The market is still "thirsty" for new housing supply
According to a recently released report by CBRE, in the third quarter of 2024, the housing market in Ho Chi Minh City will have only 127 new apartments for sale, all from the next phase of projects that have been opened for sale and are located in districts far from the city center. In addition, 300 apartments from old projects with legal problems that have been temporarily suspended for sale in the past 1-2 years in Thu Duc City and District 7 are now being resold, and about 2,700 apartments that have not been officially opened for sale have begun accepting reservations. "The supply of apartments has not shown signs of improvement even though demand has gradually become positive," said a representative of CBRE.
Also according to CBRE, by the end of the third quarter, the market will have a number of projects with legal problems previously located in Binh Thanh and Thu Duc City that will restart after being resolved and are expected to officially open for sale next year. This is a positive sign for the progress of legal resolution for real estate projects in Ho Chi Minh City, since the number of newly licensed projects in the city has decreased sharply since 2019.
According to the Ho Chi Minh City Real Estate Association (HoREA), there are currently 148 projects that are stuck with legal conditions at all three levels, so they cannot be implemented. First, they are stuck with some provisions of the laws. Second, they are stuck with some provisions of sub-law documents, typically the obstacles and bottlenecks in specific land valuation work, mainly the application of the surplus method to calculate land use fees and land rents, causing many project investors to be unable to fulfill their financial obligations to the State and homebuyers to not be granted pink books. Finally, they are stuck in implementation when some legal provisions are not specific or do not ensure consistency and uniformity.
In fact, in the past 3 years, licensing has been difficult, so Ho Chi Minh City has very few new projects implemented. For example, in the second quarter of 2024, the Ministry of Construction's report said that the entire South had only 1 project licensed for implementation, much lower than the number of 9 projects each in the North and Central regions. This is the reason why investors and customers with real estate needs have difficulty accessing primary sources of goods, having to buy secondary or switch to projects that have been exploited for many years.
Customers prioritize projects with complete legal procedures
According to Savills Vietnam, current demand is mainly focused on projects with clear legal status, reputable investors, and guaranteed construction progress.
As a rare project in Ho Chi Minh City, especially in the South, which was just started in early September, Essensia Sky has become a name that many investors and real buyers are looking forward to. After receiving a construction permit and officially starting construction, the project is being constructed quickly towards the goal of completion in 2026, bringing to the market 424 apartments according to green - health criteria.
Essensia Sky is located in the Essensia Nam Saigon complex of Dragon City urban area at the southern gateway of Ho Chi Minh City, invested by Phu Long, a company known as one of the leading urban developers in Vietnam with a series of projects across the country. This is also a guarantee that Essensia Sky ensures legal conditions, construction progress... bringing peace of mind to buyers.
“During the time of completing the legal procedures, Phu Long has continuously improved the project's standard framework, from space design, technology conversion, construction quality to upgrading the physical and mental health care utility system... This will satisfy the high-end requirements of customers for a green - healthy apartment", the investor representative shared.
The urban area is located on the frontage of Nguyen Huu Tho Street - a 60m wide road, planned for two-way traffic with 4 lanes, 16km long, running straight through Nguyen Van Linh Avenue, through Nha Be to Hiep Phuoc Industrial Park. This is considered a very important section in the North - South traffic axis of Ho Chi Minh City, connecting the Western provinces with the city and connecting to the international road across Asia.
This location also makes it convenient to travel to District 1, District 4 and District 7. From here it takes 5 minutes to Phu My Hung center, 15 minutes to Ho Chi Minh City center, 7 minutes to Hiep Phuoc industrial park. Essensia Sky is easily connected to external facilities in the South Saigon area, from schools, hospitals to entertainment centers.
Travel time will be shortened further as infrastructure projects in the South continue to be completed. Most recently, a branch of the Nguyen Van Linh – Nguyen Huu Tho tunnel (District 7) has just been opened to traffic. In particular, Nguyen Huu Tho Street also has metro line No. 4 which is about to start construction.
Experts assess that in the context of scarce supply, projects with location advantages and especially guaranteed by investor reputation and legal assurance such as Essensia Sky will attract demand, thereby contributing to improving the market situation.
