Dat Xanh Service Real Estate Research Institute (Dat Xanh Service) has just released a report on Vietnam's residential real estate market research in the third quarter of 2023.
Accordingly, the real estate market continued to be short of new supply in the first 9 months of the year, with the absorption rate falling sharply to an average of around 20%, meaning that for every 10 houses put on the market, 2 were "sold".
For every 10 houses put on the market, 2 are "sold". (Photo: Dai Viet)
Dat Xanh Service representative commented that the policies to remove difficulties for the real estate market have not yet shown clear effectiveness in promoting market recovery. The domestic and world economic situation has had an unfavorable impact on the real estate market. Market confidence has not been fully restored.
According to Dat Xanh Service, the "bright spot" of the market is that deposit interest rates have dropped to their lowest level since 2020, leading to interest rates on new loans also being adjusted down to the same level as early 2022.
Although the overall absorption rate of the whole market is still low compared to the same period in the years before the "crisis", the absorption rate in 2023 has gradually increased by quarter. And if the absorption rate growth momentum remains stable, the real estate market will gradually warm up in the coming period.
Dat Xanh Service's research shows that the southern real estate market, including Ho Chi Minh City and neighboring provinces, continues to lead in primary supply in the first 9 months of the year. Apartment supply in Ho Chi Minh City and Binh Duong accounts for 97.3% of the primary apartment basket and 65.7% of the region's general basket.
In Ho Chi Minh City, the market has no new low-rise projects. Supply from projects in the East accounts for about 60% of the product portfolio.
In the third quarter of 2023, Ho Chi Minh City recorded a new apartment supply of about 4,000 products, an increase of 74% year-on-year. The average selling price of apartments is from 60 - 80 million VND/m2, an increase of 2 - 3% year-on-year. Of which, the apartment absorption rate is about 22%.
The absorption rate based on primary supply in the entire Ho Chi Minh City area and neighboring provinces in the third quarter of 2023 is about 15 - 20%. In particular, the absorption rate in Ho Chi Minh City is higher than other neighboring provinces (estimated at an average of over 22%).
According to Dat Xanh Service, in satellite provinces of Ho Chi Minh City (Binh Duong, Dong Nai, Long An), the average selling price of apartments is from 27 - 43 million VND/m2, stable by quarter. The selling price of townhouses is from 25 - 91 million VND/m2, stable by quarter.
The average selling price of villas ranges from 60 to 130 million VND/m2, up 5 to 8% quarterly. The average selling price of shophouses ranges from 30 to 143 million VND/m2, stable quarterly. The average selling price of land ranges from 15 to 55 million VND/m2, stable quarterly.
Dr. Pham Anh Khoi, Director of Dat Xanh Service. (Photo: Dai Viet)
Dr. Pham Anh Khoi, Director of Dat Xanh Service, assessed that with the efforts of the Government, ministries and businesses, the real estate market is showing signs of being "less bad". In the coming time, the market will welcome new supply from projects that have been cleared of legal issues. Secondary supply will be more stable and diverse when more projects are added to be handed over.
“ Currently, lending interest rates have dropped to around 10% per year. I expect that in the fourth quarter of 2023, interest rates will be maintained, and investors and customers will receive more support in terms of credit limits for real estate loans. The fourth quarter of 2023 is expected to be the time when investors will untie the psychological knot and put money into suitable products,” said Mr. Khoi.
DAI VIET
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