Demand Heats Up for Ready-to-Move-In Apartments in Ho Chi Minh City’s Neighboring Areas
A young couple recently shared that they were in urgent need of an apartment in Ho Chi Minh City (HCMC) or its vicinity due to the arrival of their first child. After months of searching through dozens of projects, they finally settled on an apartment complex in Di An (Binh Duong), near the Pham Van Dong highway.
According to the husband, the couple prioritized ready-to-move-in or near-completion apartments due to their immediate housing needs. Project quality was also an important factor. After considering various options, they were impressed by the Phu Dong Sky Garden apartment complex in Di An, which was nearing completion and conveniently located just 20-30 minutes from HCMC’s center.
Completed apartments in areas bordering HCMC are currently in high demand.
It has been observed that since the Lunar New Year, demand for primary and secondary market apartment transactions has increased in projects located in areas bordering HCMC. Several near-completion projects in Binh Duong and Dong Nai, priced between VND 2-4 billion per unit, have experienced impressive absorption rates of around 80-90%.
The scarcity and rising prices of apartments in HCMC have forced prospective homeowners to consider renting or exploring neighboring areas for more affordable options. This has created a clear advantage for ready-to-move-in apartment projects in neighboring areas with convenient transportation links.
In Binh Duong recently, there has been a resurgence in demand for near-completion apartment projects priced around VND 35 million per square meter. Notably, projects offering high discounts have attracted buyers seeking their own homes. For instance, the Phu Dong Sky Garden apartment project currently offers discounts of up to 15% of the total apartment value, along with the opportunity to personally inspect the units, which has helped maintain the development’s appeal ahead of its handover.
In addition to owner-occupancy, investment purchases for rental purposes are also driving interest in affordable projects. According to a survey by Batdongsan.com.vn, the condominium rental market continues to perform well, with interest remaining among the highest due to a gross yield rate of approximately 12.5% per year (including rent and appreciation). With young families facing challenges in purchasing homes, the rental market presents an attractive option for investors.
Demand for both residential and investment rentals is driving increased sales of completed apartment projects.
According to experts, investing in rental apartments is not a new concept in the real estate market but remains popular due to its potential for stable cash flow. From an investment perspective, ready-to-move-in or near-completion apartments offer several advantages, including the quick turnover of capital through rental income. This is why projects nearing completion and priced within reach are experiencing increased demand.
For projects bordering HCMC, convenient transportation connections are a key factor considered by buyers before making a decision.
Troy Griffiths, Deputy Director of Savills, recently commented that infrastructure development is bringing outlying areas closer to city centers, reducing travel times. This has enabled developers to access land at lower prices, allowing for the development of more affordable housing. Buyers can take advantage of lower-priced properties while commuting distances remain reasonable.
Griffiths emphasized that in major cities like Hanoi and HCMC, the natural housing demand is estimated at around 50,000 units annually. This demand has not been met for some time, leading to a pent-up need. However, the supply of affordable housing is expected to increase in the next two years in areas surrounding Hanoi and HCMC, such as Binh Duong and Bac Ninh, addressing the affordability concerns of buyers.
Geographically, Hanoi and HCMC lack clear boundaries between adjacent urban areas. Surrounding provinces are being drawn closer to the larger cities, enabling their continued expansion.
