Real estate market in the hands of buyers

Customers are increasingly demanding in terms of quality and legality of projects and reputation of investors.

The real estate supply in the Southern region is expected to have many positive improvements compared to last year, when many businesses announced the opening of new product baskets, with very competitive sales policies. For example, Nam Long Group is re-deploying sales activities for the next phase of the Flora Panorama Project in Mizuki Park Urban Area in Binh Chanh and Akari City in Binh Tan with many adjusted policies.

Accordingly, Flora Panorama has a selling price from 46 million VND/m2, paying 30% of the apartment value, the rest is divided into many installments until receiving the house in December. The bank lends up to 70%, the principal grace period is 2 years, the fixed interest rate is 2%/year for 24 months, equivalent to 4 million VND/month, instead of the 6% rate applied from the previous sale. The investor also gives away gold, an interior package worth 500 million VND, along with a series of incentives.

The Akari City project has also just adjusted its sales policy. Accordingly, the initial payment level has been adjusted from 300 million VND, fixed interest rate of 5% per year, down to 150 million VND, fixed interest rate of only 1%, equivalent to 2 million VND/month. In case of no loan, quick payment is discounted 7 - 10%.

In addition to the supply from projects under construction, the market also welcomes a number of new apartment projects that will be implemented this year. For example, Gamuda Land Group and main contractor Fountech held a groundbreaking ceremony for the Eaton Park Apartment Complex Project in Thu Duc City in December 2023. The project has a scale of 3.5 hectares with about 2,000 apartments, expected to open for sale from the second quarter of 2024, with prices ranging from VND110 - 140 million/m2.

Similarly, luxury real estate developer Masterise Homes will start construction on three high-rise complexes in The Global City (Thu Duc City). It is expected that this high-rise complex will receive pre-orders from the first quarter of 2024 and start sales from the third quarter of 2024.

In Binh Duong , at the end of January 2024, Phat Dat Company started construction on a high-rise residential project with a scale of 2,700 apartments. This project was rushed into construction after only 3 weeks of being licensed, and is expected to accelerate sales in the first half of 2024. Meanwhile, Phu Dong Group has just broken ground on the Phu Dong SkyOne apartment project in Di An City after many years of preparation. The project has a scale of 800 apartments, with prices of 32 - 35 million VND/m2, and is expected to officially open for sale in the first quarter of 2024.

In Long An , Seaholdings is also preparing to launch the Destino Centro Project, located on the frontage of National Highway 1A with more than 2,000 affordable apartment products, while offering financial solutions to increase many touch points in customer needs and requirements.

In a recent report predicting housing supply in 2024, Savills Vietnam said that the Ho Chi Minh City market will have more than 16,000 apartments and 2,000 low-rise houses for sale. Neighboring provinces such as Binh Duong and Dong Nai will have more than 6,000 low-rise houses and 9,000 apartments for sale. However, only if the legal procedures for the projects of investors are completed on schedule will the above figures be feasible.

It can be seen that the real estate market is recovering positively in terms of supply. Many businesses commented that the market's opportunities lie in products that serve real housing needs, meeting people's desire to own their first home. Most projects for sale come with attractive sales policies, preferential loan interest rates extended for 2-5 years after receiving the house. The payment progress is quick, only about 1.5-2% per month, the initial payment is 5-10%...

Ms. Giang Huynh, Deputy Director of Savills Ho Chi Minh City, said that products serving real housing needs such as apartments will be prioritized in investors' portfolios because they can generate regular cash flow and maintain stable prices. However, from 2024, customers' home buying trends will change. In addition to stricter requirements on the quality and legality of projects, buyers are more concerned about the reputation of investors, sales policies and consider payment incentives, selling prices and long-term potential of the project before paying.

Sharing the same view, Mr. Nguyen Nhat Truong, Director of Marketing and Customer Service at Seaholdings Company, believes that 2024 will be the year to lay the “foundation” for a new development cycle. However, we cannot expect a boost at this time, but the market will gradually strengthen its confidence to accelerate at a time when the economy grows again and macro-management policies are absorbed.

Source