Dark - light color gamut in the Southern real estate market

The number of new products for sale has increased, but the supply-demand imbalance is still there. Meanwhile, resort real estate and land have not fully recovered, and projects with legal problems in Ho Chi Minh City have not been able to be successfully “rescued”…

The number of new products for sale has increased, but the supply-demand imbalance is still there. Meanwhile, resort real estate and land have not fully recovered, and projects with legal problems in Ho Chi Minh City have not been able to be successfully “rescued”…

In 2024, for the first time, the high-end housing segment will dominate the entire real estate market in Ho Chi Minh City.

Bright colorful market

The Southern real estate market has had many bright colors in the past year, with dozens of projects opened for sale.

For example, in Ho Chi Minh City, according to the Ho Chi Minh City Real Estate Association, there are more than 10,000 products opened for sale by investors. Of which, the Eaton Park project in Thu Duc City of Gamuda Land Group has 2,000 luxury apartment products opened for sale from the beginning of 2024 until now.

In the South, Phu Long Real Estate Joint Stock Company recently launched the Essensia Sky Apartment Project in Nha Be District with 424 luxury apartments. Also in Nha Be, Khai Hoan Land Group launched and opened for sale the Khai Hoan Prime Project with 1,296 apartments...

In Binh Duong, there are more than 10 apartment projects for sale, with the number of apartments reaching more than 20,000 products. This is also the market with the fastest and most apartment project licensing and construction speed in the southern provinces. In 2024, in addition to apartments, land, townhouses, and villas will also have a fairly stable supply. Another bright spot of this market is that the selling price is assessed to meet the needs of customers, at 30 - 50 million VND/m2.

In 2024, for the first time, the high-end housing segment will dominate the entire real estate market in Ho Chi Minh City.

The Long An market is also starting to recover, after 2 years of no new projects opening for sale. In 2024, this market will have more than 5,000 townhouses, villas, and land plots for sale.

Another bright spot in the market is Ba Ria - Vung Tau, with the opening of 3,000 Condotel apartment products, after freezing in 2023. In addition, in the fourth quarter of 2024, the villa and resort townhouse segment here also showed signs of recovery with the appearance of new projects.

In Dong Nai, although there are no new projects opening for sale, the positive signal is that many large projects have had their legal problems resolved, such as Novaland Group's Aqua City project, Nam Long's project...

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said that after 2 years of being affected by the pandemic and financial difficulties, the market recovered quite well in 2024, with new projects being launched. In particular, in the Ho Chi Minh City market alone, real estate business in 11 months could reach VND250,000 billion, an increase of about 9% compared to the previous year.

“This data shows that the market recovery, although not strong, is steady, creating the premise for growth of over 10% in 2025,” said Mr. Chau.

Dark colors

The Southern real estate market in 2024 also has dark colors. Mr. Le Hoang Chau said that for the first time, the high-end housing segment dominates the entire real estate market in Ho Chi Minh City and currently, the market no longer has a supply of mid-range and affordable housing in commercial housing projects. This further distorts the housing product structure in the city's real estate market, failing to meet the real housing needs of the majority of middle-income and low-income urban people, and the market is developing unsustainably and unsafely.

Next, no new projects have been successfully “rescued” and put into construction for sale. The projects announced to be “rescued” in 2024 by Ho Chi Minh City are 8 projects, but these projects have only been rescued at the planning level.

Another dark color of the market is that the resort real estate segment has not recovered. Specifically, in 2024, the entire southern market will have only 3 new projects opened for sale, with about 1,000 products, but the consumption rate will only reach 20%, according to research data from DKRA Group. In addition, projects opened for sale many years ago are still "shelved" and cannot be rebuilt, leading to a gloomy scene of this market in 2024.

Mr. Vo Hong Thang, Deputy General Director of DKRA Group, said that the resort real estate market has not recovered in 2024 mainly because the finances of real estate businesses have not been able to recover. In addition, there is no market push from new projects, and customer confidence in this market is also gradually losing, so in 2025, this segment is still unknown and shows no signs of recovery.

Another dark color of the market is that the land segment in 2024 has been turned away by customers, no longer interested as in previous years. The number of new projects opened for sale can be counted on the fingers.

Another dark spot of the 2024 market pointed out by observers is that the market has not achieved the target of 1 million social housing units, when the entire Southern market in 2024 has only 2 projects (HCMC has 1 project and Binh Duong has 1 project). Policies to motivate businesses to develop this product line are not yet available and businesses wishing to develop social housing are also stuck in terms of capital.

“The biggest problem currently in implementing investment procedures for social housing projects is still the lack of coordination and pushing between departments, branches, districts, and counties, leading to very slow and time-consuming administrative procedures for social housing projects,” said Mr. Le Hoang Chau.

Source: https://baodautu.vn/batdongsan/gam-mau-toi---sang-tren-thi-truong-dia-oc-phia-nam-d240144.html