According to Mrs. Giang Huynh, recently, apartment projects in Ho Chi Minh City have sold well thanks to clear legal conditions before launch, long payment term, bank loan support, reputable developers, and affordable prices ranging from 2 to 5 billion VND per unit.
It can be seen that from the second quarter of 2023 until now, the apartment market in Ho Chi Minh City still belongs to companies that have products launched before Lunar New Year such as Nam Long, Khang Dien, Vingroup, Masterise Homes. The reasonable supply sources from these companies have been well received.
According to Mrs. Giang Huynh, the good sales of apartment projects in Ho Chi Minh City are due to the affordable prices ranging from 2 to 5 billion VND per unit. This is also a large supply source in the market.
In early 2024, according to Mrs. Giang, the new supply of apartments is still limited, and the sales policies of developers will be maintained after the Lunar New Year before new plans are made.
For example, Flora Panorama project located in Mizuki Park with a price starting from 46 million VND/m2 in South Ho Chi Minh City by Nam Long is still implementing attractive sales policies. Specifically, with the “move-in right away” policy, buyers will receive a high-end furniture package worth up to 500 million VND and receive the unit in March 2024. The second policy is “Peaceful Payment”, where banks provide loans up to 70%, with no principal repayment for 2 years, only a fixed interest rate of 2% per year for 24 months, equivalent to about 4 million VND per month, and receive the unit in December 2024.
Meanwhile, at Akari City Phase 2 project (frontage of Vo Van Kiet Street, Binh Tan District, Ho Chi Minh City), this developer also offers attractive sales policies including “1-0-2”. Specifically, with apartments priced from 45 million VND/m2, buyers only need to make the first payment of 150 million VND, and the banks provide loans up to 80%. Buyers do not have to repay the principal within 2 years, only a fixed interest rate of 1% per year – equivalent to 2 million VND per month until August 2026. In case of not taking out a loan, buyers will receive a 7% discount for early payment. The project has completed the roof for 4 towers in Phase 2, and units will be handed over in the fourth quarter of 2024. These are all affordable apartment projects by Nam Long that have attracted attention from buyers.
Sharing about the selling prices in the context of continuing scarce supply of apartments in Ho Chi Minh City, Mrs. Giang Huynh said that the primary sales prices are around 69 million VND/m2 net, a 36% decrease quarterly and a 45% decrease yearly. This price has returned to the level of 2020 when many expensive projects had to temporarily suspend sales. In fact, in 2023, Ho Chi Minh City did not have any apartments under 2 billion VND per unit, and 90% of transactions were in the price range from 2 to 5 billion VND per unit.
“From 2024 to 2026, the supply of apartments priced from 2 to 5 billion VND will become increasingly scarce, and the supply will mainly focus on the 5 to 10 billion VND per unit segment. However, the demand of buyers still mainly concentrates on the affordable price segment,” Mrs. Giang stated.
Having the same point of view, Mrs. Duong Thuy Dung – Managing Director of CBRE Vietnam, believes that most of the transactions in the current apartment market are mainly from products priced below 50 million VND/m2. This price level may become scarce in the coming period when the primary apartment market in Ho Chi Minh City continues to rise. Projects with prices below 50 million VND/m2 are also not evenly distributed among different areas in Ho Chi Minh City, most of them are concentrated in the West and South.
“Recently, the absorption rate of apartments in some projects has been positive. This is due to the positive actions of developers, including applying preferential policies such as extending the payment schedule and offering high discounts for early payments. Along with that, the decrease of interest rates and the improvement of homebuyers’ sentiments have contributed to the increase in the number of sold units,” Mrs. Dung shared.
There is still a significant demand for affordable projects in Ho Chi Minh City.
In the recent newsletter, Mr. Matthew Powell, Director of Savills Hanoi, emphasized that for sustainable development, the residential real estate market needs to meet the actual demand.
According to him, businesses must understand that the main demand in the current market is not in the luxury segment. It has to be in the mid-range price segment. Therefore, developers need to consider the actual conditions of the market and diversify their residential products instead of bringing a large number of similar projects with limited facilities that do not provide a comfortable living environment. Because well-planned projects, good construction quality, and diverse utilities that are friendly to residents are more likely to succeed than projects that focus solely on large scale and high prices. All of these need to be based on actual demand. Besides price, quality living environment, design, and utilities are the top factors that buyers are interested in.
“Looking at the overall demand in the market, the main target customers are young families, people moving to the city to work, hoping to find a place for long-term settlement. Therefore, when there is existing actual demand, developers also need to position the real estate products according to market needs and sell what the market needs,” shared an industry expert.
