In the August 2024 market newsletter, DKRA Group (DKRA Consulting) mentioned the slight recovery of the apartment segment in the Ho Chi Minh City area.
Primary apartment supply in Ho Chi Minh City and surrounding areas in August recorded a slight increase of 1% compared to the previous month, with projects mainly concentrated in Ho Chi Minh City and Binh Duong, accounting for 58% and 37% of the total primary supply in the market, respectively.
In Ho Chi Minh City, after a rather quiet period since the beginning of this year, in early September, many new projects in Thu Duc City are preparing to be announced to the market.
For example, the Foresta project, which includes a product line of apartments and townhouses by the joint venture Khang Dien and Kepple Land, is expected to launch products from the beginning of the fourth quarter of 2024, or nearly 500 apartments in the final phase of the MT Eastmask project, invested by Dien Phuc Thanh Company, will also be offered for sale during this time.
Notably, many real estate trading floors have recently started accepting refundable bookings for the luxury apartment segment of The Global City project, a scale of 27 luxury apartment towers with about 8,000 apartments, expected to launch in the fourth quarter of 2024 with an expected price of 100-150 million VND/m2.
It can be seen that the supply in the Southern market will increase in the coming time, but actual surveys show that the absorption level of the market is uneven, some areas and projects are well received, but there are also places where there are almost no sales.
Evidence from the reality of the apartment market in Ho Chi Minh City shows that most of the projects opened for sale in the past have had good liquidity and up to now, the apartment segment with full legal documents in the price range of under 50 million VND/m2 is almost "extinct".
According to data from DKRA Group, in August, demand in the Southern market increased, with primary consumption reaching nearly 800 units, up 36% compared to the previous month. However, most of the purchasing power was recorded from projects being sold in Binh Duong, accounting for 54% of total primary consumption in the whole market.
DKRA Consulting believes that with many projects in the communication phase preparing for sale, new supply in September and the fourth quarter of 2024 is expected to have clear changes.
However, output is still a concern when purchasing power is still quite reserved related to the selling price level that is increasingly out of reach for those with real needs. According to experts in the real estate sector, in the short term, primary real estate prices will hardly decrease, especially in the apartment segment.
Because in the context of the ever-increasing demand for real estate, especially investment demand, investors will prioritize the development of high-end segments to maximize profits when land funds are increasingly scarce, construction costs are increasing along with infrastructure and utilities being invested in with increasingly high quality.
At the same time, the real estate market is entering a new phase with a large selection. It can be said that only investors with good financial potential, strong existing capacity or advantages in creating land funds will continue to maintain the phenomenon of monopoly supply, large investors will continue to decide the market price, in a higher direction to maximize profits.
