the National Assembly 's pilot resolution on implementing commercial housing projects through agreements on receiving land use rights or having land use rights.

"This Decree allows for a pilot implementation of the land approach through agreements on receiving land use rights or having land use rights to carry out commercial housing projects, where the land is not residential land," Mr. Chau analyzed.

According to the Chairman of HoREA, this method, along with two other methods of accessing land, which are through auctioning land use rights or bidding to select investors, is in line with Vietnam's orientation.

"These methods can increase project supply and increase commercial housing supply, contributing to reducing housing prices," said Mr. Chau.

Source: https://www.congluan.vn/gia-nha-o-binh-quan-tai-tp-hcm-nam-2024-dat-ky-luc-939-ty-dong-can-post328784.html