The land prices in some outer districts of HCM City including Binh Chanh, Binh Tan, and District 9 have increased by 20-40% in 2016, according to real estate developer and service provider CBRE.
The prices for plots of land in HCM City's outer areas has increased
One of the reasons for the price hike is the completion of various infrastructure projects. However, CBRE warned that most of the prices were provided by the sellers so may not accurately reflect current market demand.
Meanwhile, housing prices haven’t registered any significant change. Last year, HCM City had 3,062 new apartments, an increase of 40% compared to 2015.
In the outer parts of the city such as District 12, Thu Duc and Go Vap districts, the prices increased by 15%. However, the house prices in District 2 decreased by 3% because new projects offer affordable housing and are located in less desirable locations.
2,304 apartments have been sold last year, most of which are from new projects. In the fourth quarter of 2016, two projects, LaVila with 238 apartments in Nha Be District
and The Pegasuits with 69 apartments in District 8, were completed and successfully found buyers for most of the apartments in a few months.
CBRE predicts that investors will expand businesses in 2017 and coming years.
Duong Thuy Dung, director of real estate research and consultancy department at CBRE Vietnam, said, "We don't think there are a lot of direct competition. But no one can judge the absorption rate of new projects in the outer part of the city so there will be small projects developed to test the water."
Dung also doesn't think many luxury projects will be developed, except some projects in District 2, so average prices will be lowered.