In the report "Overview of Vietnam's Real Estate Market - Looking back at 2023 and Forecast for 2024 - Opportunities for whom?" just published, Dat Xanh Services Institute of Economics - Finance - Real Estate Research (DXS-FERI) stated that affordable housing projects are always welcomed by the market at any stage. And 2024 promises more opportunities for the housing segment under 2.5 billion VND/unit due to low input costs, fast implementation speed and diverse target audiences.
In particular, mini apartments are receiving great attention from investors and the State is also building a separate legal framework for this type. "The demand for this type of housing is very large in urban areas, especially from Gen Z, singles and single-generation families" - Dr. Pham Anh Khoi, Director of DXS-FERI, emphasized.
An apartment project in Ho Chi Minh City. Photo: Tan Thanh
Real estate businesses that want to seize these opportunities need to restructure comprehensively and build a new sustainable development strategy. Businesses must restructure their capital structure, bad debt, and be flexible in pricing to prioritize liquidity. In addition, businesses also need to prepare land funds, human resources, technology, etc. to seize opportunities in the new year.
Meanwhile, the 2023 Real Estate Market Report by DKRA Vietnam has just announced a forecast that the apartment supply in 2024 could increase by 12,000 - 15,000 units, mainly concentrated in Ho Chi Minh City with about 8,000 - 10,000 units. Although it is an attractive segment, it is still scarce with affordable apartments, while the Class A apartment segment maintains its dominant position in Ho Chi Minh City, while Class B and C apartments account for a large proportion in Binh Duong and neighboring provinces. The primary selling price level will not fluctuate much in 2024 or slightly increase due to the pressure of input costs.
Thus, compared to 2023, the apartment supply in 2024 may continue to be scarce. Specifically, DKRA Vietnam's report shows that in 2023, the whole country recorded 126 primary apartment projects for sale (about 22,071 units) in 2023, down 32% compared to 2022, considered the lowest level in the past 5 years. The supply for sale is mainly distributed in Ho Chi Minh City (concentrated in the East) and Binh Duong. The consumption volume reached about 9,664 units, equal to 44% of the primary supply and down 56% compared to 2022, concentrated in mid-range projects with prices from 40 - 55 million VND/m2, with completed legal procedures, rapid construction progress, and convenient connections to the city center.
The primary selling price level has not fluctuated much compared to the beginning of the year, however, investors have promoted the application of many policies of quick payment discounts, principal and interest grace periods, etc. to stimulate market demand. Meanwhile, secondary liquidity remains low, the secondary price level has decreased by about 3% - 8% compared to the end of 2022, mostly in projects that are in the process of completing legal procedures or are behind schedule in construction.
Source: https://nld.com.vn/nha-o-duoi-25-ti-dong-se-tao-suc-hut-nam-2024-196240107153556472.htm
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