Vo Hong Thang, Deputy director, DKRA Vietnam

In the city, the market experienced a significant decrease in supply and consumption in the apartments, townhouses, and villa segments, with supply increasing on-quarter but still at a low level, equivalent to the same period last year. The land plot segment did not have many changes compared to Q4/2021. As for resort real estate, the market recorded positive signals from villas and resort townhouses and shophouses.

Specifically, the land plot segment in the first quarter of 2022 in the market of Ho Chi Minh City and neighbouring provinces recorded 11 projects for sale with a supply of over 1,800 products, equivalent to the level in Q4/2021, an increase of 32 per cent over the same period last year.

Consumption volume reached about 1,240 units, equivalent to 68 per cent of new supply, a slight increase of 6 per cent compared to the consumption of the previous quarter and the same period in 2021.

The land plot market in the vicinity continues to occupy a key position in the total new supply due to the increasingly scarce land fund in Ho Chi Minh City. Long An province led the whole market when accounting for 43 per cent of supply and 56 per cent of new consumption in the quarter.

The apartment market recorded 18 projects for sale (about 3,400 units) in the last quarter. Projects continue to focus mainly on Ho Chi Minh City and Binh Duong province.

New supply equals 42 per cent compared to the last quarter of 2021 (more than 8,000 units) and equals 62 per cent compared to that period. Consumption volume reached about 2,600 units, equal to 76 per cent of the new supply and equal to 59 per cent compared to the same period in 2021.

Particularly in Ho Chi Minh City, supply decreased significantly, in which the Grade B apartment segment in the west area leads the market. The new supply of townhouses and villas in Ho Chi Minh City and neighbouring provinces also decreased sharply.

In the first quarter, the market received 600 units for sale from 12 projects, only 17 per cent compared to the previous quarter and 31 per cent compared to the same period last year.

The consumption rate reached 71 per cent, equivalent to 432 units. This is equal to 18 per cent compared to Q4/2021 and equal to 65 per cent compared to the same period in 2021. New supply is concentrated in Ho Chi Minh City.

The primary price level increased by 3-5 per cent due to the rise in input costs, especially in Dong Nai province. There, the primary selling price increased 8-12 per cent compared to the previous quarter.

According to our forecasts, the new supply and demand of the land plot segment in the second quarter of 2022 may increase slightly compared to the same period in 2021, mainly concentrated in markets adjacent to Ho Chi Minh City such as Duc Hoa and Can Giuoc. Still, Ho Chi Minh City continues to be short of new supply and land plots continue to be selected as the leading investment channel.

New supply and demand in the townhouse and villa segment may increase compared to Q1/2022. Supply fluctuates around 1,900 units, concentrated in some localities such as Ho Chi Minh City and Dong Nai province. Tay Ninh province continues to be short of new supply. In Ho Chi Minh City, the east area is still leading in terms of supply and consumption of the whole market.

With resort real estate, the new supply of condotels and resort villas may increase compared to the first quarter, mainly in familiar markets such as Ba Ria-Vung Tau, Danang, Quang Nam, Binh Thuan, and Thanh Hoa.

The overall demand in the market is still expected to increase slightly compared to the previous quarter, with transactions focused mainly on resort townhouses, shophouses, resort villas, and initiatives from big, reputable developers. In addition, the integrated resort model continues to receive plenty of attention from buyers.