In recent weeks, completed apartment projects in Ho Chi Minh City with proper legal documentation, suitable pricing, and upcoming or completed handovers have held a significant advantage in terms of demand. Similarly, Binh Duong province is also witnessing a surge in interest for its residential projects. Developers in Binh Duong have been accelerating handover activities and introducing attractive sales policies to capture the rising demand following the enforcement of the new Law from August 1st.
The “effect” spilling over from Ho Chi Minh City to its neighboring province is evident, with the Binh Duong market buzzing since the new Law took effect. At the beginning of August 2024, field observations at the Honas Residence apartment project by Hoang Nam Investment, located on Binh Thung Street, Binh An Ward, Di An City, Binh Duong Province, revealed a daily average of about 20 visitors coming to inquire about the project, including both pre-arranged and walk-in customers. There are signs of a strong increase in successful transactions in the past 2-3 weeks.
There are signs of increased interest in Binh Duong apartments. Photo: HV, taken in early August 2024.
After taking a tour of the actual apartments, we chatted with a broker selling this project and learned that there has been a recent increase in the number of proactive visitors interested in the completed apartments. Compared to projects that are still in the development phase, these ready-to-move-in apartments attract more attention. Customers also tend to make decisions faster when the developer offers attractive sales policies. Currently, Honas Residence is offering an appealing deal where buyers only need to pay 140 million VND, equivalent to 10% of the apartment value, to receive the keys to their new home. Additionally, the developer provides flexible payment methods to cater to diverse customer profiles, such as a 12- or 36-month interest-free installment plan. For those opting for bank loans, customers can benefit from an interest grace period of 12 to 18 months, reducing financial pressure.
“Nowadays, there is a fear among homebuyers that prices will increase for new projects that have not yet paid land use fees according to the new Law and the updated land price framework. Consequently, there is a growing preference for apartments with completed legal documentation,” the broker shared.
Similarly, at Phu Dong Sky Garden, an apartment project by Phu Dong Group located on An Binh Street, An Binh Ward, Di An City, which is in the final stages of completion and scheduled for handover in the fourth quarter of this year, there has been a notable week-by-week increase in the number of visitors. The developer has only a few dozen units left in their inventory.
According to the project’s sales director, 11 units were sold last week. Additionally, investors are starting to time their purchases closer to the handover date to take advantage of potential price differentials. “We receive approximately 90 visitors per week. As homebuyers are actively seeking ready-to-move-in options, the secondary market is also experiencing improved liquidity,” the director noted.
Since the beginning of Q3 2024, homebuyers have been actively seeking completed apartments in the vicinity of Ho Chi Minh City, particularly those with reasonable prices. Photo: HV
Observations suggest that, apart from the appeal of immediate occupancy or rental potential, developers are also offering enhanced incentives to expedite the sale of their remaining inventory. The enforcement of the new Law has bolstered buyer confidence in the market. Many customers are making quicker decisions to take advantage of the current pricing and promotional opportunities offered by developers for their final inventory.
Additionally, while the Binh Duong market has seen a significant number of projects being advertised for sale, there have been very few projects nearing completion and handover. This scarcity of ready-to-move-in options has further fueled demand for this segment during this period.
According to statistics from the Binh Duong Province Department of Construction, from March 2016 to July 15, 2024, there were 112 housing projects in the province that met the conditions for selling future homes, totaling nearly 58,700 units. From the beginning of 2024 to the present, there have been five projects in the province that have met the conditions for sale according to regulations. DKRA’s July 2024 apartment market report also indicated that new apartment supply in the southern region increased by 9% compared to the previous month, mainly in Binh Duong Province.
Binh Duong leads in new apartment supply in the Southern market in 7/2024, but the number of projects entering the handover phase is relatively low. Source: DKRA
While there has been an increase in the number of future home projects in Binh Duong that meet the conditions for sale compared to the previous period, the number of completed apartments remains relatively low. This is partly due to the fact that many projects were launched several years ago but have not yet been fully constructed. The limited number of completed apartments has made it challenging for homebuyers seeking immediate occupancy to find suitable options.
Mr. Kien further added that many customers are willing to invest in completed apartments, even if the profit margin is lower than that of future homes, because they prioritize safety. Moreover, after years of real estate market fluctuations, assets that can immediately generate cash flow, such as completed apartments, factories, and warehouses, remain attractive to investors. During the recent market downturn, investors holding these types of assets were less affected.
