The October report on the HCM City housing market released by DKRA Group showed that the apartment supply decreased slightly compared with October 2023.

There have been signs of recovery of market demand, and new projects are for sale in Binh Duong and Long An provinces.

DKRA Group reported that apartment primary prices continue to be high because of high input costs. The apartment prices of projects in HCM City’s neighboring provinces increased by 3-8 percent in October compared with products sold 3-6 months before.

In the secondary market, selling prices and liquidity recovered with transactions, reportedly mostly at projects which had red books (land-use right certificates), or projects to be handed over to buyers.

In HCM City, the apartment primary prices were between VND30 million and VND493 million per sq m. In Binh Duong, the figures were VND26-59 million per sq m, in Ba Ria-Vung Tau VND35-61 million, in Dong Nai VND33-41 million, and Long An VND21-29 million per sq m.

Analyzing people’s housing access capability, Savills Vietnam said in 2019-2023, the housing prices in HCM City increased by 3 percent per annum, equal to the personal income increase. However, the gap between housing prices and incomes has become wider, making it more difficult for people to own houses.

A report showed that 50,000 apartments are needed each year for middle-income earners and young families in HCM City.

The apartment projects launched in the HCM City market in the third quarter were mostly high-end and located in the eastern part of the city. This included the next phase of Eaton Park in Thu Duc City offered by Gamuda Land at VND140 million per sqm.

Masterise Home has also marketed two apartment blocks belonging to Masteri Grand View project, priced at VND100 million per sq m. This is the first multi-storey block of The Global City in Thu Duc.

In Vinhomes Grand Park, units in the next phase of The Opus One are being offered at VND100 million per sq m. After completing construction of five basements, King Crown Infinity has offered new products at VND100-125 million per sq m.

Where are the affordable apartments?

According to Giang Huynh from Savills Vietnam, HCM City is facing a housing shortage. In the very near future, HCMC will see an increase of high-end projects, while affordable housing supply is still needed.

Savills Vietnam believes that affordable housing is a potential market segment for investors as demand is always high. As demand is increasing and the supply of affordable houses is limited in HCM City, these products now can be found only in neighboring provinces.

With infrastructure being upgraded, Savills Vietnam predicts there will be 24,000 affordable apartments in neighboring provinces in the next three years. After Binh Duong, Long An offers an affordable housing supply.

Observers have noted that the western gateway part of HCM City is now bustling with the appearance of some affordable apartment projects.

NamLong Group is selling 500 apartments belonging to the third phase of EHome Southgate project in the 355 hectare Waterpoint new urban area. SeaHoldings Group has also marketed 2,000 apartments at Destino Centro project. Both projects have reasonable prices, just VND1 billion per apartment.

Tran Hien Phuong, CEO of SeaHoldings Group, said the real estate market in areas neighboring HCM City, including Long An, has become warmer.

In late October, the Conic Boulevard project in Binh Chanh district began to be distributed by Eximrs.

Supply goes up, but prices keep rising

Experts believe that since Covid-19, the last months of 2024 will be the most bustling time of the southern real estate market. In addition to existing projects, new products will be launched in different market segments.

According to the HCM City People’s Committee, the market is warming up, and local authorities are continuing to make efforts to remove legal bottlenecks to speed up housing projects.

However, the committee believes that recovery will be slow, with no breakthrough expected. Prices may increase slightly in some market segments because of land-price framework adjustments, but price fluctuations won’t be dramatic.

Affordable apartments are expected to be the market segment with the most potential, as supply has increased slowly and demand is high.

Anh Phuong