Apartment prices in the South are heating up

The Southern real estate market is witnessing contrasting phenomena between segments. While land and resort real estate prices are decreasing, apartment prices are starting to increase by 20-30% compared to the beginning of the year.

According to the latest report from the real estate market research department of DKRA Group, in the third quarter of 2024, the southern apartment segment had 108 projects opened for sale with 13,408 apartments. The number of apartments sold was 2,671.

Ho Chi Minh City market accounted for 57.1% of the number of products offered, followed by Binh Duong with 38.1%. According to statistics from DKRA Group, the primary supply of the whole market decreased by 9% compared to the previous quarter and decreased by 17% compared to the same period in 2023.

A special feature of the market is that demand has clearly recovered in September, but in the third quarter, consumption still recorded a decrease of 20% compared to the previous quarter and 39% compared to the same period in 2023, largely due to the lack of new projects opening for sale as well as the psychological impact of waiting from buyers.

Transactions are concentrated in mid-range projects with prices ranging from 40 to 55 million VND/m2 in Ho Chi Minh City and 30 to 35 million VND/m2 in Binh Duong, mostly in projects with completed legal procedures and fast construction progress.

A notable point of the market is that new locations have appeared such as Long An and Ba Ria - Vung Tau, where for many months no apartment products have been opened for sale.

According to CBRE Vietnam, in the third quarter, 2,000 unsold apartments in Ho Chi Minh City were sold.

In addition to the increasingly positive absorption rate of inventory, the resumption of projects is also a good signal for the market. At the end of the third quarter, projects that were previously entangled in legal issues such as Gem Riverside (Thu Duc City), The Forest Gem (Binh Thuan) are preparing to re-launch. Projects that have been re-launched this quarter such as D-Homme (District 6), D-Aqua (District 8) and Lavida Plus (District 7) have all adjusted their primary selling prices to increase by 10-30% compared to the previous period.

In the last 3 months of the year, CBRE predicts that there will be about 3,000 new apartments for sale. Compared to previous years, the apartment market in Ho Chi Minh City is expected to decrease in supply because most large-scale products have chosen to postpone their opening date to 2025. Some projects that plan to relaunch their products after legal issues are resolved are also expected to officially open for sale next year.

Surveying the real estate market in the South, we found that many projects are preparing to be handed over or projects that have been handed over before have seen prices increase sharply from 20 to 30% compared to the initial opening phase.

For example, Phu Dong Sky Garden apartment building in Di An City (Binh Duong), invested by Phu Dong Group, is in the process of completion and acceptance for handover to customers in December 2024. Currently, the price of this project is 20% higher than at the beginning of 2024. Secondary transactions have also increased sharply because the project is in the handover phase, so it has attracted more attention and purchases from customers.

Ms. Nguyen Thi Thanh Thao, Sales Director of Phu Dong Group, said that the price increase phenomenon appeared from the middle of the third quarter, mainly concentrated in projects that have been handed over and are about to be handed over (an increase of 4 - 8 million VND/m2 compared to projects under construction or newly opened for sale).

At the Him Lam Phu An project (Thu Duc City), in early 2024, the transaction price was about 2.4 - 2.5 billion VND/2-bedroom apartment, but has now increased to 2.7 - 3 billion VND/apartment.

According to DKRA Group, the lowest apartment price in Ho Chi Minh City is 30 million VND/m2, the highest is 493 million VND/m2. In Binh Duong, the price is 26 million VND/m2 for social housing projects and the highest is 60 million VND/m2 for commercial houses. In Ba Ria - Vung Tau, the price is 35 - 51 million VND/m2. Dong Nai is 31 - 41 million VND/m2...

According to Ms. Pham Ngoc Thien Thanh, Deputy Director of CBRE Research and Consulting, apartment prices are unlikely to decrease. Even old projects that are about to reopen for sale are offering new prices that are up to 30% higher than 2-5 years ago. In the past, investors spent a lot of time and resources to restart projects, and even after the projects were cleared, they were different in many ways from before, so they wanted to set a higher price level.

Similarly, Mr. Vo Hong Thang, Director of the real estate market research department of DKRA Group, forecasted that new supply will increase compared to the third quarter, fluctuating between 4,000 - 6,000 units, mainly concentrated in Ho Chi Minh City and Binh Duong.

“The Grade A apartment segment continues to hold the dominant position in Ho Chi Minh City while the Grade B and C segments lead the new supply in neighboring provincial markets. Liquidity and prices in the secondary market are expected to continue to have positive changes due to the high demand for home purchases at the end of the year,” Mr. Thang commented.

Source: https://baodautu.vn/batdongsan/gia-chung-cu-khu-vuc-phia-nam-dang-nong-dan-d227692.html