Binh Duong will lead the supply of affordable housing segment

In the market report of Ho Chi Minh City and neighboring provinces in the second quarter of 2024 by DKRA, it shows that there are 15 projects opening for sale in the whole market, providing more than 1,800 apartments, consuming nearly 1,200 units. The affordable segment increased significantly in the quarter, accounting for 39% of the market supply and mainly concentrated in Binh Duong. Meanwhile, in Ho Chi Minh City, 91% of new supply is in the high-end segment, with no affordable products.

According to forecasts, the supply of apartments in the southern region will soon recover with about 3,000 apartments. Of which, Binh Duong and Ho Chi Minh City are still the key markets providing new products to the market. Binh Duong is also the market leading the supply of affordable apartments in the southern real estate market.

Similarly, Savills' report also pointed out that Dong Nai and Binh Duong will be the key markets in the affordable apartment segment, when they can bring to the market about 24,000 apartments in the period of 2024-2026. This will be the market that shares the "burden" of demand for Ho Chi Minh City when this market is considered to have difficulty in having new supply with prices under 3 billion VND/apartment.

Thanks to its large land fund, Binh Duong will "dominate" the low-cost housing market in the next few years.

The reason why Binh Duong is gradually becoming the "locomotive" leading the low-cost housing market comes from the advantage of large land fund, low project implementation costs, and open legal corridor. Thanks to that, Binh Duong is becoming the focus of attracting FDI capital and large M&A deals.

In fact, in the first half of 2024, Binh Duong received many capital investment deals from investors in Japan, Singapore, Malaysia... and most of them focused on affordable housing projects. For example, TT Capital Investment Joint Stock Company has cooperated with two partners from Japan, Cosmos Initia (member of Daiwa House Group) and Koterasu to develop affordable housing products in Binh Duong and neighboring provinces.

This joint venture announced that it will invest about 150 million USD in the next 5 years, aiming to bring thousands of low-cost apartments to the market each year. Currently, this joint venture has also completed capital contribution for a project near Di An City (Binh Duong) with a scale of nearly 2,000 apartments, selling price under 2 billion VND each.

Also in this area, Asset Limited from Thailand will cooperate with Bcons to implement 11 housing projects with a total of nearly 9,000 apartments in the affordable segment. Previously, this investor also announced a plan to deploy 2,000 social housing units in 2025 in Di An City.

In addition to the above factors, the potential demand of the Binh Duong market is also the reason why investors like it. Not only receiving a large number of customers from Ho Chi Minh City, cheap products in Binh Duong also meet the needs of customers working in 29 industrial parks and 12 industrial clusters in the province.

In particular, according to population data, Binh Duong's population increases by more than 100,000 people each year, making it the locality with the highest mechanical population growth rate and per capita income in the country. In 2024, the recruitment demand of businesses in Binh Duong will be from 60,000 to 80,000 workers. Thanks to this abundant demand, Binh Duong has become a fertile market that can be exploited sustainably if it develops according to market needs.

Source: https://www.congluan.vn/binh-duong-se-dan-dat-nguon-cung-phan-khuc-nha-o-vua-tui-tien-trong-giai-doan-toi-post305986.html