Binh Duong becomes a bright spot with many affordable apartment projects

Since the beginning of the second quarter, the market has shown the ability to recover from the demand in the affordable apartment segment that has not decreased, as many people have real demand to buy. However, at that time, in the Southern market, there were very few projects targeting this segment, leading to a serious shortage of supply.

According to the real estate market report of DKRA Group, in the second quarter, the supply in Ho Chi Minh City and surrounding provinces recorded a growth of up to 33% compared to the first quarter, but decreased by 87% compared to 2020. Accordingly, in the whole market, there were 15 projects opened for sale (4 new projects and 11 projects in the next phase), providing 1,826 units, the new consumption reached 1,179 units.

In particular, Binh Duong is a bright spot when most of the products in the affordable apartment segment are launched to the market, mainly concentrated in 3 cities: Thuan An, Di An and Thu Dau Mot. With the development of affordable apartment projects in the border area, Binh Duong's projects have helped reduce the burden of real housing demand in Ho Chi Minh City with this segment.

With many cheap apartment projects, Binh Duong is becoming a bright spot in the market. — An affordable apartment project in Di An (Binh Duong) is set to be handed over in July.

With the support of a synchronous and modern transportation system that has been and is being implemented such as: Ring Road 3, Ring Road 4, Ho Chi Minh City - Thu Dau Mot - Chon Thanh Expressway... the development potential and advantages of Binh Duong with affordable apartment projects are also assessed to be the key to leading the market in the coming time.

Meanwhile, in Ho Chi Minh City, the main supply is still in the high-end segment, accounting for 91% of the newly launched supply in the second quarter. These projects are concentrated in Thu Duc City and have recorded extremely low consumption capacity. For that reason, in recent times, primary selling prices have not fluctuated strongly, while secondary prices have continuously decreased, and liquidity is low.

According to DKRA data, in Ho Chi Minh City, the highest selling price of new projects is nearly 95 million VND/m2, the lowest selling price is 43.5 million VND/m2. In Binh Duong, the highest price is 49 million VND/m2, the lowest is 31.7 million VND/m2. New supply in the third quarter of 2023 in Ho Chi Minh City may increase, ranging from 1,200 - 1,500 units, Binh Duong about 500 - 800 units...

With many cheap apartment projects, Binh Duong is becoming a bright spot in the market. Image 2 — Meanwhile, in Ho Chi Minh City, most projects are in the high-end segment, so liquidity has not improved much.

According to experts, although the Government is stepping up efforts to unblock the real estate market, investor sentiment remains unstable after the 2022 decline. This has led to continued lack of cash flow into the market, especially in the high-end segment. Along with negative information related to the world's macro economy, in the short term, investors will continue to wait to "catch the bottom".

As for affordable apartments, due to the high demand for housing, this segment and social housing projects are considered the market’s savior at the end of the year, when the prices of the products are suitable for the needs and financial capacity of the buyers.

To create momentum for this recovery period, many opinions believe that, in addition to putting policies into practice, supporting low-interest loan packages is also an important factor supporting the recovery of the real estate market. In recent times, the State Bank has continuously reduced operating interest rates, but to continue to lower lending interest rates enough to attract investors back to the market is still a story of 2024.

Sharing this view, in its report assessing the real estate market situation in the first 6 months of the year, the Ministry of Construction also stated that the market continued to be sluggish. Although some commercial banks have reduced lending rates, market activities have not yet become active again.

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