According to this expert, in Q2 2024, Ho Chi Minh City continued to witness a shortage of affordable housing. Despite affordable housing in Ho Chi Minh City being redefined as properties priced under VND 3 billion per unit, they remain scarce.
Ms. Giang shared that Savills analyzed the context of affordable housing in Ho Chi Minh City by using various income levels based on consumer income, spending, and savings. Their model assumes that a two-bedroom apartment priced under VND 3 billion is affordable if a homebuyer accumulates savings for 10 years with the support of a mortgage or equity.
However, apartments under VND 3 billion are becoming increasingly limited in Ho Chi Minh City, accounting for only 18% of the primary supply in the first half of 2024 and mostly located more than 10 km from the city center. In the next three years, this segment will account for less than 5% of the supply.
Given the current context, most apartments in this price range in Ho Chi Minh City have already been sold, and future supply will be very limited. According to Ms. Giang, most of the new affordable housing supply will be introduced in Binh Duong, a province bordering Ho Chi Minh City. “Homebuyers in Ho Chi Minh City will have to consider this area to find more affordable options,” she emphasized.
Indeed, several affordable housing projects in Binh Duong, such as Phu Dong Sky Garden and Phu Dong SkyOne by Phu Dong Group, are receiving positive market attention. This interest mostly comes from genuine housing needs and long-term rental investment demands. These projects, located near Ho Chi Minh City and offering reasonable prices, are highly sought after by young individuals and families.
Savills’ Q2 2024 report also indicated a 78% quarterly and 199% yearly increase in the supply of new apartments in Ho Chi Minh City, totaling 1,125 units from one new project and eight subsequent sales launches. Class B apartments dominated the new supply, accounting for 70% of the market share. The primary supply was mainly concentrated in the East (Thu Duc City) with a 57% market share and the West (Binh Tan and Binh Chanh districts) with a 29% share.
Additionally, the average primary selling price of apartments in Ho Chi Minh City reached VND 72 million per square meter of usable area. Many secondary apartments in Classes B and C also experienced significant price increases in the second quarter.
Proposed Planning for Adding 2 New Cities in Ho Chi Minh City
According to Architect Ngô Viết Nam Sơn, Ho Chi Minh City should consider planning two cities within the city in the south and north.
Astonishingly high price for old and dilapidated apartment buildings reaching nearly 200 million VND/m2, rivaling the most luxurious condominiums in Hanoi
Old collective apartments with prices starting from 100 million VND/m2 are usually the first-floor units that can be used for commercial purposes, while the upper-floor units are priced at 60-80 million VND/m2 for residential purposes.
Comprehensive regional connectivity
In addition to building strong physical infrastructure, Ho Chi Minh City needs to strengthen its soft connections with other provinces in the region in order to promote economic development. This includes prioritizing the training of skilled workforce and ensuring access to quality healthcare.
2023 Remittances Surpass Half of Ho Chi Minh City’s Budget Revenue
As part of the Homeland Spring 2024 program in Ho Chi Minh City, this morning (2/2), the overseas Vietnamese delegation had a tour of the City Hall and met with city leaders.
Three Economic Growth Scenarios for Ho Chi Minh City in Q1 2024
At the socio-economic meeting reviewing the results of January and setting the goals for February 2024, held this morning (1/2), the Ho Chi Minh City Institute for Research and Development has presented three economic growth scenarios for the first quarter of Ho Chi Minh City.
