Apartment projects keep pace with the Southern real estate market

While real estate prices in Ho Chi Minh City are considered too high, the market still has projects with mid-range prices to keep the market balanced.

Apartment projects keep pace with the Southern real estate market

While real estate prices in Ho Chi Minh City are considered too high, the market still has projects with mid-range prices to keep the market balanced.

High-priced projects are causing the market to go out of phase.

According to data recently released by the real estate technology platform Nha Tot, in recent years, the supply of apartments and condominiums in the affordable segment (under 3 billion VND) in the southern provinces has witnessed a sharp decline after continuous difficulties from the market. This has caused the contribution rate to the total supply to decrease from about 69% in October 2022 to 53% in October 2024. The mid-range and high-end segments (3 billion VND or more) have maintained a stable supply quantity and shown signs of a slight increase in the same period.

TT AVIO project was launched by TT Capital last November.

According to Ms. Tran Nguyen Hoang Uyen, Director of Nha Tot, from the beginning of 2024 to the end of the third quarter, the supply of primary products will mainly focus on the high-end segment.

Specifically, newly opened apartments are mainly in the high-end segment, beyond the affordability of the majority of buyers. Apartment prices in the secondary market are also showing a rapid increase of 15-30% in recent years. Meanwhile, people's incomes have an opposite trend, causing the gap between income and housing prices to widen.

Looking at the current market, there are quite a few projects being opened for sale in Ho Chi Minh City, however, these projects all have very high prices. For example, the King Crown Infinity project on Vo Van Ngan Street, Thu Duc City. The lowest price of this project is currently 110 million VND/m2 and the highest is 160 million VND/m2.

At the project named Eaton Park, invested by Gamuda Land Group on Mai Chi Tho Street, Thu Duc City, the current selling price offered by the investor is 4,800 USD/m2. Or like the Vinhomes Grand Park project on Nguyen Xien Street, Thu Duc City, the selling price is currently at 60 million VND/m2.

Another project being opened for sale by the investor is The Global City on Do Xuan Hop Street, Thu Duc City, with the selling price offered by the investor being around VND140 million/m2. In addition, a series of projects such as The OpusK apartment building in Thu Thiem have prices of over VND300 million/m2. Even projects far from the center of Ho Chi Minh City such as the Essensia Sky project in Nha Be District that has just been launched have prices of VND70 million/m2.

While the real estate market in the center of Ho Chi Minh City is a competition of high-priced projects, the Southern market still has projects developed by investors in the high-end product line but with mid-range prices. These are considered to be projects that keep the market pace, balancing market demand.

For example, recently, the Japanese joint venture Cosmos Initia (a member of Daiwa House Group), TT Capital, Koterasu Group has officially announced the TT AVIO project in Di An City , Binh Duong Province. The project has a scale of more than 2,000 apartments, with an area of ​​40-81 m2/apartment, with a starting price of 1.23 billion VND/apartment.

With this price, in the recent introduction of the TT AVIO project, the investor announced that it recorded nearly 350 successful transactions in the morning, affirming the attractiveness of the product in the affordable segment.

In addition, the Japanese joint venture has introduced a “payment negotiation” policy that allows buyers to be more flexible in their personal financial plans. Currently, most investors apply a fixed payment method through predetermined installments, making it difficult for buyers to change and sometimes causing financial pressure.

With this policy, TT AVIO allows buyers to adjust their financial plans in each stage of the contract. Through this, they can proactively plan their cash flow, choose the appropriate payment time at each stage, ensuring the completion of the total agreed amount for each year.

In the South, Khai Hoan Land Group launched a project called Khai Hoan Prime in Nha Be District, Ho Chi Minh City. The project is built on an area of ​​19,730 m2, with 3 towers including Vinci 27 floors high, Mika tower 25 floors high, Gali tower 27 floors high. The product portfolio has 1,296 apartments from 1-3 bedrooms. 65% of the apartments in the project have a river view. The selling price offered by this investor is only 45 million VND/m2.

Also in the South, a project called Conic Boulevard in Binh Chanh district has recently appeared, the project is priced at 37 million VND/m2. According to the representative of the project distribution unit, Eximrs Company, with a price of only 37 million VND/m2, customers only need to pay about 450 million VND, the rest will be supported by the bank with a loan, 0% interest rate for 18 months, and a principal grace period of 60 months.

According to Ms. Tran Nguyen Hoang Uyen, the fact that housing prices are too high and the gap between income and ability of buyers leads to a shortage of supply for real housing needs in Ho Chi Minh City. However, the fact that the market still has projects with good prices such as TT AVIO or Khoan Hoan Prime... is creating a certain balance to attract customers with real housing needs and middle-income finances to be able to buy a house.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that if real estate prices do not have appropriate supply and demand adjustments, the market will find it difficult to recover completely. In the long term, the story of increasing real estate prices, if not intervened early, will lead to many consequences for the market and society.

“The management agency needs to soon take measures to clear the way for the affordable commercial housing and social housing segments. Investors also need to step up research and product development in line with trends and affordability of the majority of people, limiting the situation of being completely out of sync with high-end and luxury products,” said Mr. Chau.

Source: https://baodautu.vn/batdongsan/nhung-du-an-chung-cu-giu-nhip-thi-truong-bat-dong-san-phia-nam-d231635.html