Ho Chi Minh City real estate market had a spectacular breakthrough in 2024 compared to 2023.
According to data from the Ho Chi Minh City Real Estate Association (HoREA), entering the first quarter of 2024, the market began to recover. Although the figures from HoREA showed that it was still negative 0.5%, compared to the same quarter of 2023, the market increased by 15.7%.
This recovery comes from the fact that major investors such as Vingroup, Masterise Homes, Gamuda Land… have started to launch products again.
In the first 6 months of 2024, the market grew positively by 2.94%. This is also the time of strong recovery when many projects handed over houses to customers as well as the number of transactions in the projects appeared.
Closing the first 9 months of 2024, the market continued to grow with a positive 6.7%, reflected in the 9-month real estate revenue of enterprises reaching 199,155 billion VND, accounting for 60.3% of total revenue in other business service sectors of Ho Chi Minh City.
And at the 11-month milestone in 2024, the market grew by over 9%. However, this was also the period when the market showed a huge imbalance.
"This is the first time the high-end housing segment has dominated the entire real estate market in Ho Chi Minh City and at present, there is no longer a supply of new mid-range and affordable housing in commercial housing projects. This further distorts the housing product structure in the city's real estate market, failing to meet the real housing needs of the majority of middle-income and low-income urban people, and the market is developing unsustainably, unsafely and unhealthy," said Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association.
CBRE Vietnam said that in 2025, the HCMC market is expected to have only about 9,000 new apartments, increasing to 11,000 units in 2026. In the short term, housing prices are unlikely to decrease, even if supply increases.
In the affordable segment, supply is still seriously lacking, putting great pressure on people's housing needs. This situation is especially evident in Ho Chi Minh City, where infrastructure has not improved much and land prices in central areas have increased.
It is noteworthy that the psychology of real estate investors has recovered after a long period of being affected by economic and market instability. Investors are no longer too hesitant, but have begun to implement strategies to find new opportunities in potential segments and projects with real value.
Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association assessed that the consensus and joint efforts of relevant parties to remove legal obstacles to the project will help unblock the market and increase supply.
However, the number of projects in the southern localities is still high. Therefore, departments and branches in the localities need to quickly eliminate overlaps and conflicts between legal documents, speed up investment and construction progress... to promote investment activities in their localities.
