The recent launch event for Phu Long’s Essensia Sky, a green and healthy apartment project in Ho Chi Minh City’s Nam district, surprised the market as 98% of the project’s apartments were completely absorbed. In a context where the real estate market has not yet flourished, this luxury project attracted nearly 1,000 attendees, indicating a positive demand and expectation for a new cycle in the upcoming period.
It is known that this apartment project is a rare primary supply in Ho Chi Minh City’s Nam district, especially during the Tet holiday season. With prices ranging from VND68-79 million/sqm and a comfortable payment policy, including quarterly installments of 5%, discounts of up to 6%, and bank support for loans of up to 70% of the contract value for up to 35 years, the project has attracted a significant amount of buyer interest.
Real estate demand increases during the Tet holiday season.
Construction on this project began in September 2024, and it is one of the few apartment projects in Ho Chi Minh City with a standard legal framework to be introduced to the market. Its location on Nguyen Huu Tho, a major artery in the city’s Nam district, provides easy access to the city center within 15 minutes and convenient travel to the Mekong Delta provinces, making it an attractive option.
While the developer has only introduced the project to the market, the positive response from buyers indicates that the demand for luxury apartments in Ho Chi Minh City remains strong, both for actual housing needs and investment purposes.
In fact, this is not the only luxury project in Ho Chi Minh City to create a positive impact in the last quarter of 2024. Previously, there was a “feverish” race for high-end apartments in the city’s East district, causing a stir in the real estate market. Projects such as Eaton Park (Gamuda Land), Masteri Grand View (Masterise Homes), Opus One (Vinhomes), and Opusk Thu Thiem (Son Kim Land) have prices ranging from VND72 to 300 million/sqm, but the impressive level of interest has surprised many.
Shortly after their announcement, these projects recorded an 80-90% “rap can” rate, referring to the number of successful bookings or down payments. Some latecomers even missed out on the opportunity to secure a unit. This indicates that demand is recovering, even as real estate prices reach new highs.
Unlike the bustling East district, the real estate market in the Nam district of Ho Chi Minh City has long been quiet, with only a few secondary properties available for sale in certain projects. Therefore, the absorption of 98% of the primary supply of Essensia Sky by Phu Long has “stirred up” the market in the area during the Tet holiday season. This is also a good sign for the energetic restart of both buyers and real estate businesses after a long period of market difficulties.
According to reports, from 2018 to 2024, the price of primary apartments in Ho Chi Minh City increased by approximately 100%, depending on the project and location. The most significant increase occurred between 2018 and 2020, with an average annual increase of 20-25% per project. The positioning of segments based on selling prices has also evolved with the continuous price fluctuations. Affordable apartments have moved into the mid-range segment, while mid-range apartments have become luxury, and luxury apartments have reached the ultra-luxury threshold.
Today, the market is witnessing a significant presence of high-end and ultra-luxury condominium products in Ho Chi Minh City’s real estate supply. The price level of luxury projects has undergone a remarkable transformation over the past six years. Despite the already high price levels, it is predicted that luxury apartments in Ho Chi Minh City will continue to increase by approximately 10% in the next three years. In the next 5-10 years, the price of luxury apartments in the city is not expected to fall below VND100 million/sqm.
According to Mr. Dinh Minh Tuan, Regional Director of Batdongsan.com.vn, with the current scarcity of new supply, products entering the market, despite high prices, will sell out. From an investor’s perspective, the most important factors for high-end and ultra-luxury real estate are attractive discounts and financing policies. During this period, favorable policies will result in stable demand; otherwise, liquidity will be challenging.
In the long term, Mr. Tuan believes that projects in well-connected transportation areas will have significant potential. The price appreciation potential of these projects will depend on the implementation of key infrastructure and the outstanding amenities they offer.
The Vietnam Real Estate Brokers Association (Vars) report indicates that projects launched in Q3 2024 and onwards have achieved good absorption rates. In the first nine months of 2024, the absorption rate was estimated at approximately 55%, equivalent to approximately 6,000 successfully traded products, with transactions mainly contributed by the apartment segment, accounting for over 80%.
Dr. Nguyen Van Dinh, Chairman of Vars, shared that the market demand has gradually improved and showed clear signs of recovery in Q3 2024, driven by new supply and information about enterprises restarting projects. In addition to the returning confidence of investors, the early effectiveness of the 2024 Land Law, 2023 Housing Law, and 2023 Real Estate Business Law, along with the maintenance of low-interest rates, positively impacted market demand.
According to experts, the real estate market in the South, particularly in Ho Chi Minh City, still has significant growth potential. Ho Chi Minh City remains the country’s economic center with a high urbanization rate, driving an increasing demand for housing.
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