No new apartment projects opened for sale in the first two months of the year

No new projects were recorded for sale.

On March 12th, DKRA Group released its report on the residential real estate market in Ho Chi Minh City and surrounding areas for January and February 2024.

Accordingly, in the apartment segment, new supply in the first two months of the year decreased, reaching only 66% compared to the same period in 2023, concentrated in the period before the Lunar New Year, mainly distributed in Ho Chi Minh City, Binh Duong and Ba Ria - Vung Tau.

Real Estate - Ho Chi Minh City: No new apartment projects launched in the first two months of the year. — In the first two months of the year, Ho Chi Minh City and its surrounding areas saw no new apartment projects launched. The current supply comes from projects that were offered for sale previously.

Notably, in the first two months of this year, the apartment market in Ho Chi Minh City and its surrounding areas (Binh Duong, Dong Nai, Ba Ria - Vung Tau, Long An , and Tay Ninh) did not record any new project launches. During this period, market supply came from 6 projects, but all were in subsequent sales phases.

Accordingly, the majority of apartment supply, with over 300 units, is located in Ho Chi Minh City. The remaining nearly 140 units are mainly concentrated in Binh Duong and Ba Ria - Vung Tau provinces. Thus, the number of apartments launched for sale in the first two months of this year is still down 34% compared to the same period in 2023.

Although many developers have implemented promotional policies such as discounts for quick payments, extended payment terms, and launch gifts to stimulate the market, the sales volume of new apartments in the past period still decreased by 53% compared to the same period last year due to the impact of the extended Lunar New Year holiday.

In particular, Class B apartments continued to lead the market, accounting for 93% of new sales and mainly concentrated in the western part of Ho Chi Minh City.

In the context of a sluggish market, policies such as quick payment discounts, extended payment terms, and launch gifts continue to be applied by most developers to stimulate market demand.

Primary market prices remained relatively stable, with localized increases of 3% - 6% recorded in some projects in Ho Chi Minh City that had complete legal documentation and rapid construction and handover progress.

New apartments in Ho Chi Minh City are currently priced between 52.5 and 82 million VND/m2. Meanwhile, in Binh Duong province, the price of new apartments ranges from 35.5 to 48.7 million VND/m2. In Ba Ria - Vung Tau province, the price of new apartments ranges from 48.3 to 52.8 million VND.

In the resort real estate segment – resort villas and resort real estate – condotels – the market also did not record any new projects in the first two months of the year, with only one project in the next sales phase in each segment, resulting in a sharp decrease in both supply and sales rate.

The land plot segment emerged as a rare bright spot in the market, but only recorded one new project and three projects in their next sales phases, supplying 138 plots to the market, a 14% decrease compared to the same period in 2023.

New supply is expected to show significant improvement.

According to DKRA Group, in the first two months of 2024, the supply and new sales volume of land plots recorded decreases of 14% and 25% respectively compared to the same period in 2023.

In particular, transactions were concentrated in the product group with an average price of approximately 21.5 million VND/m2. Long An province was the main contributor to the supply and consumption of new properties in the market, accounting for 60% and 58% respectively.

Real estate - Ho Chi Minh City: No new apartment projects launched in the first two months of the year (Figure 2). — *Ho Chi Minh City leads the market, accounting for 52% of the new supply and 94% of the new consumption.*

Primary market selling prices tend to remain stable compared to the end of 2023. New land prices in Long An range from 17.2 to 54.9 million VND/m2, in Binh Duong from 14.5 to 16 million VND/m2, and in Dong Nai from 12.3 to 13.7 million VND/m2.

In other developments, the secondary market tended to remain flat compared to the end of 2023. Market liquidity was average, and projects with completed infrastructure, legal compliance, and high market creation levels attracted investor interest.

DKRA Group anticipates a significant increase in new supply in the coming months, with most products concentrated in areas bordering Ho Chi Minh City.

Source