Apartment market is bustling

It is forecasted that by the second half of 2025, the real estate market will witness strong growth.

After a long period of stagnation, the real estate market has begun to send out positive signals. From a series of newly launched projects to strong growth in liquidity, experts say this is a pivotal period for the recovery cycle of the entire industry.

Open for sale

In early November 2024, the Masteri Grand View project in The Global City (Thu Duc City, Ho Chi Minh City), developed by Masterise Homes, was officially launched in the context of a shortage of supply in the Ho Chi Minh City market. With a scale of 2 towers of 25 floors and 616 apartments, the project attracted more than 5,000 real estate experts to participate in the launch event. Although the selling price has not been officially announced, according to brokers, it will not be less than 100 million VND/m².

An apartment project of Nam Long just opened for sale in Can Tho City on November 17 attracted a lot of attention.

In October, many other luxury apartment projects also attracted attention thanks to their location and amenities. For example, Lavida+ in Phu My Hung, District 7, Ho Chi Minh City, by Quoc Cuong Gia Lai Joint Stock Company, opened for sale almost all of its remaining apartments at an attractive price of VND50 million/m² - lower than neighboring projects.

In the mid-range and affordable segments, projects such as Conic Boulevard (Binh Chanh District, Ho Chi Minh City) have attracted the attention of the market thanks to reasonable prices (VND 2.3-2.4 billion/2-bedroom apartment) and the ability to move in immediately. Meanwhile, the recently announced TT AVIO project in Binh Duong has attracted attention due to its price of only VND 1.23 billion/1-bedroom apartment, 20%-50% lower than other projects in the area and built according to Japanese apartment standards.

Ms. Tran Thi Khanh Linh, Deputy Director of Savills Investment Consulting Department, commented: "High-end projects with central locations or integrated utilities are having strong appeal, especially when the market begins to recover and buyers are more interested in long-term value."

Mr. Nguyen Van Tung, General Director of Danh Khoi Real Estate Services JSC (DKRS), said: "Projects that meet real needs and have affordable prices will have higher liquidity. Because buyers are now increasingly cautious, prioritizing clear legality and guaranteed construction progress."

According to a report by DKRA Group, the Ho Chi Minh City apartment market in October 2024 recorded many bright spots with a slight increase in primary supply. Newly launched apartment prices ranged from about VND 30 million/m² to VND 493 million/m², reflecting the pressure from input costs that remained very high. Market demand continued to recover positively, with the apartment consumption rate in the month increasing by 93% over the same period last year. In particular, some projects in provinces bordering Ho Chi Minh City recorded a price increase of 3% -8% compared to previous launches, showing a shift in demand from the center to neighboring areas.

In addition, the liquidity of the secondary market also continues to recover, focusing on projects that have red books or are in the process of preparing for handover. With many investors planning to launch new products in the near future, the supply of primary apartments is expected to have a clear change, especially in the second half of November 2024.

The market will be very exciting.

Dat Xanh Services Economic - Financial - Real Estate Research Institute (FERI) forecasts that in the last months of the year, the real estate market will welcome about 11,000 new products, an increase of 30% compared to the previous quarter. The apartment segment continues to lead with more than 9,300 products, accounting for 80% of new supply. In particular, the Southern region is expected to grow strongly with nearly 6,500 products - 2.5 times higher than the third quarter.

The average absorption rate is expected to reach 35%-40%, with primary prices increasing by 5%-10%. In key markets such as Ho Chi Minh City and Hanoi, the increase could reach 10%-20%, mainly in the apartment segment. "The Vietnamese real estate market is shifting from a "defense" to an "offensive" phase. Although there are still many challenges such as high input costs and slow legal progress, experts agree that this is a good time to prepare for a new growth cycle," said an expert from this institute.

According to Ms. Tran Thi Khanh Linh, the fact that the laws related to the real estate market will simultaneously take effect from August 2024 is considered an important turning point, creating confidence for investors. "A stable and transparent legal environment will help shorten project approval time, increasing attractiveness for investors. This is the premise for the market to flourish in the coming period" - Ms. Linh commented.

Deputy General Director of DKRA Group, Mr. Pham Hong Thang, commented that the real estate market in Ho Chi Minh City and neighboring provinces such as Binh Duong and Dong Nai is showing many positive signs, especially in the context of limited supply.

Mr. Thang predicted that with a series of new projects expected to open for sale at the end of November, the supply of apartments will have more obvious changes. In particular, Binh Duong is currently the leading province in implementing new projects, thanks to favorable legal conditions and available land funds, helping the market become more vibrant.

According to Mr. Thang, most investors are applying preferential policies to stimulate demand, including interest rate support, bank loan grace periods and other promotional programs. These policies not only increase liquidity but also create more attraction for the market.

It is forecasted that by the second half of 2025, with increasingly open legal policies and new laws coming into effect, the real estate market will witness strong growth. Real estate prices are expected to continue to increase, especially in areas with complete legal projects and well-invested infrastructure. "The market is gradually warming up, positive signals from supply and purchasing power show that this is a good time for both buyers and investors to start playing again" - Mr. Thang shared.

Mr. Nguyen Van Tung commented: "The end of the year is always a vibrant period for the market. Affordable projects or projects in the high-end segment but with legal guarantees will continue to be the focus of attracting customers."

Lack of projects for mergers and acquisitions

According to Ms. Tran Thi Khanh Linh, currently, the Vietnamese real estate market opens up many opportunities for investors, especially in the field of mergers and acquisitions (M&A) of potential projects or development cooperation with local partners. Market demand is increasingly diverse, focusing on different segments, from housing to industrial parks and offices.

For foreign investors, the demand for residential real estate is still very high. However, they always set high legal requirements, requiring projects to have detailed planning 1/500, even have notice of land use fee payment. However, legal approval for residential real estate projects is being slowed down due to the adjustment of related laws. This limits the supply of housing projects, forcing foreign investors to switch to industrial park and office projects - which have clear legal status, are ready to operate and are easier to M&A.

Source: https://nld.com.vn/thi-truong-can-ho-soi-dong-196241118203327349.htm