Meeting the demand for actual housing, apartments in Ho Chi Minh City attract investment capital.

The supply of apartments entering the Ho Chi Minh City market at the end of the year is considered an advantage in the context of a scarcity of new projects starting construction. In particular, projects that meet the needs of actual housing are increasingly proving their strong position in the market.

Demand continues to reverse towards apartments.

Compared to land plots or townhouses/villas, apartments continue to be the segment driving the recovery of the Ho Chi Minh City market in the last months of 2024.

According to Batdongsan.com.vn's Q3 2024 data, thanks to the rapid increase in the city's population due to migration, the supply remains scarce, and very few projects are scheduled to begin construction by the end of this year, boosting demand for apartment ownership.

Given that the market has not fully recovered and bank interest rates remain low, this presents an opportunity for buyers to take advantage of projects launched at the end of the year with reasonable prices and favorable sales policies. Consequently, many people are making decisions to buy homes, anticipating potential profits at this time. They are also preparing for the possibility of rapid increases in real estate prices after the new land price list for Ho Chi Minh City is issued and new laws come into effect.

Observations show that in Ho Chi Minh City, apart from a few projects launching subsequent phases, very few new supply sources have been introduced towards the end of the year. Currently, in the South of Ho Chi Minh City, the Essensia Sky green and health-focused apartment project by Phu Long is a rare primary supply source with complete legal documentation that has already commenced construction. In the context of a still recovering market, this developer's ability to bring the project to market demonstrates its financial strength and expectation of capitalizing on the year-end demand surge. The project is expected to launch in early November 2024 with attractive sales policies.

Phu Long's Essensia Sky green and wellness apartment project is a rare primary supply with complete legal documentation that has already commenced construction. Photo: PL

In the East, the FIATO Uptown project by Thang Long Real Group, located right on To Ngoc Van Street in Thu Duc District (formerly Thu Duc City), is also a rare source of primary housing in the area with reasonable prices, attracting buyer interest. The project is situated within the 9.2-hectare Thang Long Home - Hung Phu residential area, with land titles already issued and 90% of residents already living there. The project's advantage lies in its proximity to the upcoming completion of the Ho Chi Minh City Ring Road 2 through the East, along with existing community amenities in the area. The project's value is expected to increase significantly once the infrastructure is completed.

According to Mr. Vo Huynh Tuan Kiet, Director of Housing at CBRE Vietnam, the supply of housing in Ho Chi Minh City will continue to be limited until the end of the year. However, a positive sign is the growing demand. There are increasingly few apartment projects in Ho Chi Minh City priced between 50-60 million VND/m2. In the context of increasing demand for actual housing, these projects have an advantage.

This expert emphasized that opportunities in the Ho Chi Minh City housing market still lean towards meeting the demand for actual occupancy. Meanwhile, investors tend to buy apartments to rent out or wait for long-term price appreciation. Buyers still seek stable investment channels like real estate after the complex developments in other investment channels.

“The third quarter of 2024 is the decisive quarter for a new phase of the real estate market. The fourth quarter is considered the peak of the market. Around the first and second quarters of 2025, the supply of apartments in Ho Chi Minh City is expected to improve, and booking and project development activities will become vibrant again after a long period of stagnation. Currently, investors and real buyers are gradually returning to the market, showing positive signs,” Mr. Kiet emphasized.

There is no reason for primary market apartments to decrease in price.

According to CBRE Vietnam, in the context of supply shortages, new projects face difficulties in resolving legal issues, investment costs, loan opportunities, and developers' price expectations are all increasing. Therefore, there is no reason for primary market apartment prices in Ho Chi Minh City to decrease. Perhaps, the fact that the market has not yet fully recovered presents an opportunity for savvy buyers, as most projects offered at this stage are adjusting to the current market situation. In the future, the price level will certainly change.

The market is showing a "buzz" surrounding the South Saigon real estate market, with primary supply offering reasonable prices and attractive sales policies towards the end of the year. (Photo: PL)

Ho Chi Minh City is currently urgently directing the adjustment of land price tables and their issuance before October 20th. After the new land prices are issued and the relevant circulars and legal guidelines are widely applied, land costs are expected to increase. This will lead to an increase in real estate prices. The apartment segment will be particularly affected by legal frameworks, initial land processing costs, and capital mobilization costs. Therefore, the primary prices of new projects will increase, leading to an increase in the secondary prices of projects already completed or handed over. This is why the overall real estate price level may change from the beginning of 2025.

According to Ms. Pham Ngoc Thien Thanh, Head of Research and Consulting at CBRE in Ho Chi Minh City, the primary apartment market has not shown a downward price trend. While price reductions have occurred in the secondary market, they are localized and not representative of the entire apartment market. Some projects that were temporarily suspended for 2-3 years are now being resold with increases of 10-30% compared to their previous valuations. This reflects the increased expectations from developers and rising input costs, creating a new price level for the market.

Sharing the same view, a representative of the Vietnam Real Estate Brokers Association stated that primary market prices continue to rise because, although supply has improved, it is still very difficult to meet demand. The majority of new supply entering the market today is completed to a high standard, with increased investment costs, especially those related to land. Therefore, primary real estate prices will continue their upward trend.

Source: https://baodautu.vn/batdongsan/dap-ung-nhu-cau-o-thuc-chung-cu-tphcm-thu-hut-dong-tien-dau-tu-d227648.html