The real estate market in Ho Chi Minh City is seeing a shift towards suburban areas.

CBRE (Vietnam) Co., Ltd. has just released its Q3 2024 real estate market spotlight report for Ho Chi Minh City , which shows differentiation among different real estate segments but all share the common point of increased supply and liquidity.

The supply of townhouses and villas has increased dramatically.

Regarding the townhouse/villa market in Ho Chi Minh City, a CBRE report noted that an additional 132 townhouses were launched for sale from a project in Binh Chanh district, located more than an hour's drive from the city center, with a primary selling price of approximately 90 million VND/m2 of land.

With this new supply, the average primary market selling price this quarter decreased slightly by 1% compared to the previous quarter, reaching over 300 million VND/m2 of land. The average selling price in the secondary market remained at over 140 million VND/m2 of land.

The average selling price for villas and townhouses in Ho Chi Minh City has reached over 300 million VND per square meter of land.

In the third quarter of 2024, the townhouse/villa market in Ho Chi Minh City recorded more than 150 successful transactions, mainly from newly launched projects and some projects with remaining primary inventory, primarily concentrated in Thu Duc City and District 7.

In the last three months of 2024, the land-attached real estate market in Ho Chi Minh City is expected to welcome more than 300 new units for sale, contributing to a total supply of new low-rise houses for the whole year reaching nearly 600 units.

Compared to only 40 units in the whole of 2023, the supply of new low-rise housing in Ho Chi Minh City this year has increased significantly, mainly from new projects located on the eastern and western edges of the city, so the expected selling prices are lower than the market average.

Many real estate projects facing legal obstacles have been "unlocked".

For the apartment market, both new supply and projects already launched are located in districts far from the city center.

Despite the low supply of officially launched units, according to CBRE, a bright spot in the Ho Chi Minh City market this quarter was the resale of nearly 300 apartments from projects that had temporarily suspended sales in the last 1-2 years in Thu Duc City and District 7, and approximately 2,700 apartments that had not yet been officially launched but had begun accepting reservations, with sales expected to begin in the near future.

Projects that restarted this quarter, such as D-Homme (District 6), D-Aqua (District 8), and Lavida Plus (District 7), all adjusted their primary selling prices upwards by 10% - 30% compared to the previous phase.

In addition, by the end of the third quarter of 2024, previously legal-obstructed projects such as the Gem Riverside project (Dat Xanh Homes Riverside) in Thu Duc City and The Forest Gem project (new name: Central Home Saigon) in Binh Thanh District are also preparing to restart this year.

"This is seen as a positive sign regarding the progress in resolving legal issues for real estate projects in Ho Chi Minh City, since the number of newly licensed projects in Ho Chi Minh City has decreased sharply since 2019," the report stated.

Many projects facing legal obstacles in Ho Chi Minh City have been "unlocked".

As of Q3/2024, the average primary selling price of apartments in Ho Chi Minh City reached VND 66 million/m2 (net usable area), a 4% increase quarter-on-quarter and nearly an 8% increase year-on-year, largely due to price adjustments by older projects during the new sales phase.

The secondary market in Ho Chi Minh City continued its slight upward trend this quarter, increasing by an average of 3% quarter-on-quarter and 5% year-on-year, reaching an average of VND 48 million/m2 (net usable area) in Q3/2024.

Most apartment segments recorded increases in secondary market prices this quarter, with the luxury apartment segment showing the most outstanding year-on-year increase in resale prices, with prices in Q3/2024 potentially increasing by nearly 10% compared to the same period last year.

Most projects with remaining inventory recorded positive sales rates, with over 2,000 apartments successfully transacted in the quarter, nearly double the number from the previous quarter.

Some projects currently in the reservation phase have high projected selling prices, causing buyers to consider neighboring projects with similar quality but lower prices and the possibility of receiving the property sooner.

In the coming period, Ho Chi Minh City is expected to have approximately 3,000 new apartment units launched for sale in the last three months of 2024, equivalent to approximately 5,000 new apartment units launched for sale in 2024 as a whole.

Compared to last year, the Ho Chi Minh City apartment market is expected to see a decrease in supply, as most large-scale future supply projects have postponed their launch to 2025.

Some projects that plan to resume sales after legal obstacles are removed are also expected to launch this year but officially open for sale next year. In 2025, the market is expected to have nearly 10,000 new apartments for sale, almost double the number in 2024.

The real estate market in Ho Chi Minh City is experiencing a surge as properties shift towards suburban areas.

Commenting on the overall housing market in Ho Chi Minh City, Ms. Duong Thuy Dung - CEO of CBRE Vietnam said: "A trend that is not new but is becoming increasingly clear is the growing interest of investors and homebuyers in neighboring markets such as Binh Duong and Long An, with more and more housing projects being developed around the border areas between these provinces and Ho Chi Minh City."

In the first nine months of 2024, the apartment market in Binh Duong alone saw over 3,000 new units launched, nearly double the number of new units launched in Ho Chi Minh City during the same nine-month period.

With apartment prices in Binh Duong only 50% - 70% of those in Ho Chi Minh City, and housing prices in Ho Chi Minh City continuing to rise due to high demand and limited new supply, homebuyers are willing to move further to own a home.

Source: https://www.nguoiduatin.vn/thi-truong-bat-dong-san-tphcm-noi-len-lan-song-chuyen-dich-ve-vung-ven-204241009145927489.htm