In the report on the real estate market, housing in Vietnam in the first 9 months of 2024, the Vietnam Association of Realtors (VARS) said that the supply of housing in the provinces around Ho Chi Minh City reached about 11,000 products. The 9-month supply mostly came from the next phase of old projects, of which 69% were apartments, 24% were villas and townhouses.
In the third quarter of this year alone, the real estate supply in the provinces surrounding Ho Chi Minh City only reached 2,073 products, of which the housing supply in Ho Chi Minh City accounted for 70% of the total supply in the region.
The absorption rate of new housing supply in provinces around Ho Chi Minh City in the first 9 months reached about 55%, equivalent to about 6,000 products successfully traded.
Regarding the average selling price of project clusters (projects surveyed by VARS to conduct the report) in Ho Chi Minh City, it increased from VND 49.2 million/m2 to VND 64.2 million/m2, reflecting an increase of 30.6% compared to the end of 2023.
According to statistics from market research units, each year, Ho Chi Minh City needs about 50,000 more apartments to meet the housing needs of the people, of which 60-70% have the need to buy low-cost houses. Therefore, it is necessary to have housing development solutions that are suitable for financial capacity. Unfortunately, the market is seriously lacking in low-cost housing projects, making it difficult for many people to find a place to live.
According to some experts, the new land price list in the short term will increase a lot, which will have a mixed psychological impact, both positive and negative. In the context of increasingly narrowing land funds, in the coming time, investors who buy new land funds will have to pay compensation for site clearance, so the land price will increase and this cost will be included in the selling price, thereby increasing the cost of products.
Dr. Nguyen Duy Phuong - Investment Director of DG Capital - said that the market did not have to wait until the new land price list was issued for the price increase to be reflected, but the story of real estate product prices has been continuously increasing over the past time, even when the market faced liquidity difficulties.
The demand for housing is increasing, but it is very difficult to carry out projects at this time. Partly because it is difficult to find land to develop the project. The other part is because the time to complete the project's legal procedures is prolonged, while input costs such as construction materials, labor costs, loan interest, land prices, etc. are all increasing. Therefore, with the new land price list issued according to market prices, investment costs will become more and more expensive. Therefore, it is difficult to expect real estate prices to decrease, but only increase.
Addressing the issue of affordable housing requires a comprehensive approach that combines the strengths of both the public and private sectors. No single sector can fully address this challenge. In the context of limited state budgets and high interest rates, financing social housing projects is facing many difficulties. At the same time, the private sector is also facing inflationary pressure on input costs. Therefore, effective cooperation between the two parties becomes essential. Increasing construction density and rational planning will also play an important role in providing affordable housing solutions.
