Lack of new supply
According to Lao Dong , the demand for buying and selling houses in the Southern region is still increasing strongly, the selling price level is still high, but the number of transactions of apartments and some other segments of the real estate market in the Southern region is decreasing, mainly due to the lack of new supply.
Market research results from a number of real estate companies show that the real estate market in April 2024 could not maintain the "acceleration" of the previous March when there was a slight decrease in purchasing power in most segments.
According to batdongsan.com.vn, in the real estate market of Ho Chi Minh City, purchasing power also cooled down in most segments when the demand for buying houses decreased compared to the first quarter of 2024 with the two segments of apartments and villas having the sharpest decrease in the number of searches. Private houses and townhouses decreased by 1% and project land decreased by 2%.
A recent market report by CBRE Vietnam shows that in Ho Chi Minh City, the number of new apartments launched on the market in the first quarter of 2024 is about 500 units, of which 80 units are in the high-end segment.
The transaction volume of apartments and some other segments of the real estate market in the Southern region is decreasing. Illustrative photo
According to CBRE Vietnam, this is also the lowest number of apartments offered for sale in a quarter in the past 15 years in Ho Chi Minh City and only about 17% compared to the same period last year. In terms of liquidity, in the first quarter of 2024, the total number of apartments sold was more than 600 units, down 74% compared to the fourth quarter of 2023. The primary apartment price offered reached VND 61 million/m2, unchanged from the previous quarter and down 3% compared to the same period last year.
In terms of selling prices, in April, apartment prices in Ho Chi Minh City continued to have slight price fluctuations in the three categories of high-end, mid-range and affordable.
The decline in secondary apartment prices in Ho Chi Minh City has almost slowed down. The average price of apartments in Ho Chi Minh City is currently at least 51 million VND/m2 and at most 337 million VND/m2 according to market research by batdongsan.com.vn.
According to market research units, the slight decline in the real estate market in Ho Chi Minh City is largely due to the lack of trading products.
In the past month, the city had almost only 1 project with official supply for sale, which was phase 2 of the Akari City project, announced in April 2024.
Ho Chi Minh City's neighboring province, Binh Duong, had 6 new projects opened for sale in April, showing that the supply of apartments in Ho Chi Minh City is still extremely limited.
Since the beginning of the year, the city has also had a number of new projects that have begun to be launched, including two luxury projects in Thu Duc City and District 7 that have officially launched, but their product portfolio is modest and exploratory. The rest are still just a few products left over from old projects or the next phase of existing projects.
The main transactions of the villa and land segment in Ho Chi Minh City are almost entirely in the secondary market, due to investors reselling, with a serious lack of new projects.
This shortage of supply is expected to continue next month as most of the projects being implemented or being prepared to be implemented in Ho Chi Minh City still have no official sales plan for next month.
Overview of market developments in 2024, according to CBRE Vietnam, in Ho Chi Minh City, there will be more than 8,000 new apartments for sale. Thus, about 7,500 new apartments will be launched by investors in the remaining 6 months of 2024. Primary prices are expected to increase by 3% year-on-year.
However, Ms. Duong Thuy Dung - CEO of CBRE Vietnam said that only when the revised Land Law 2024 comes into effect along with the recovery of Vietnam's economy, will the real estate market in Vietnam in general and the Southern region in particular have a clear recovery.
The attraction of the suburbs
According to Stock Express News , entering 2024, the Southern real estate market has seen a clear change in both supply and transaction activities. Looking at the rate of goods sold on the market in recent months compared to the same period last year, it can be seen that homebuyers' confidence is gradually recovering. The amount of successful transactions is mainly in the mid-range segment, while the high-end segment is still quite quiet and records an increase in inventory value.
In this context, any business that has a strategy to restructure its products to meet real housing needs will solve the liquidity problem sooner. However, the supply of low-cost and mid-range housing in Ho Chi Minh City is becoming increasingly scarce, and those who want to buy a house to live in now and want to find a "soft" price product can only look to the neighboring areas. Grasping this psychology, many investors have flocked to the suburbs to develop projects to meet the increasing demand.
For example, in Long An, Sea Holdings is preparing to launch the Destino Centro project located on the frontage of National Highway 1A with more than 2,000 affordable apartment products, while also offering financial solutions to increase the number of "touch points" with customers. Not far away, Cat Tuong Group announced the Cat Tuong Phu An apartment project with a scale of 1,700 apartments with areas ranging from 38-80 m2.
Or in Binh Duong, CapitaLand organized the groundbreaking ceremony of The Orchard project located right in the center of Thu Dau Mot City. This is a component project of the Sycamore high-end apartment complex combined with trade and services with a scale of 3,500 apartments, total investment of 18,000 billion VND.
Meanwhile, Phu Dong Group has just announced the Phu Dong Sky One project in Di An City, with an expected construction period of 24-36 months and handover starting in December 2025, providing the market with 780 apartments with an area of 42-75 m2, with an average selling price of 30-32 million VND/m2 (excluding VAT).
In addition to these two projects, some neighboring projects also have prices under 50 million VND/m2, such as the Bons Polaris project of Bcons Group with prices from 37-41 million VND/m2; Phuc Dat Connect 2 project of Phuc Dat Group with prices from 40 million VND/m2; Picity Sky Park project with prices from 40-45 million VND/m2; T&T Capital's project with prices from 30-35 million VND/m2...
Ms. Giang Huynh, Deputy Director and Head of Market Research and S22M, Savills Vietnam said that currently, the Ho Chi Minh City market no longer has products under 2 billion VND and 90% of transactions are in the segment from 2-5 billion VND/unit.
According to Ms. Giang Huynh, apartment products in Binh Duong, Dong Nai, and Long An still maintain competitive prices compared to the Ho Chi Minh City market, thereby becoming an attractive destination for home buyers.
Dao Vu (T/h)
Source: https://www.nguoiduatin.vn/ly-do-suc-mua-cua-thi-truong-bat-dong-san-phia-nam-bat-ngo-giam-manh-a664563.html
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