Current Land Prices Growth In HCMC 2019
The land prices in Ho Chi Minh City have increased roughly 3 timer per every 10 years over the course of the past 20 years. Whilst this is great news for landowners, this is having an effect on resale possibilities with most units now outside the reach of the majority of the Saigonese population.
In general, In each decade, prices usually rise at their highest ferocity in the first 2-4 years of the decade and will then eventually then decline in the next 3-5 years, said Tran Khanh Quang, CEO of HCMC-based real estate firm Viet An Hoa.
The remaining years, prices stay flat as the market waits for a recovery, said Quang, a market observer for 22 years.
The question lends itself to do you develop now or wait for the first couple of years of the net decade for prices to rise further at the risk of pricing yourself out of the market?
Given BM Internationals solid knowledge of construction and development team, it might be worth investing a bit of time for a consultation. As Vinh Dang, Director of BM International Group commented, “Although there is a fairly simple formula for land prices rises being that prices in the central business districts often initiate the increase by starting slowly, which then leads to prices in the suburb rising fast and later, neighbouring provinces, he added. However, having an understanding of the political landscape, other investors and developers in the area and what they are planning all need to be taken into account and that’s what part of our full turnkey construction service offers.
Quang also noted that In the last three years, real estate prices have overcooked to where transaction prices surpassing units’ value.
Echoing him, Huynh Phuoc Nghia, deputy head of International Business at the University of Economics HCMC, said that land prices have doubled in the 2016-2018 period and surged 4-10 times from 2009-2019.
The rising prices have lowered the chance for local residents to own property. They can also end up hindering the development of the manufacturing sector and increase the costs of goods and services, he added.
Saigon apartment prices surged 11.8% year-on-year as of Q3, compared to 3.9% in Hanoi, according to a report by a real estate trading site.
An average apartment price in Saigon in Q3 was listed at VND37 million ($1,595), 27.6 percent higher than Hanoi at VND29 million ($1,250), it added.
According to the city Department of Statistics, Saigon’s base population at the end of 2018 was 8.85 million people.