Southern real estate market is unlikely to heat up even when legal obstacles are removed

In recent times, the Southern real estate market has continuously received good news related to many projects being cleared of legal obstacles and restarted. However, the market is forecasted not to experience a fever.

In recent times, the Southern real estate market has continuously received good news related to many projects being cleared of legal obstacles and restarted. However, the market is forecasted not to experience a fever.

By the end of 2024, Ho Chi Minh City had resolved 34 out of 64 projects facing legal difficulties. Some typical projects that have been completely resolved include the Song Viet Complex, invested by Quoc Loc Phat Joint Stock Company. This project has completely resolved legal problems, creating favorable conditions for implementation.

Or Metro Star Project of Metro Star Investment Joint Stock Company, with a scale of 1,468 apartments and 76 shophouses. After many years of waiting, the People's Committee of Thu Duc City has approved the decision to approve the investment policy and the investor.

The social housing area of VTHouse Joint Stock Company and Tan Giao Joint Stock Company also had legal problems resolved, contributing to increasing the supply of social housing for the City.

Furthermore, the project of Suntory Pepsico Vietnam Beverage Company Limited has resolved legal issues, creating favorable conditions for the business activities of the enterprise. The Song Da - Thang Long high-rise residential area (District 7) invested by Hung Thinh Incons Joint Stock Company has also had its obstacles resolved, allowing it to continue its implementation...

In addition, Ho Chi Minh City is continuing to review and resolve problems for 30 other projects, in order to speed up construction progress and meet people's housing needs.

In fact, many investors, after having their legal problems resolved, quickly restarted their projects or reopened sales, with prices significantly higher than before.

For example, Dien Phuc Thanh Company plans to launch more than 350 apartments at the MT Eastmark City Project. After many sales, the price of apartments here has increased from 34-36 million VND/m2 to 45-46 million VND/m2. In the upcoming sales, the expected price will fluctuate around 50 million VND/m2.

In Thu Duc City, Dat Xanh Group is re-implementing the Datxanh Homes Riverside Project (formerly Gem Riverside). When launched in 2018, the project was offered for sale at around VND33 million/m2, but was later suspended due to legal issues. Currently, although the official price has not been announced, there is information on the market that the price could be up to VND100 million/m2, three times higher than the initial announcement.

Another project that has attracted attention is Metro Star, which was first launched in 2018 at a price of about VND38-40 million/m2, but had to stop due to legal problems. Currently, the selling price of apartments in this project is predicted by investors to be about VND70 million/m2, an increase of nearly 75% compared to the original, while the price of shophouses ranges from VND120-130 million/m2.

According to a report by CBRE Vietnam, the average primary selling price of apartments in Ho Chi Minh City is currently around VND76 million/m2 (excluding VAT and maintenance fees), up nearly 24% year-on-year. In the secondary market, apartment prices in Ho Chi Minh City continue to increase slightly, with an average increase of 1% quarter-on-quarter and 7% year-on-year.

Ms. Duong Thuy Dung, CEO of CBRE Vietnam, said that this selling price is far beyond the affordability of most people. This will not only happen this year, but in the next one to two years, housing prices will continue to increase when the new land price list is applied. Therefore, the market is unlikely to be hot after many projects are cleared.

Sharing the same view, Ms. Tran Thu Huong - a real estate investor with many years of analysis experience, the real estate market often becomes hot when all favorable factors converge, stimulating the demand for buying, selling and investing to increase sharply.

For example, only when the economy grows strongly, people's income improves, excess cash flows tend to flow into real estate as a safe haven. Businesses thrive, the need to expand offices, industrial parks, and warehouses also pushes up land prices. Or when there are credit support policies, stimulus packages, and housing support from the State; traffic infrastructure develops; a strong wave of investment appears... However, the real estate market in the current period has gone through many ups and downs and changes, from quantity to quality, from infancy to maturity and increasingly more stable, so it is unlikely that there will be fevers.

Source: https://baodautu.vn/batdongsan/thi-truong-bat-dong-san-phia-nam-kho-sot-ngay-ca-khi-duoc-go-vuong-phap-ly-d245494.html