Affordable, well-received apartments

The recent increase in apartment transactions in Can Tho City reflects the demand for housing suitable to the income of local residents.

Limited supply

As the largest urban area in the Mekong Delta, the focal point for transportation, trade, services, healthcare, education and training in the region, the real estate market in Can Tho City is quite developed. There are currently about 70 projects being implemented in the field of housing development in the city.

Along with the general situation of the whole country, the Can Tho real estate market in 2023 faces many difficulties, the number of real estate transactions has decreased sharply. According to the information announcement of the fourth quarter and the whole year of 2023 on housing and the real estate market of the People's Committee of Can Tho City, in the whole year of 2023, in Can Tho City, real estate transactions on land plots were 4,688 plots; individual houses were 2,148 units; transactions on apartments were 1,302 units. Compared to 2022, the total number of real estate transactions in 2023 decreased by 33.2%.

The supply of new products to the market is also very limited. In 2023, in Can Tho City, there are only 5 projects eligible to sell future housing, including 3 commercial housing projects and 2 social housing apartment projects, with a very small number of products.

Entering early 2024, the scarcity of new real estate products continues to occur. By the end of the first quarter, in Can Tho City, there was only one more project eligible to sell future housing. That is the Diamond Green Apartment Complex - Cara River Park project in Lot 49 Residential Area - Nam Can Tho Urban Area, Hung Thanh Ward, Cai Rang District, invested by Dat Xanh Mien Tay Service and Investment Joint Stock Company, with 338 apartments and 20 commercial service apartments eligible for future real estate put into business.

Besides, there is only 1 project eligible to mobilize capital, which is commercial housing at the Nhip Dieu Xanh Apartment Project (lot DH6 on land plot No. 1715, map sheet No. 7), Nguyen Van Quang Street, Road No. 5, Nam Long Residential Area, Hung Thanh Ward, Cai Rang District, invested by Nhip Dieu Xanh Architecture Joint Stock Company.

Because in the residential real estate segment (especially for real estate for real estate needs), supply is limited due to legal problems and financial resources of businesses are facing difficulties, so transactions are mainly buying and selling real estate in old projects that were formed many years ago.

Speaking to Dau Tu newspaper, Mr. Le Phuong Dong, Head of the Representative Office of the Vietnam Real Estate Brokers Association in the Mekong Delta region, said that due to the scarcity of new products, the most traded segment is currently houses and land in urban upgrading alleys, in existing residential areas with completed infrastructure in the central district of Ninh Kieu. This product line is currently priced at around 2 billion VND/house with an area of about 60 m2.

A house with an area of over 88 square meters located in a car alley on 3/2 Street, Ninh Kieu District, Can Tho City is being offered for sale at a price of over 2.6 billion VND.

In this segment, according to Mr. Le Phuong Dong, if in the first two months of 2024, the market was still quiet, then in the last days of March this year, the transaction situation showed positive signs. According to the representative office of the Vietnam Real Estate Brokers Association in the Mekong Delta region, on average, there were about 200 real estate transactions per day through Notary Offices in the area (compared to only about 50 transactions/day before).

The reason for this increase, according to Mr. Dong, is that the real estate market has faced many difficulties in the past, and buyers have been waiting for real estate prices to drop to catch the bottom of the market. However, recently, the real estate market has shown signs of recovery, real estate prices are starting to increase, and people with real needs have decided to spend money to buy because they are afraid that prices will continue to increase in the near future.

Affordable apartment

Also according to the information announcement of the fourth quarter and the whole year of 2023 on housing and real estate market of Can Tho City People's Committee, the number of apartment transactions in the city in 2023 increased compared to 2022 (1,302 apartments in 2023 compared to 1,196 apartments in 2022). The majority of apartment buyers are civil servants, public employees, workers and students from the provinces in the region who are working and studying at training institutions in Can Tho City, because the selling price in this segment is relatively "soft", suitable for the "wallet" of buyers.

According to the Can Tho Real Estate Association, the supply of primary projects in the city will continue to be scarce in 2024. The main supply in the center of Can Tho City will be the apartment segment, including social housing apartments and commercial apartments.

Due to the relatively “soft” selling price, apartment transactions in Can Tho have increased recently. In the photo is the perspective of the Diamond Green Apartment Complex project - Cara River Park

Mr. Duong Quoc Thuy, General Director of Dat Xanh Mien Tay Service and Investment Joint Stock Company, said that at the Diamond Green Apartment Complex - Cara River Park project, phase 1 of block A has so far sold out 90% of the basket of goods out of a total of 179 products. With 1-bedroom apartments (PN 36-37m2), 2-bedroom apartments (50-53-70-75 m2), 3-bedroom apartments (85-86m2) with an average selling price of 40 million VND/m2 (excluding VAT). Of which, customers who buy are people in Can Tho accounting for 50%, Hau Giang, Soc Trang, Bac Lieu, Ca Mau, Vinh Long, Kien Giang provinces accounting for 30% (mainly buying for their children to go to school later, buying as vacation property in Can Tho), Hanoi, Ho Chi Minh City accounting for 15%, the rest are from other places accounting for 5%.

Mr. Thuy also added that on April 13, 2024, the Company will officially announce the new block Cara Luxury (Block B) with 179 products.

In the social housing segment, Nam Long Investment Joint Stock Company, Can Tho Branch, has just announced information about the Nam Long 2 Social Housing Apartment project, lots G2, H3, at the Nam Long 2 Residential Area project (lot 9A), Nam Can Tho New Urban Area (Hung Thanh Ward, Cai Rang District), invested by the Company.

The project has a construction land area of 38,260.69 m2, a total floor area of 116,256.7 m2, 1,601 apartments, and a total investment of 1,253 billion VND. Of which, 919 apartments in Nam Long 2 Social Housing Apartment, lots G2, H3 are future real estate projects that are eligible for business. The project is currently in the process of completing apartments in areas G2, H3.

According to the announcement of the project investor, the selling price (excluding VAT and maintenance fee as prescribed) for commercial apartments is from 18 - 22 million VND/m2; social housing apartments are 15.8 million VND/m2; rental price is 70,000 VND/m2/month.

Can Tho City Real Estate Association forecasts that in 2024, primary selling prices will tend to increase, especially the apartment segment will increase by 5-10%; the apartment segment will become a new residential and investment trend, which is positively received; secondary selling prices will remain stable and tend to increase slightly. In particular, the land segment will continue to be scarce and will increase sharply in 2024 because the regulation that land plots cannot be divided into plots and sold in special urban areas, I, II, III will take effect from January 1, 2025.

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