## From Surfing Intentions to Reality of Loss-Cutting: The Story of Real Estate Investors in Binh Duong, Vietnam
From Surfing Intentions to Loss-Cutting Reality
The apartment market in the old Binh Duong area has been assessed as having the most abundant supply in the Southern region over the past few years. Prices have continuously escalated, from VND 30 million/m2 to VND 40-50 million/m2.
Relatively low prices and high rental demand are two advantages often used by brokers when consulting customers. However, in reality, many surf investors have had to sell off their properties, and some have even incurred losses of up to half a billion VND.
Ms. T.T.H.N, a resident of Dong Nai province, shared that at the beginning of 2024, with some available capital, she intended to invest in surfing apartments for profit. According to Ms. N., at that time, there was a shortage of mid-range apartment supply in Ho Chi Minh City, while the market in Binh Duong (old) was quite vibrant, so she decided to invest there.
Ms. N. said that at that time, many apartment projects were being sold in Binh Duong (old). Through interactions with real estate brokers, she was introduced to the fact that the prices there were lower than in Ho Chi Minh City, and the rental demand was high due to the nearby industrial parks.
Customers are inquiring about an apartment project in the old Binh Duong area. Photo: Gia Huy |
After considering several projects, Ms. N. decided to invest in the Astral City project (now renamed La Pura), formerly in Binh Duong and now in Binh Hoa ward, Ho Chi Minh City.
“The 62.5 sq. m apartment was priced at nearly VND 2.5 billion. Initially, I intended to surf for a few months. However, after making two payments totaling nearly VND 1.3 billion, I realized that this was not an easy task,” Ms. N. recounted.
From expecting a profit of a few dozen million, she had to sell at the contract price and then cut her losses by VND 100-300 million, but still, there were no takers. Many other investors in the project also sold at similar loss levels. Finally, to get out of the deal, Ms. N. accepted a loss of VND 650 million and sold the apartment in March 2025.
Recently, Mr. N.V.C, a broker specializing in apartment sales in the old Binh Duong area, shared that he had just helped a customer sell an apartment at The Felix project, located in Binh Hoa ward, Ho Chi Minh City, with a loss of VND 50 million.
According to Mr. C., the two-bedroom apartment was purchased for VND 2.4 billion. Due to financial difficulties, the owner wanted to sell quickly. With this loss, the apartment was sold within a few days.
“The market currently has many new projects with diverse price ranges. Some projects are almost completed but are still cheaper than The Felix. Many customers are selling at contract price,” said Mr. C.
‘Overeating’ Supply, Challenging Effective Investment
According to statistics from DKRA Group, in the second quarter of 2025, the primary apartment supply in Ho Chi Minh City and its vicinity reached more than 20,500 units, an increase of 40% compared to the same period last year. Ho Chi Minh City and the old Binh Duong area accounted for nearly 80% of the total supply.
The apartment market in the old Binh Duong area also shows signs of oversupply. In 2024, the apartment supply in this province reached nearly 10,000 units, accounting for 40% of the Southern region. Previously, in the period of 2019-2022, Binh Duong (old) recorded more than 45,000 apartments offered for sale.
In the third quarter of 2025, Mr. Vo Hong Thang, Investment Director of DKRA Group, forecasted that the apartment supply in Ho Chi Minh City (including the area merged from the old Binh Duong) could continue to fluctuate between 9,000 and 10,000 units, similar to the second quarter.
From an investment perspective, Avison Young argued that apartment investors in the old Binh Duong area would face challenges in terms of rental yield.
With primary prices ranging from VND 40-50 million/m2, the rental investment equation becomes less attractive when the rental price of 1-2 bedroom apartments in Di An and Thuan An is only VND 6-9 million/month. After deducting operating costs and loan interest, the rental yield is quite low, not enough to attract individual investors.
For buyers intending to occupy the apartments, the financial equation is a significant challenge. With prices ranging from VND 2.5-4 billion/unit, buyers need to carefully consider their income and borrowing capacity in the context of potential risks in interest rates.
“This makes the dream of owning a home in the old Binh Duong area no longer as easy as it was in the 2018-2020 period,” said Avison Young.
Anh Phuong
– 05:45 23/08/2025
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