Prices of land have risen more sharply than those of townhouses and villas built in the same area, according to a report of property management and consulting firm CBRE Vietnam.
In the first quarter, the market for villas and townhouses has got five new projects, providing an additional 500 homes. All of these projects are located east pf HCMC with four projects in District 9 and one in Thu Duc District.
Prices of villas and townhouses have remained quite stable in most areas. In District 2, the average selling price has increased by 1.4% compared to the previous quarter, while in District 9, it has increased by 1.9%. other inner-city districts such as Binh Thanh, Go Vap and District 12 have seen price increases of 1.5-3% against the previous quarter.
Meanwhile, the land market has seen more aggressive price movements. In the bustling areas of District 2 such as Thanh My Loi Ward and Binh Trung Dong Ward, land prices have surged by 16-40% over the previous quarter.
In Nha Be, thu Duc, Binh Chanh and District 12, selling prices have grown by 25% compared to the previous quarter. Prices of land plots in Phu Huu Ward and Phuoc Long B Ward in District 9 have also edged up strongly.
In terms of sales, 50-90% of land plots, especially in well-located projects, have found buyers after opening for sale. In the last quarter, more than 850 land plots were successfully transacted, up 14% over the previous quarter.
Experts say the land market has been faring better thanks to the development of traffic infrastructure in suburban areas. Land plots along the metro lines as well as HCMC-Long Thanh-Dau Giay expressway, Ben Luc-Long Thanh expressway and My Phuoc-Tan Van-Nhon Trach road all have seen higher prices and higher liquidity.
CBRE said that in the coming time, large-scale projects will be launched in many parts of the city. At the same time, the development of infrastructure and the improvement of transport connectivity will lead land prices to shoot up.
However, unlike the market boom in 2007, CBRE believe that investors would be more cautious and careful in making their investment decisions, making the land market more stable.