Downturn Persists in HCMC’s Luxury Apartment Sector Despite Price Declines

Despite a 12% decrease in prices, the high-end apartment sector in HCMC experienced a mere 2.3% absorption rate in the last quarter, as per recent reports.

Without any new additions to the supply in the last quarter, real estate firm Jones Lang LaSalle Vietnam (JLL) reported that only 39 out of the 1693 new units remaining from the first three quarters were sold, resulting in a 2.3% absorption rate.

In the third quarter of 2023, a total of 2,500 out of 3,600 new units were sold, achieving a 55% absorption rate, according to a report from real estate agency CBRE Vietnam.

Due to perceived low demand in the market, developers exercised caution, leading to a decline in supply, with new projects postponed to 2024.

In the final quarter of 2023, the average price of new projects in the segment witnessed a year-on-year decrease of 12.7%, reaching VND120 million (US$5,087) per square meter, as reported by JLL. However, there was a 1.4% increase in the secondary market, primarily observed in newly completed projects situated in favorable locations.

Le Hoang Chau, President of the HCMC Real Estate Association, noted that premium units constituted 66.4% of the new housing supply, with mid-priced units making up the remainder. Notably, no new affordable projects were introduced during this period.