Thanks to a swift response and rapid recovery, demand and prices for Vietnam condos could both increase this year. That was one of the key takeaways from Colliers International Vietnam’s recently launched Q1 Vietnam Quarterly Knowledge Report.
In Ho Chi Minh City, only 1,800 new units were launched during the first quarter of 2020, a 77.5 percent decrease from the same period last year. A total of 75 percent of the launched condo units were sold despite the fact sales events had to be postponed due to social distancing measures.
Colliers International Vietnam believes selling prices could rise by as much as five percent this year assuming recovery from the COVID-19 pandemic remains on track. As many as 14,000 new condo units could be launched in Ho Chi Minh City could be launched before year’s end.
But this amount isn’t expected to meet the demand for Ho Chi Minh City condo units that remains and could possibly increase in 2020.
See more: Vietnam property market gears up for recovery
It is a similar story in Hanoi where condo prices rose by four percent in the first quarter of this year. And much like Ho Chi Minh City, the capital also saw a steep drop in the number of new units launched.
According to the property consultancy, new condo launches in the first quarter decreased 82.5 percent from the same period last year. A little more than 1,400 units hit the market, the lowest total since 2012.
Developers opted to postpone new launches until later in the year because COVID-19 regulations made it impossible to hold sales events. As many as 15,000 condo units could be released onto the market this year, but Colliers International Vietnam did note some developments in Hanoi may be delayed until next year.
Luxury condo projects are the most likely to be postponed until 2021 since these are reliant on overseas buyers. Developers in this segment have recognized that the purchasing power of foreign real estate investors may be impacted by a weak global economy in the short term and are adjusting accordingly.
