The report on the real estate market in Ho Chi Minh City and surrounding areas recently released by DKRA Consulting shows that in October 2024, the primary market had 110 projects with a total supply of 12,599 units, down 1% over the same period, and the consumption reached 1,571 units, up 93% over the same period.
The market shows signs of recovery, but new projects are only being launched for sale in Binh Duong and Long An.
Primary selling prices continue to remain high due to pressure from input costs. Some projects in provinces bordering Ho Chi Minh City recorded an increase of 3-8% compared to the previous basket of products opened for sale 3-6 months apart.
Secondary market prices and liquidity continue to recover, with transactions concentrated in projects that have certificates or are in the process of preparing to hand over houses.
In November, there were 113 projects in the primary market with a total supply of 13,681 units, up 5.4% year-on-year, and sales volume reached 2,011 units, double that of the same period.
Regarding the selling price of primary apartments, in Ho Chi Minh City, the highest selling price is up to 493 million VND/m2, the lowest is 37 million VND/m2; in Binh Duong, the highest selling price is 60 million VND/m2, the lowest is 39 million VND/m2; in Ba Ria - Vung Tau, the highest selling price is 61 million VND/m2, the lowest is 35 million VND/m2; in Dong Nai, the highest selling price is 41 million VND/m2, the lowest is 33 million VND/m2; in Long An, the highest selling price is 29 million VND/m2, the lowest is 21 million VND/m2.
According to analysts, the real estate market in general and the South in particular are much more positive than before, although not as expected. This positivity is reflected in the number of new supply improved compared to the same period in 2023.
One positive news for the real estate supply in Ho Chi Minh City is that the work of removing legal obstacles for the project is being promoted at a rapid pace.
According to information from the Ho Chi Minh City People's Committee, the city is monitoring and resolving 64 projects. In the past 11 months, 8 projects have been completely resolved, 20 projects have been partially resolved, and the rest are still being resolved.
The city’s leaders also acknowledged that the projects are facing many problems, including problems with planning, land procedures, financial obligations, contractual relationships, etc. The city will focus on resolving these problems, and this will be one of the solutions to boost the real estate market.
Experts assess this as a good signal that will pave the way for remaining stuck projects to continue to be resolved, helping purchasing power improve even though real estate prices this year have increased compared to last year.
Mr. Vo Hong Thang, Investment Director of DKRA Group, said that the overall demand showed signs of recovery, doubling compared to the same period last year. Most of the transactions were concentrated in new projects that were launched for sale in Ho Chi Minh City this month.
Notably, Mr. Thang pointed out that the Class A apartment segment is leading, accounting for 47.7% of the primary supply in the entire market. The projects are concentrated in the East of Ho Chi Minh City with the selling price level anchored at a high level, commonly fluctuating from 85-130 million VND/m2.
In the last month of the year, Mr. Thang predicted that new supply to the market is expected to continue to have positive changes.
However, the supply still mainly comes from class A and luxury projects in Ho Chi Minh City. Class B and C segments are concentrated in provincial markets such as Binh Duong, Long An and Ba Ria - Vung Tau.
