Developers struggle to sell high-end apartments in HCMC
Developers struggle to sell high-end apartments in HCMC
The number of high-end apartments remaining unsold in HCMC soared by 74 percent year-on-year in the last quarter of 2020 as demand slumped.
Apartment buildings in District 2, Ho Chi Minh City. Photo by VnExpress/Quynh Tran.
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Only 5,007 were sold in the quarter, according to real estate consultancy CBRE. Nearly 6,700 units at six projects had entered the market in the period. Overall new apartment supply topped 17,200 units.
The high-end segment, with prices of $2,000-4,000 per square meter, accounted for 76 percent of the country's total apartment supply.
According to the Ho Chi Minh City Real Estate Association (HoREA), the oversupply of high-end apartments is causing concern by making the real estate market unsustainable.
According to its chairman, Le Hoang Chau, some developers registered their projects with the Department of Construction with low prices but later hiked them to high-end levels to increase their profits.
The excessive supply of high-end apartments and a dearth of affordable ones has affected low- and middle-income people.
Besides, over 60 percent of high-end apartments are bought by speculators, which is threatening the sustainable development of the housing market, HoREA said.
