Housing prices are high, many apartment projects in Ho Chi Minh City and Hanoi are preparing to launch products to "catch the wave"

After many years of being shelved, some apartment projects in Hanoi have been restarted and are preparing to launch - Photo: B.NGOC

The high price of apartments since 2014 has encouraged many investors to complete investment procedures and start construction projects early to catch the wave. Since the beginning of the year, a series of housing projects have been launched, started construction and are expected to be "released", helping to increase the supply of apartments in Hanoi and Ho Chi Minh City.

Apartment supply is increasing rapidly

General Department Store Joint Stock Company and Tan Hoang Minh Group have just started construction of the Greenera Southmark project at the southern gateway of Hanoi. The project is built on a 2.5-hectare land area, providing thousands of commercial apartments to the market in the near future.

Also in the first half of March this year, Xuan Cau Group started construction of the Alluvia City ecological garden super urban area in Van Giang town (Hung Yen province) with a land use area of ​​up to 200 hectares and a total construction investment of about 31,000 billion VND.

Similarly, MIK Group also started construction of the luxury apartment project The Continental - Imperia Signature Co Loa, located in Vinhomes Co Loa urban area, including three 45-storey apartment towers, providing about 2,184 luxury apartments with enough area for customers to choose from.

Previously, at the end of February 2025, in Van Giang district (Hung Yen province), Bach Giang Construction Investment Development Joint Stock Company (DCI) started construction of Centerville urban area with an area of ​​over 49.9 hectares. Of which, the residential land area is over 17.87 hectares, with three 39-storey apartment buildings and social housing, villas, and townhouses.

In the Southern region, investors are also actively launching projects and launching products to catch the market wave. At a dialogue with investors on February 28, Mr. Nguyen Van Dat, Chairman of the Board of Directors of Phat Dat Real Estate Development Joint Stock Company (PDR), commented that the real estate market in 2025 will gradually warm up thanks to support policies from the Government and rapidly improving credit policies.

"The Thuan An 1&2, Quy Nhon Iconic and Cadia Quy Nhon projects will be put into operation in the first half of 2025" - Mr. Dat informed and estimated that the revenue from six key projects from 2025 - 2027 will reach 40,000 - 50,000 billion VND, and revealed that he will continuously seek to expand land funds, participate in bidding and negotiate to buy more new projects.

In a recent report, Vietcap Securities also assessed that the restart of the two super projects GSW and Gem Riverside will boost sales of Dat Xanh Group Joint Stock Company (DXG) in the period of 2025 - 2026. As for Gem Riverside, after receiving a construction permit in September 2024, the group is preparing to start construction and aims to receive a sales license in the first half of this year.

In the first quarter of this year, Khang Dien House (KDH) plans to open for sale the Foresta project complex (Thu Duc City). In a recent update report, Junan Vietnam Securities said that The Foresta project has completed the construction of the shell, infrastructure and is preparing to open for sale the first 230 villas.

According to the analysis of the securities company's analysis team, these products are expected to have a high absorption rate (over 65%) when the low-rise real estate market in Ho Chi Minh City recovers. The project is also expected to contribute more than VND 9,000 billion in revenue to KDH in the period of 2025 - 2026.

Similarly, An Gia Real Estate (AGG) also launched The Gio Riverside project in the East of Saigon this March. With an area of ​​about 2.9 hectares, The Gio Riverside has a scale of two 40-storey towers, providing the market with 3,000 apartments.

High apartment prices for a long time are the driving force for many investors to start and launch new projects - Photo: NAM TRAN

House prices cool down but unlikely to fall sharply

Commenting on the housing price trend in the coming time, Mr. Dinh Minh Tuan, Southern region director of Batdongsan.com.vn, said that although the supply of apartments in Hanoi has increased sharply again, apartment prices will hardly decrease deeply. In 2024, apartment prices in Hanoi increased sharply, so in 2025, there will be almost no adjustment trend with new projects.

The reason is that the cost of developing new projects in the following years is still high and tends to increase. Therefore, investors will base on input costs to set selling prices, not on the trend of having to reduce prices after a year of strong price increases. For those who have a real need to buy a house, to buy to live in, they will consider whether their needs and the amount of money spent are appropriate before making a payment.

According to Mr. Tuan, for used apartment projects or projects that have increased rapidly in recent times, there will be a tendency to cool down, not increase anymore, and the selling price will tend to stay the same. For short-term investors, this is not a suitable time to invest. However, for those who want to buy a house to live in, they can consider buying a house on the secondary market because the market is tending to adjust to a more reasonable price.

"When housing supply increases, supply and demand will be less unbalanced, contributing to reducing housing pressure. When the supply in the market meets the demand for housing in both the high-end, affordable, and social housing segments, housing prices will decrease," said Mr. Tuan.

Meanwhile, according to Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association, the housing supply has increased, housing prices this year will tend to be more stable, there will no longer be a "virtual fever" like in 2024.

"But the increased supply is still not enough to meet demand, most of the new supply is in the high-priced segment, so housing prices have only been adjusted to a more suitable level, not reduced deeply. Projects launched on the market recently are scattered, not massive, the number of new apartments increased by tens of thousands in Hanoi recently is just like a drop in the ocean," said Mr. Dinh.

In addition to the supply of commercial apartments, many experts also forecast that the supply of social housing in Hanoi and Ho Chi Minh City will increase sharply in 2025 and the first half of 2026 when the Government is determined to promote the implementation of projects, and local authorities also make efforts to arrange land funds to build social housing.

According to Mr. Dinh, localities will have to implement the Government's direction on social housing development targets in 2025. However, from the time the project is approved, construction starts until the housing product is released, it takes 1-2 years. So at this time, the product still does not meet the demand for home buying, and there is still a difference between the segments.

Some real estate experts recommend that in the context of a stable market in 2025, those who need to buy real housing should consider putting down money to buy. "And when buying a house in a new project, buyers need to pay attention to the investor's capacity and the project's location," said this expert.

Too high a price will be a barrier

Ms. Vu Quynh Nhu, analyst at Guotai Junan Vietnam Securities, said that by 2025, cash flow from business operations of real estate investors will gradually improve due to the prospect of project sales.

In addition, the financial cash flow generated from the successful issuance of shares to raise capital and M&A project transfers in 2024 will help businesses partially resolve liquidity pressure related to debt maturity and bond maturity.

"The transparent legal framework creates favorable conditions for businesses to continue implementing unfinished projects and opening new projects. However, price barriers somewhat affect the real liquidity of the market when the price base is anchored at a high level. Therefore, we believe that in the short term, the recovery will be mild and there will be clear differentiation between businesses," Ms. Nhu commented.

Read more Back to Topics

Back to topic

BAO NGOC - BINH KHANH

Source: https://archive.vietnam.vn/gia-nha-o-muc-cao-nhieu-du-an-chung-cu-o-tp-hcm-ha-noi-chuan-bi-bung-hang-don-song/