Apartment supply of about 1 billion VND will reappear

Provincial market affected by "increasing wave"

According to a recent report by Savills Vietnam, the affordable apartment segment in Ho Chi Minh City is currently below VND3 billion/unit. However, the supply of this segment has been at the "bottom" of the market in the past 3 years. In addition, the supply of new apartments under VND3 billion/unit only accounts for 18% of the primary supply in the first 6 months of 2024. This is the result of the fluctuating apartment price level increasing over a long period of time.

With the rapid increase in apartment prices in Ho Chi Minh City, many homebuyers have had to look for cheap, affordable products in neighboring provincial markets such as Long An , Dong Nai or Binh Duong. This shift has caused the selling prices of some provincial markets to fluctuate, especially in Binh Duong, an area that is developing strongly thanks to its strength in attracting FDI capital, causing the demand for housing to increase day by day.

Reality shows that, along with the influence of demand from Ho Chi Minh City, new projects in Binh Duong in the past 2 years have mostly focused on the mid-range and high-end apartment segment. Products priced around 1 billion VND, typical of the provincial market around Ho Chi Minh City, have almost disappeared from the market.

Binh Duong market and many neighboring provinces are bustling due to available demand and a large number of customers from Ho Chi Minh City.

Online data from Batdongsan.com.vn recorded in the first half of 2024 shows that the average price of apartments in Binh Duong is from 35-40 million VND/m2. This price also pushes a 2-bedroom apartment, about 60m2 wide, up to 2 billion VND. This selling price has greatly affected the liquidity of the market, as home buyers here are looking for a more affordable price. Especially when the demand of this market has a large part of the workforce, low-income workers.

This imbalance between supply and demand has caused Binh Duong to lack the supply of apartments to meet real demand, while having an excess of high-priced apartments. Poor liquidity has caused local stagnant supply in some projects, but there is a shortage in the low-cost segment. Faced with this situation, many investors have had to find solutions, which is to focus on the real needs of the market by offering more reasonable products, or adjusting the prices offered to probe the market.

Many low-cost projects "quench" supply thirst

Therefore, since the beginning of 2024, many new projects have been introduced to the market to supplement the supply of affordable housing, with prices around 30 million VND/m2. With this price, there will be many products sold for less than 2 billion VND, even just over 1 billion VND/unit with small areas.

Specifically, some projects located in Di An City are currently priced from 1.2 - 1.7 VND/unit, such as TT Avio Di An, the project has broken ground and is expected to launch in the fourth quarter of 2024; Phu Dong SkyOne has just adjusted its average price from 31 million VND/m2 so that the products are in the range of 1.4 - 1.6 billion VND/unit.

Many affordable housing projects are being developed in Binh Duong.

In Thuan An City, the A&T Sky Garden project is also preparing to open a new sale in September with prices starting from 32 million VND/m2. This price also helps buyers access small apartments with prices around 1.5 billion VND. It is known that in the previous sale, a few apartments here were offered for sale with prices starting from only 29 million VND/m2.

Also in this area, the Ben Hill project is also planning to open for sale at the end of this year with an expected price of 30 million VND/m2. Thus, small apartments in this project will cost only from 1.3 billion VND/unit. Similarly, The Emerald 68 project is also being introduced to the market with a price of 1.68 billion VND/unit but the supply is not much, due to the positioning of this project in the high-end segment.

In addition, the Binh Duong market is also recording many projects in the mid-range segment, helping to diversify the product portfolio and bring more choices to buyers. The selling price ranges from 35 - 48 million VND/m2, concentrated in "hot" areas of Binh Duong such as Tan Van, Di An, Thuan An,...

Faced with the emergence of a series of affordable projects, Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn, commented: "The problem of supply-demand imbalance has forced investors with projects for sale at the end of the year to recalculate the price level to match the general purchasing power, in the context of liquidity not recovering as expected."

Source: https://www.congluan.vn/nguon-cung-can-ho-khoang-1-ty-dong-se-xuat-hien-tro-lai-vao-giai-doan-cuoi-nam-post312751.html