Apartment price surges in October, but demand slumps

Prices were up 4-10% compared to early 2022 in HCMC and provinces such as Binh Duong and Long An, DKRA Vietnam’s latest report said.

According to Savills Property Price Index, prices of mid-range apartments in HCMC’s Districts 9 and Nha Be increased 13% and 5% in the third quarter against the previous quarter.

A mid-priced apartment costs up to VND10 billion (US$403,200), and a high-end one, VND30 billion.

Surveys in HCMC by VnExpress found prices increased by 10% in the primary market but fell by 10-20% in the secondary market.

Nguyen Mac Hoai Nam, CEO of Nam Phat Consulting Service Company, said primary market prices increased mainly because of higher legal, financial and construction costs.

But in both the primary and secondary markets, liquidity decreased sharply amid credit tightening by banks and a wait-and-see attitude adopted by buyers.

Many people are waiting to fish the bottom, according to experts.

The DKRA report said many apartment projects had an absorption rate of only 20% with few touching 50%.