Brian Jeffrey
The latest report from DKRA Group regarding HCM City’s housing market indicates a minor decrease in available apartments compared to the previous month.
There’s evidence of recovering demand for housing, with new projects launching in the provinces of Binh Duong and Long An.
According to DKRA Group, the primary prices for apartments remain elevated primarily due to rising input costs. In HCM City’s neighboring areas, apartment prices have seen a rise of 3-8 percent in October from the prices recorded 3-6 months ago.
In the secondary market, prices and transaction volumes are on the rise, particularly for projects that possess land-use right certificates or are ready for handover.
In HCM City, the price range for primary apartments is between VND30 million and VND493 million per square meter. The costs in Binh Duong range from VND26 to VND59 million per square meter, in Ba Ria-Vung Tau VND35-61 million, in Dong Nai VND33-41 million, and in Long An VND21-29 million per square meter.
A study by Savills Vietnam highlights that from 2019 to 2023, housing prices in HCM City rose by 3 percent annually, aligning with personal income growth. However, the disparity between housing prices and incomes is widening, making home ownership more challenging.
Reports indicate that annually, around 50,000 apartments are required for middle-income earners and young families within HCM City.
The latest apartment launches in HCM City primarily feature high-end properties located in the eastern districts of the city. One example includes the upcoming phase of Eaton Park in Thu Duc City by Gamuda Land, priced at VND140 million per square meter.
Masterise Home has introduced two apartment blocks within the Masteri Grand View project, with prices set at VND100 million per square meter. This marks the initial multi-storey development within The Global City area of Thu Duc.
In Vinhomes Grand Park, units from the next phase of The Opus One are being marketed at VND100 million per square meter. After completing five basements, King Crown Infinity has released new units priced between VND100-125 million per square meter.
Giang Huynh from Savills Vietnam pointed out that HCMC is currently grappling with a housing shortage. While there is expected growth in high-end projects soon, the need for affordable housing persists.
Savills Vietnam perceives affordable housing as a lucrative market segment due to continuous high demand. As the demand for such units rises and available options in HCM City are few, these types of homes tend to emerge only in surrounding provinces.
With ongoing infrastructure improvements, Savills anticipates that around 24,000 affordable apartments will be available in neighboring provinces within the next three years, particularly in Binh Duong and Long An.
Analysts have noted that the western gateways of HCM City are now alive with emerging affordable apartment projects.
NamLong Group has launched 500 apartments for sale in the third phase of the EHome Southgate project, located within the 355-hectare Waterpoint new urban area. Likewise, SeaHoldings Group has introduced 2,000 apartments at the Destino Centro project, both priced reasonably at around VND1 billion per unit.
Tran Hien Phuong, CEO of SeaHoldings Group, mentioned that the real estate market in regions surrounding HCM City, including Long An, is experiencing a positive momentum.
At the end of October, Eximrs began distribution for the Conic Boulevard project in Binh Chanh district.
Experts predict that following the Covid-19 pandemic, the latter months of 2024 will witness a surge in the southern real estate market’s activity. Besides ongoing projects, new offerings across various market segments are expected to emerge.
The HCM City People’s Committee has reported that the market is starting to heat up, with local authorities striving to remove legal obstacles to expedite housing projects.
However, the committee expects a slow recovery with few significant breakthroughs, stating that prices might see slight increases in certain areas due to adjustments in land-price frameworks, although drastic fluctuations are not anticipated.
Affordable apartments are projected to be the most promising segment in the market, given the slow increase in supply coupled with high demand.
