A new launch project that is located in Thu Duc City (formerly District 9) Ho Chi Minh City, The 9 Stellars has the advantage of being in a rapidly-developing neighbourhood. Collection of bookings started for the apartments of The 9 Stellars started since January 2021 and the apartments were launched for Phase 1 sales in October 2021.

The 9 Stellars is prominently located adjacent to HCMC’s New Eastern Bus Station and withing walking distance to the last train station on the Metro Line 1. Also, accessible from the Hanoi Highway, the project is developed as a transit-oriented development (TOD) both internally and externally. Designed to provide a range of lifestyle amenities, The 9 Stellars will be developed together with an international school and shopping centre on its premises. Additionally, the project will be embedded with smart city technologies that will be applied to the daily lives of residents. 

In this article, we break down the project developer’s price list for The 9 Stellars to understand how the developer think. As well as, look at the result from the project’s phase 1 sales launch of its apartments, to determine current market sentiments and buyers’ mentality.

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▸ General overview of The 9 Stellars apartments

With a land area of 16.5 hectares, The 9 Stellars has a project scale of more than 6,000 apartment units spread over approximately 14 apartment towers. It is developed by the developer SonKim Land. The first released apartment tower at The 9 Stellars consists of 192 typical apartment units, with other products such as penthouses and shophouses. The typical apartments will be handed over to buyers in a partially finished condition. Notably missing out are air-conditioners. 

▸ Floorplans and unit layouts of The 9 Stellars apartments

The first building complex being sold is designed to be 21 floors high with 2 basement levels. Each typical level from the 5th Floor to the 20th Floor consists of 12 apartment units each. There are two main views from the apartments at The 9 Stellars one facing a lake/golf course and the other viewing the rest of the project.

All the 3-bedroom apartment units’ number 06, 08 and 09 are corner units with two views each. All have a part view of the lake. The 2-bedroom apartment units can be differentiated into normal units and corners units with two views. Apartment units’ number 02, 03 and 12 are the corner 2-bedroom units, while units’ number 3A, 10 and 11 are the norm 2-bedroom apartments. As for the 1-bedroom units, they are actually more of a 1-bedroom +1. An additional room can be partitioned out from the living room area. The 1-bedroom apartment units’ are numbers 01, 05 and 07. In total of the 12 apartments on each floor, there are three 1-bedroom units, six 2-bedroom units and three 3-bedroom units.

▸ The 9 Stellars apartment prices

In the first sales phase of The 9 Stellars apartments, the developer’s list price was on average USD 3,190 per square meter (psm) on its nett floor area (NFA) inclusive of Value Added Taxes (VAT) and before any discount. The minimum to maximum price range (inclusive of VAT) for each unit stack with its NFA are broken down as follows:

  • Apartment unit 01 (46.99 square meters): USD 132,000 to USD 163,000
  • Apartment unit 02 (69.73 square meters): USD 207,000 to USD 254,000
  • Apartment unit 03 (70.48 square meters): USD 203,000 to USD 250,000
  • Apartment unit 3A (65.56 square meters): USD 178,000 to USD 222,000
  • Apartment unit 05 (52.01 square meters): USD 141,000 to USD 175,000
  • Apartment unit 06 (91.06 square meters): USD 310,000 to USD 370,000
  • Apartment unit 07 (59.84 square meters): USD 165,000 to USD 204,000
  • Apartment unit 08 (92.11 square meters): USD 317,000 to USD 378,000
  • Apartment unit 09 (91.3 square meters): USD 328,000 to USD 388,000
  • Apartment unit 10 (67.83 square meters): USD 194,000 to USD 239,000
  • Apartment unit 11 (69.87 square meters): USD 192,000 to USD 238,000
  • Apartment unit 12 (73.37 square meters): USD 211,000 to USD 260,000

By listing out average price per square meter for each unit stacks, we can identify the rationale behind the developer’s pricing strategy. The average price psm including VAT on the NFA for each apartment unit stacks are as follows:

  • Apartment unit 01: USD 3,044 psm
  • Apartment unit 02: USD 3,214 psm
  • Apartment unit 03: USD 3,115 psm
  • Apartment unit 3A: USD 2,948 psm
  • Apartment unit 05: USD 2,942 psm
  • Apartment unit 06: USD 3,611 psm
  • Apartment unit 07: USD 2,977 psm
  • Apartment unit 08: USD 3,761 psm
  • Apartment unit 09: USD 3,793 psm
  • Apartment unit 10: USD 3,066 psm
  • Apartment unit 11: USD 2,963 psm
  • Apartment unit 12: USD 3,104 psm

The developer has priced the corner units to be more expensive than the rest. Units with lakeview were the most expensive. On the contrary, units that face the rest of the project and the public road were priced the cheapest among the apartments. Also, it is interesting to note that the developer did not apply a foreigner premium. Therefore, foreign and local buyers of The 9 Stellars are entitled to the same pricing.

▸ The 9 Stellars apartments price analysis

With an average price of USD 3,190 psm, The 9 Stellars apartments are priced higher versus Masteri Centre Point at launch. The project achieved a selling price that is about 14.7% higher compared to to Masteri Centre Point phase 1 sales at the end of 2020, which was launched at an average of about USD 2,780 psm on the NFA and inclusive of VAT. Generally, this was due to the 3-bedroom lakeview units having a much higher per square meter price that pulled the project price average up. If not for these units, The 9 Stellars with have a similar price psm compared with Masteri Centre Point.

Looking at the developer’s pricing, The 9 Stellars first launch apartments have 3 distinct price brackets. 3-bedroom corner apartment units with lakeview with an average price of USD 3,722 psm, 2-bedroom corner units averaging USD 3,144 psm and the single view units averaging USD 2,990 psm. If you take the average price psm for the 3-bedroom apartment Units’ Number 06, 08 and 09, and compared it to units with other views, a huge 22% premium can be seen. 

Apart from the 3-bedroom apartment units, the 2-bedroom corner units were also more expensive compare to the 2-bedroom units with a single view. The 2-bedroom corner apartment Units’ Numbers 02, 03 and 12 averaged 5% more expensive to the other 2-bedroom apartment Units’ 3A, 10 and 11.

From the 5th floor up to the 20th floor there is a 22% price difference. This gives an average price increase of 1.5% per floor level, which works out to be USD 46 psm premium for each floor. Assuming apartment unit 10 (2-bedroom) with a NFA of 67.83 square meters, the absolute price quantum increase per floor will be USD 3,120. 

▸ Phase 1 apartment sales outlook for The 9 Stellars

With approximately 709 bookings for slightly over 9 months, a total of 181 apartment units were released by the developer in sales phase 1. In the online sales event on October, all released stock was a 100% sold out. Of the 181 units released, it is estimated that foreign buyers purchased over 30% (up to possibly 50%), with the rest made by local buyers. This statistic reflects a different trend from previous premium apartment projects in District 9 such as Masteri Centre Point and Vinhomes Grand Park, illustrating the strong appeal of the first metro line in HCMC to foreigners.

If you participated in the previous online sales event of The 9 Stellars apartments, you will notice a clear pattern in how majority of buyers’ selected your units. The smallest 1-bedroom apartment Unit 01 was the fastest to sell out followed by the 2-bedroom apartment Units’ 10 and 11 with lake/golf views. This was followed closely by the most expensive unit psm, the 3-bedroom Unit Number 09, that has the best views. The second choice after 2-bedroom Units 10 and 11 was the 2-bedroom corner Unit Number 12.

The reasoning why Unit 3A sales was slower while Units 10 and 11 were preferred was due to their price difference. Despite Units 10 and 11 having a much more desirable view compared to Unit 3A, their price psm premium average over Unit 3A was only 4% and 0.5% respectively. It was clear that with the developer’s pricing strategy, most buyers easily decided that units with lake/golf view was the priority.

Contrastingly, 2-bedroom apartment corner Units’ Numbers 02 and 03 were much less of a priority due to their higher average psm price over Unit 11. that were facing to the public road and the rest of the project was a clear second choice for most buyers. Apartment units with the least priority were the large 1-bedroom apartment Unit Number 07, 2-bedroom Unit Number 3A and the higher priced 3-bedroom Units 06 and 08.

What we think is that the floor area of 1-bedroom Unit 07 is much bigger to the other 1-bedroom units and is big enough to be a 2-bedroom in some other projects. Also, somewhat because the price difference of Unit 3A is not significantly cheaper it became less of a priority. The same can be said comparing the cheapest price psm 3-bedroom Unit 06 and most expensive 3-bedroom Unit 09, which was only 5% more expensive with a far better view. 

▸ Final note regarding pricing and sales of The 9 Stellars apartments

At the end of the day, a 100% sell-out rate is proof that apartment projects within walking distance to the metro station and is developed together with lifestyle amenities on the project has strong investment demand. This despite being located far away from the HCMC’s central business district in terms of distance. It is also evident that the increasing prices of apartments in District 9 Ho Chi Minh City (currently Thu Duc City), is still generally accepted by the property buyers. 

Disclaimer:

This article is intended to be an informational resource to provide knowledge in guiding real estate investors, home owners, property buyers and sellers to have an overview on how Ho Chi Minh City’s apartment market is currently and what awaits in the future. All facts and figures included in this article are based on our research and interpretation. For more in-depth analysis and opinion on Ho Chi Minh City’s housing market, please speak to any of our real estate agents.