According to a report by real estate service provider DKRA Vietnam on the housing market in 2021, a total of 10,749 apartments were sold in the city, compared to 15,200 units in 2020 and nearly 23,000 units in 2019 and 25,000 in 36 000 units per year. over the period 2015-2018. Last year’s sales accounted for 79% of supply.

The situation of higher prices and lower liquidity is a result of low supply, according to the report. Investors have gradually shifted to the high-end and luxury housing segments, ignoring the affordable segment, he added.

Higher prices for apartments in the primary market were also due to rising input costs.

Last year, 22 real estate projects, nine new and new phases out of 13 operational, launched 13,583 apartments, down 23% compared to 2020. Supply and demand fell sharply compared to previous years for hit their lowest level since 2015, according to the report.

Category A (high-end) apartments continued to dominate the market, accounting for 72% of supply and 69% of sales.

This is the third year in a row that the market has seen a shortage of Class C apartments priced below 30 million VND ($1,300) per square meter. Meanwhile, super luxury apartments have established a new price level of almost VND 400 million per square meter.

According to DKRA Vietnam, the HCMC apartment market faced the greatest difficulties in more than half a decade last year, including the mismatch of supply and demand (excess of high-end apartments but shortage of low cost apartments), unresolved issues in project licensing procedures and Covid -19 homes.

The low supply of apartments has pushed up prices and the complicated pandemic situation has reduced demand from those who wanted to buy apartments to live in or as an investment.

The firm predicts that if the pandemic is brought under control as in the fourth quarter of last year, the economy continues to recover and legal issues related to project licensing are resolved, housing supply and demand will improve. However, reducing housing prices will remain a challenge as land prices increase and material prices as well as financial, construction and selling costs have increased.