These projects include both new projects launching first phase and old projects launching subsequent phases that is normally from 18 to 20 projects launched per quarter on average.
There were 4,423 launched units in the first three months, decreasing by 46 per cent quarter on quarter and 54 per cent year on year.
Units from projects that launched the first phase accounted for 60 per cent of total new launched units.
In terms of market segmentation, mid-end segment accounted for 55 per cent of total new supply in the first quarter of the year. This segmentation is expected to support a sustainable growth for Ho Chi Minh City by focusing on end-users.
In terms of location, Ho Chi Minh City’s condominium market continued to expand towards the East and the South, with new projects in Districts 2, 8, 9 and Binh Chanh district.
According to CBRE, good sold rates were recorded in all segments in the context of limited supply. High sold rate from 90 per cent to 100 per cent was observed at projects from reputable developers with reasonable price.
Total number of sold units dropped purely because of the reduction in new launch supply. 5,924 units were sold in the first quarter this year, a decrease of 28 per cent quarter on quarter and 39 per cent year on year.
Total number of sold units was 1,500 units higher than new launch, indicating that the market is absorbing inventories from previous launched projects.
The average primary selling price in the first three months of 2019 was $1,764 per square metres, representing an increase of 3.1 per cent quarter on quarter and 14.9 per cent year on year.
This price growth rate was partly due to the emergence of some luxury projects with high selling price. In general, new luxury projects launched in the last three quarters have set a new pricing level for the market with selling price from $7,500 to $12,000 per square metres.
CBRE expected that new launch supply would improve in the second half of the year. In total, new launch supply in 2019 is expected to reach 28,000 units.
In terms of segment, mid-end and affordable will continue to dominate while new launch from luxury and high-end will only account for small proportion.
The East will continue to be the market hot spot with new projects in District 2 and District 9. Inventory will be absorbed in next few quarters thanks to limited new launch supply.
Average selling price is expected to increase by 5 per cent compared to 2018, CBRE said.
Selling prices in mid-end and affordable segments will have modest growth rate from 1 per cent to 3 per cent year on year while high-end projects are expected to see selling prices higher 5 per cent year on year.