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Decrease in housing supply in HCMC |
The report said the lowest supply of new apartments for sale has started since 2019. Just about 970 apartments were built in the second quarter this year, down 41 percent compared to the previous quarter and down 90 percent over the same period last year.
The culprit of scarce new supply is the delay in the legal completion process and the project launch and sale procedures. Most of the new supply in the quarter came from the East with subsequent sales of existing projects and the North with the newly launched mid-end segment project named 9X An Suong in Hoc Mon outlying district.
Therefore, the North and East areas become the center of transactions thanks to the prospects of infrastructure development in the area and the payment incentives offered by investors.
Because the central land fund gradually becomes scarce and expensive, investors tend to build apartment buildings in non-central business district areas. The total supply of housing in HCMC from 2023 onwards is estimated to reach 190,000 apartments. More housing projects will be developed in Thu Duc City in the future.
