Savills Blog

HCMC’s Residential Performance in H1.2021

Savills H1 market report commented that despite Covid, secondary prices in the villa/townhouse segment increased 13% year-on-year (YoY). This was driven by high demand, particularly in larger, mixed-use projects.

For the first half of 2021, residential primary supply was limited and selling prices increased. In particular, apartment primary supply decreased -38% YoY to 5,800 units and villa/townhouse decreased -44% YoY to 770 dwellings.

Both segments had 50% of H1 sales, in which apartment sold 3,400 units and villa/townhouse sold approximately 600 dwellings.

HCMC’s Residential Performance in H1.2021


Ms Vo Thi Khanh Trang, Associate Director of Research, commented, "Limited new supply and low inventory resulted in low sales and price increases. In Q2/2021, 40% of apartment projects increased their prices by up to 15% QoQ; new phases of existing projects increased their prices by 10% compared to previous phases.”

Ms Trang added, “In the villa/townhouse segment, selling prices in the secondary market increased 13% YoY. Villas/townhouses, especially those in mixed-use projects, have attracted investors’ attention and absorbed well thanks to the Vietnamese preferring landed property."

Bà Võ Thị Khánh Trang, Phó giám đốc Bộ phận Nghiên cứu, Savills Việt Nam

In H2/2021, future apartment supply is limited with approximately 6,700 units from 22 projects, of which 47% is Grade C. The pandemic has delayed launches resulting in limited supply for Q3/2021. Experts predict that projects will adopt digital marketing and sales strategies to approach buyers in Q4.

By 2023, future residential supply will be concentrated in the east of the city, accounting for 44% of future apartment supply and 32% of future villa/townhouse supply. Ms Trang added “The east of the city increasingly attracts developers thanks to its improving infrastructure and rapid urbanization. We expect that the upgrading and expansion of major roads will support good and stable real estate market development.

HCMC’s Residential Performance in H1.2021

In the next six months, the real estate market in Ho Chi Minh City will continue to be challenged by the pandemic. However, this time provides the opportunity for developers to generate agile, flexible solutions and effective sale strategies to recover post-pandemic

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