According to data from the OneHousing Center for Market Research and Customer Insights, the supply of newly opened apartments in Ho Chi Minh City in the third quarter of 2024 recorded the lowest number in the past 5 years with 125 units, down 89% compared to the previous quarter. The main reason was identified as prolonged legal problems, affecting the progress of new projects.
In terms of sales, most of the projects with remaining inventory for sale had positive sales, recording 1,280 transactions in Q3/2024, down 25% compared to the previous quarter.
The lack of new supply and the existing supply being mainly high-end and luxury projects have pushed the average selling price of the entire Ho Chi Minh City market to continue to increase, reaching VND 80.2 million/m2 (excluding VAT and maintenance fee), up 5% compared to the second quarter of 2024.
The limited choice has forced homebuyers and investors to focus on only a few large projects with abundant apartments such as Vinhomes Grand Park. Therefore, the consumption of apartments in the Ho Chi Minh City market is mainly concentrated in the East.
Mr. Tran Minh Tien - Director of OneHousing Customer Research and Insight Center predicts that in the fourth quarter of 2024, the supply of the apartment market in Ho Chi Minh City will be significantly improved when a series of projects begin to be deployed for customers to book in the third and fourth quarters of 2024, such as the high-rise project The Global City of the investor Masterise Homes. Based on the number of booked apartments recorded, the southern focal market is expected to begin to recover consumption and achieve growth in the last months of 2024.
After the revised real estate laws came into effect in August 2024, old projects have had their legal problems cleared and have begun implementing their sales plans in the last quarter of 2024. This shows that the positive changes that the revised laws have "really come to life".
It is forecasted that new supply in Ho Chi Minh City in 2025 will nearly double compared to 2024, about 12,000 units. However, newly opened projects are mainly in the high-end and luxury segments, the expected price of projects planned to launch in the near future are all over 100 million VND/m2.
Commenting on the Ho Chi Minh City market, Mr. Tran Minh Tien - Director of OneHousing Customer Research and Understanding Center said: "The Ho Chi Minh City apartment market is gradually escaping the stagnant period and is ready to welcome new waves of growth. In particular, the East - Thu Duc City with a large land fund and increasingly complete infrastructure is attracting the attention of many famous investors.
The large-scale projects being implemented will create a completely new look for the area. Thu Duc City will become the center of the real estate market in Ho Chi Minh City in the near future. At that time, this will be a "fertile" land for investors and home buyers to come to," Mr. Tien added.
