Demand for condo units in Ho Chi Minh City and Hanoi grew in the third quarter with a lack of new supply tightening the market in both cities. Research from Colliers International Vietnam found more units are on the way with the country continuing its recovery from COVID-19.
In the Colliers International Vietnam Real Estate Quarterly Knowledge Report, it was noted that demand for condo units in Ho Chi Minh City has remained strong with many projects recording occupancy rates of up to 90 percent. Despite the country experience a secondary COVID-19 break during July, the condo market emerged unscathed.
“Due to the citizens’ experience in disease prevention, this late July outbreak did not affect the recovery of the apartment market in HCMC. Although it has delayed a few projects, we can still expect a supply of about 14,000 units by the end of this year as the demand for apartments in HCMC is still quite high,” the report noted. “In addition to this, the completion of the Metro subway will create a new look for the central area by the connection between commercial buildings with the Saigon River, the Thu Thien urban area across the river. It also increases interregional connection between the core area and the strong development areas like the East Saigon.”
Meanwhile in Hanoi, demand for condo units is higher than ever, according to Colliers International Vietnam. That’s because no supply hit the market for the better part of 2020 although nearly 6,000 units should be launched before year’s end. Activity is expected to pick up even further in 2021.
“The appearance of new supply in this quarter will lead to a series of new projects launched in the future, meeting the high demand for apartments in Hanoi. However, because the epidemic has affected quite heavily in Hanoi, at least until the beginning of 2021, the growth rate will be normal again,” the report stated. “By the end of 2020, there will be about 12,000 additional apartments to be provided and by the first quarter of 2021 there will be 30,000 apartments.”