Booming real estate market for affordable apartments in Ho Chi Minh City

With its vast land and well-established infrastructure, the Binh Duong housing projects are continuously being announced in the market throughout 2023. Not stopping there, the real estate market in this suburb of Ho Chi Minh City is projected to supply tens of thousands of apartments on the market by early 2024.

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The Binh Duong apartment market is expected to supply tens of thousands of apartments to the market in early 2024.

Upcoming apartment projects

In contrast to the general calm atmosphere of the real estate market, the last months of 2023 continue to see the vibrancy of the Binh Duong real estate market. As developers continuously announce a series of apartment projects, tens of thousands of apartments have been supplied to the market recently.

Some notable projects include Bcons City with 2,000 apartments by Bcons, Picity Sky Park with 1,500 apartments by Pi Group, The Emerald 68 with 800 apartments by Le Phong, Phu Dong SkyOne with 800 apartments by Phu Dong Group, and Astral City with 5,000 apartments by Danh Khoi Group, which has been restarted after 2 years.

According to Savills Vietnam’s prediction for the housing supply in 2024, Ho Chi Minh City will have more than 16,000 apartments and 2,000 low-rise houses for sale. Surrounding provinces such as Binh Duong and Dong Nai will have more than 6,000 low-rise houses and 9,000 apartments for sale. However, data collected from projects expected to be launched in Binh Duong in 2024 suggests that this number may be much higher than forecasted.

Specifically, some apartment projects expected to be launched in early 2024 in the Binh Duong market are A&T Sky Garden with a scale of 900 apartments by A&T Binh Duong, Symlife Thuan An project with a scale of 600 apartments by Nam Hiep Thanh Binh Duong, Binh Duong Tower project with a scale of 6,600 apartments by Phat Dat, Green Tower project with a scale of 1,175 apartments by TBS Group, Opal Luxury project with a scale of 3,400 apartments by Dat Xanh, Bcons Binh Thang project with 500 apartments by Bcons Group, T&T Capital’s project in Di An City (Binh Duong) with about 2,000 apartments, etc.

Therefore, these projects are expected to supply tens of thousands of apartments to the Binh Duong market, with the expected selling price ranging from 30 to 55 million VND/m2.

Bright spots in apartment and townhouse real estate

Regarding the real estate market in Ho Chi Minh City and the surrounding area in 2024, Ms. Giang Huynh – Deputy Director, Head of Market Research and S22M Department at Savills Ho Chi Minh City, said: In the short term, the housing market will not be able to recover strongly next year as it has just gone through a prolonged period of stagnation since late 2022.

Ms. Giang Huynh – Deputy Director, Head of Market Research and S22M Department at Savills Ho Chi Minh City

Factors that are currently affecting the market may continue into next year, such as difficulties in cash flow and pressure to repay bond debts for developers, low liquidity, and the psychological impact on buyers.

However, the housing market is expected to gradually recover thanks to the government’s efforts in promoting public investment, developing infrastructure, and improving transparency in the real estate business.

As the economic center of the southern region where there is a high demand for housing, the real estate market in Ho Chi Minh City will recover first, followed by neighboring provinces such as Binh Duong and Dong Nai.

The expected gradual recovery of housing supply from next year is also expected to be a strong driving force for the market next year. If developers can implement projects on schedule, with reasonable selling prices and transparent legal procedures, they will be able to attract buyers and gradually restore market liquidity. The responsibility of the government in resolving legal obstacles for real estate projects also plays a key role in supporting market recovery.

According to Ms. Giang Huynh, Ho Chi Minh City will still be an area with a large housing demand due to its rapid economic and urban development. However, due to limited land funds and high real estate prices, the trend of investing in real estate in adjacent provinces is inevitable.

In the near future, real estate on the outskirts of Ho Chi Minh City will continue to be a good investment product due to improved infrastructure connections, which will shorten travel time from nearby provinces to Ho Chi Minh City.

SOURCEcafef
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