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Why is there a mismatch between supply and demand in the real estate market?
For over two years, the Vietnamese real estate market has been stagnant, mainly due to three factors: tight cash flow, legal bottlenecks, and buyers’ wait-and-see mentality. According to Savills Vietnam, housing transactions in Hanoi and Ho Chi Minh City decreased by more than 50% in the first half of 2023, pushing the market into a gloomy state.
The real estate market is experiencing a mismatch between supply and demand (Illustration: Internet)
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Another cause is the mismatch in housing segments. According to the Vietnam Real Estate Brokers Association (VARS), the supply focuses on high-end products, large-value investments, and speculation. This has caused housing prices to rise, far exceeding the affordability of most people. Data from VARS shows that the proportion of affordable apartments (below VND 25 million/sq m) has decreased significantly, from 30% in 2019 to 6% in 2023. The proportion of mid-range apartments (VND 25-50 million/sq m) has also gradually decreased, while apartment prices in Ho Chi Minh City range from VND 60-90 million/sq m, making apartments priced below VND 3 billion almost non-existent.
Affordable housing – the solution to connecting supply and demand in the real estate market.
In this context, VARS believes that, along with social housing, affordable housing will be the main development trend in the real estate market in the near future, as it meets the actual needs of most people. However, developing this type of housing in the inner cities of large cities like Ho Chi Minh City is challenging due to limited land funds and high prices. Therefore, many investors have expanded to outlying areas such as Binh Duong, Dong Nai, and Long An, where prices range from VND 25-40 million/sq m.
In areas such as Thuan An and Di An, the eastern gateways to Ho Chi Minh City, with complete transportation infrastructure, real estate is attracting investment from large corporations.
Most recently, in early August 2024, the joint venture between Cosmos Initia (a member of Daiwa House Group), TT Capital, and Koterasu Group commenced construction of the TT AVIO apartment project in Di An. This is the first affordable housing project in the area that offers a Japanese-standard living environment. The project is built on an area of over 15,952 sq m, with nearly 2,000 apartments with an average area of less than 60 sq m and prices starting from only VND 1.23 billion per unit – the segment that is currently most welcomed by the market.
TT AVIO Project Perspective
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Not only is the price suitable for the majority of middle-income earners, but TT AVIO is also located in an advantageous position at the intersection of Di An, Thuan An, and Thu Duc City, benefiting from complete transportation infrastructure such as the My Phuoc – Tan Van expressway, DT743 connecting belt roads 2 and 3, Pham Van Dong boulevard, and the extended Metro lines 1 & 3,… From TT AVIO, residents can easily travel between Binh Duong and Ho Chi Minh City.
Despite the incredibly attractive price of only VND 1.23 billion/unit, TT AVIO offers a host of advantages that exceed customers’ expectations, with over 89 internal and external utilities, notably 8 clusters of high-end amenities rarely found in mid-range apartments. These include the Galaxy Pool complex, the Funky Town children’s playground, the Art Square, the Amazon Park for all ages, a sports and entertainment complex with table tennis, gym, and yoga, the Business Center with offices and co-working spaces, and the Chill Skyzone on the rooftop with Japanese gardens, outdoor yoga spaces, and BBQ areas. These amenities not only meet the recreational needs of the residents but also enhance the quality of life, promoting a healthy lifestyle that nurtures the physical, mental, and intellectual well-being of all family members.
A remarkable highlight of TT AVIO is the expanded homeownership opportunity with the exclusive privilege of “negotiated payment” for 300 units, a flexible method that helps “tailor” a financial plan suitable for each customer. With prices starting from only VND 1.23 billion per unit and a unique payment method, customers can easily assess their financial capacity to own the apartment of their dreams.
Perspective of TT AVIO’s Synchronized Internal Utility System
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The project is marketed and sold by DKRS, a leading reputable unit in the field of real estate distribution and marketing, ensuring optimal solutions and easy homeownership opportunities for customers.
In the coming time, it is forecasted that housing prices will increase when the Land and Housing Laws (amended) take effect. Affordable housing is expected to resolve the mismatch between supply and demand, meet the needs of middle-income earners, help stabilize prices, and promote the sustainable development of the market.
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TT AVIO offers attractive prices starting from only VND 1.23 billion/unit. Especially for 300 units, customers will have the privilege of “negotiated payment”. Investment & Development Joint Venture: Cosmos Itinia – TT Capital – Koterasu Group Marketing & Sales: DKRS Hotline: 0908 16 38 68 Website: ttavio.vn |
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