From the beginning of the second quarter, the market showed signs of recovery in demand for affordable apartments, driven by the genuine need of many buyers. However, at that time, there were very few projects targeting this segment in the South, leading to a severe shortage of supply.
According to DKRA Group's real estate market report, in the second quarter, supply in Ho Chi Minh City and surrounding provinces recorded a growth of up to 33% compared to the first quarter, but decreased by 87% compared to 2020. Accordingly, across the entire market, there were 15 projects launched (4 new projects and 11 projects in subsequent phases), providing 1,826 units, with new sales reaching 1,179 units.
In particular, Binh Duong is a bright spot, with the majority of affordable apartment products being launched onto the market, mainly concentrated in the three cities of Thuan An, Di An, and Thu Dau Mot. By developing affordable apartment projects in the bordering areas, Binh Duong's projects have helped alleviate the burden of demand for this segment in Ho Chi Minh City.
An affordable apartment project in Di An (Binh Duong) is scheduled for handover in July.
With the support of a synchronized and modern transportation system that is being implemented, such as the Ring Road 3, Ring Road 4, and the Ho Chi Minh City - Thu Dau Mot - Chon Thanh expressway, Binh Duong's development potential and advantages for affordable apartment projects are also considered key drivers of the market in the coming time.
Meanwhile, in Ho Chi Minh City, the main supply remains in the high-end segment, accounting for 91% of new launches in the second quarter. These projects are concentrated in Thu Duc City and have recorded extremely low sales. For this reason, primary market prices have remained relatively stable, while secondary market prices have continuously declined, and liquidity remains low.
According to DKRA's data, in Ho Chi Minh City, the highest selling price for new projects is nearly 95 million VND/m2, while the lowest is 43.5 million VND/m2. In Binh Duong, the highest price is 49 million VND/m2, and the lowest is 31.7 million VND/m2. New supply in Q3 2023 in Ho Chi Minh City is expected to increase, ranging from 1,200 to 1,500 units, and in Binh Duong from approximately 500 to 800 units…
Meanwhile, in Ho Chi Minh City, the majority of projects belong to the high-end segment, meaning liquidity has not improved significantly.
According to experts, although the government is stepping up efforts to remove obstacles from the real estate market, investor sentiment remains unstable after the 2022 downturn. This has led to a continued reluctance of capital to flow into the market, especially in the high-end segment. Coupled with negative macroeconomic news globally, in the short term, investors will continue to wait for opportunities to buy at the bottom.
As for affordable apartments, due to the continued high demand for housing, this segment, along with social housing projects, is considered a lifeline for the market in the latter part of the year. The prices of these products are suitable for the needs and financial capabilities of buyers.
To fuel this recovery phase, many believe that, in addition to implementing policies to remove obstacles, supporting low-interest loan packages is also a crucial factor in the recovery of the real estate market. In recent times, the State Bank of Vietnam has repeatedly reduced the policy interest rate; however, whether lending rates will continue to fall enough to attract investors back to the market remains a challenge for 2024.
Sharing this view, in its report assessing the real estate market situation in the first six months of the year, the Ministry of Construction also noted that the market continues to be sluggish. Although some commercial banks have reduced lending interest rates, activity in the market has not yet become vibrant again.
Source
Comment (0)