At the event “Overview of the Vietnamese Real Estate Market in 2024 with a Focus on Binh Duong”, Dr. Can Van Luc shared his insights on the recently passed laws and their positive impact on the real estate market. He believes that these laws will foster a safer, healthier, and more sustainable environment for the industry.
Regarding price levels, Dr. Luc acknowledged the recent increases and highlighted a crucial aspect of the new land law: the annual land price list, which will better reflect market prices (ranging from 80-85% of market value). Ho Chi Minh City is also adjusting its land price framework to align closer with market rates, a move that will benefit some while disadvantaging others, but ultimately improving the market overall.
The expert also pointed out the current attractive lending interest rates and the recent improvements in legal procedures, with Ho Chi Minh City resolving 36% of issues and Hanoi addressing 45-50%. He concluded that now is an opportune time for investments, but further research is needed to identify the right locations.
Sharing this sentiment, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, stated that the real estate market has overcome its most challenging period. The three laws related to the industry are being well-received by buyers, tenants, brokers, trading floors, and investors.
Source: Batdongsan.com.vn
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Mr. Quoc Anh predicted that the market in 2024 would witness enhanced transparency thanks to legal changes. He also anticipated improvements in the supply of social housing, supported by new preferential policies and subsidies.
Additionally, while prices have remained high, the absorption rate has been encouraging. In Hanoi, prices ranged from VND 45-90 million per square meter, while in Ho Chi Minh City, they averaged VND 45-130 million per square meter. New project launches achieved absorption rates ranging from a decent 30-60% to an impressive >80%.
Source: Batdongsan.com.vn
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In the first nine months of 2024, there was an overall improvement in the level of interest and transactions for detached houses and land plots. However, this progress was localized to certain areas, particularly in the northern provinces.
Specifically, from the first quarter of 2021 to the third quarter of 2024, the price of detached houses in the north increased from VND 95 million to VND 173 million per square meter, while land plot prices rose from VND 27 million to VND 46 million per square meter. In contrast, the southern region experienced less significant fluctuations, with detached house prices increasing from VND 94 million to VND 106 million per square meter and land plot prices seeing a slight rise from VND 13 million to VND 17 million per square meter.
The market for detached houses and land plots has shown positive signs, particularly in Hung Yen province.
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The province neighboring Ho Chi Minh City has more room for growth
In the southern market, Binh Duong province stood out with significant growth in interest and stable prices. It is expected to witness a 32% year-over-year increase in real estate interest during the third quarter of 2024. Meanwhile, other localities like Long An, Ba Ria-Vung Tau, and Dong Nai are projected to see increases ranging from 17% to 22%.
Binh Duong witnessed a significant rise in real estate interest. Source: Batdongsan.com.vn
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In Binh Duong, condominiums, both for sale and rent, attracted the most attention, especially in areas close to Ho Chi Minh City. Specifically, several localities in Binh Duong, such as Di An, Thu Dau Mot, and Bau Bang, are expected to see increases in condominium interest during the third quarter of 2024, ranging from 20%, 11%, and 10%, respectively, compared to the previous quarter.
Mr. Dinh Minh Tuan, Southern Regional Director of Batdongsan.com.vn, attributed the province’s real estate market growth to various factors, including genuine housing demand. Binh Duong also has the second-highest immigration rate in the country, at over 26%. Additionally, its competitive price levels compared to Ho Chi Minh City’s center, its strategic location as a gateway for trade, and its status as a leading industrial hub in Vietnam contribute to its appeal.
“The turning point occurs earlier in major cities, but the general trend will eventually reach the provinces. Furthermore, while northern funds are currently concentrated in Hanoi, they will soon flow into Ho Chi Minh City. Given the limited supply in the city, these funds may enter the Binh Duong market earlier, as this area is already close to Ho Chi Minh City,” Mr. Tuan remarked.
With these advantages, the real estate interest in Binh Duong primarily stems from local and neighboring residents.
Binh Duong is the closest province to Ho Chi Minh City and offers notable amenities compared to other neighboring provinces. Source: Batdongsan.com.vn
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Binh Duong’s infrastructure advantages are evident, with its urbanization rate reaching 84% by the end of 2022, second only to Da Nang’s 88%, according to data from the Ministry of Construction. The province is expected to benefit from various supportive policies in the future, both general and specific to the real estate sector.
Batdongsan.com.vn’s data reveals that Binh Duong consistently maintained higher levels of property listings for sale and rent during the first eight months of 2024 compared to other provinces surrounding Ho Chi Minh City, including Dong Nai, Long An, Tay Ninh, Ba Ria – Vung Tau, and Binh Phuoc.
This indicates that Binh Duong’s real estate supply significantly outperforms that of its regional peers. The province is anticipated to introduce new projects from reputable developers, addressing the shortage of supply in the south. Moreover, Binh Duong’s property prices are competitive compared to Ho Chi Minh City and its neighboring provinces.
Source: Batdongsan.com.vn
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