Apartment segment recovers in southern Vietnam, land plots sluggish

By Vu Pham, Minh Hue
Sat, May 11, 2024 | 8:01 am GMT+7

April saw marked improvement in the supply and absorption of apartments in Ho Chi Minh City surrounding areas, but trade in land plots remained sluggish, says a new report.

Prepared by property consultants DKRA Vietnam, the report says the apartment segment showed signs of bouncing back with new supplies increasing 3.8 times over March and 2.8 times over the same period in 2023.

The new supply included 1,597 units coming from one new project and different phases of six existing projects. Of these, 819 units were sold, equivalent to 51% of the figure in the same period last year.

Prospective customers study a model of the Phu Dong SkyOne project in Di An town, Binh Duong province, southern Vietnam. Photo by the Investor/Vu Pham.

Prospective customers study a model of the Phu Dong SkyOne project in Di An town, Binh Duong province, southern Vietnam. Photo by the Investor/Vu Pham.

New supply mainly came from HCMC and the provinces of Binh Duong and Long An. Binh Duong accounted for 80% of total new supply and 71% of new sales in the area, mostly from a project in Di An town.

Meanwhile the provinces of Dong Nai, Ba Ria-Vung Tau and Tay Ninh did not record any new supply for sale in April.

DKRA Vietnam said investors continued to offer quick payment discounts, payment term extensions and gifts to stimulate demand. "There was no great fluctuation in primary and secondary selling prices. Market liquidity came from projects with full legal status and rapid construction progress."

It noted that apartment prices in HCMC were still very high, with the lowest being VND50.8 million ($1,996) per square meter and the highest hitting VND337 million ($12,340).

In Binh Duong, the lowest price was VND30.8 million per sqm while the highest was nearly VND60 million. Long An saw more affordable prices, with lowest and highest prices of VND21.7 million and VND24.5 million, respectively.

In contrast to the recovery of the apartment segment, the land plot segment remained gloomy. New supply and sales in April continued to be low, plunging 71% and 97% respectively over the same period last year.

Four projects (one new and three existing projects) provided the market with 79 plots in April, but only eight were sold. The number of land plots in Binh Duong accounted for more than 50% of the total supply, followed by Tay Ninh (31.7%), HCMC (15.2%), and Long An (2.5%).

HCMC recorded lowest and highest land plot prices of VND33.6 million ($1,320) and VND57.5 million ($2,259), respectively. Corresponding figures were VND14.3 million and VND15.5 million in Binh Duong; and VND4.1 million and VND5.2 million in Tay Ninh. Long An reported average land plot prices of VND19.4 million per sqm.

The report said the land plot segment has remained gloomy since last year. One large firm in Long An said that over the last year, it had no new land plot project to sell. It only had plots from “old baskets”, but there were no buyers for these despite many incentives being offered.

Positive signs were seen in the townhouses and villas segment. New supply increased 3.6 times year-on-year and about 12.3 times over March, with Binh Duong accounting for 97% and the rest coming from HCMC.

Different phases of three existing projects provided the market with 184 units, of which 63 were sold. In this segment the lowest and highest prices in HCMC were VND63.2 billion ($2.48 million) and VND73.2 billion ($2.87 million), respectively. Corresponding figures in Binh Duong were VND3.3 billion and VND12.3 billion, respectively.

The DKRA Vietnam report said market demand had improved a lot since the beginning of the year, with Binh Duong recording about 95% of new transactions. It said the following months were likely to see supply and sales maintain positive growth in this segment.

Comments (0)
  • Read More
Sumitomo subsidiary acquires 49% stake in Vietnam’s top crop protection firm

Sumitomo subsidiary acquires 49% stake in Vietnam’s top crop protection firm

Summit Agro International Ltd., a member of Japanese conglomerate Sumitomo, has acquired a 49% stake in Hop Tri Investment Corporation, a leading crop protection firm in Vietnam.

Companies - Fri, November 22, 2024 | 8:25 pm GMT+7

E-wallets get thin as banking apps prosper in Vietnam

E-wallets get thin as banking apps prosper in Vietnam

E-wallets appear unable to compete strongly against online banking applications in Vietnam, several market observers say.

Banking - Fri, November 22, 2024 | 7:15 pm GMT+7

Use social media influencers in targeted manner for e-commerce success: Vietnam execs

Use social media influencers in targeted manner for e-commerce success: Vietnam execs

Vietnamese companies should use new generation influencers in a targeted manner, prioritizing specific market segments, standardizing quality and focusing on strong product categories to achieve e-commerce success, says Nguyen Ngoc Luan, CEO of Meet More Coffee.

Companies - Fri, November 22, 2024 | 4:26 pm GMT+7

VinFast’s parent, PV Power partner to speed up charging station expansion

VinFast’s parent, PV Power partner to speed up charging station expansion

Vietnamese private conglomerate Vingroup, the parent firm of electric vehicle manufacturer VinFast, and state-controlled PV Power have entered an agreement to develop charging stations across the country and promote rooftop solar installations.

Companies - Fri, November 22, 2024 | 4:11 pm GMT+7

Petrovietnam, Petronas to boost renewable energy cooperation

Petrovietnam, Petronas to boost renewable energy cooperation

Petrovietnam and Petronas, two state-owned oil & gas giants of Vietnam and Malaysia, will further cooperate in renewable energy, including exchange of information, knowledge, and experiences.

Energy - Fri, November 22, 2024 | 2:59 pm GMT+7

FTSE Vietnam ETF may heavily buy Vinhomes, sell Vingroup in upcoming reshuffle: broker

FTSE Vietnam ETF may heavily buy Vinhomes, sell Vingroup in upcoming reshuffle: broker

FTSE Vietnam ETF is forecast to strongly buy in several Vietnamese heavyweights such as Vinhomes, Hoa Phat, and Vietcombank in its upcoming portfolio reshuffle.

Finance - Fri, November 22, 2024 | 2:45 pm GMT+7

$681 mln central Vietnam urban area project eyed by Sun Group gets authorities' nod

$681 mln central Vietnam urban area project eyed by Sun Group gets authorities' nod

A VND17.3 trillion ($681 million) urban area project that is drawing the interest of major realty developer Sun Group has received an in-principle approval from Khanh Hoa province's administration.

Real Estate - Fri, November 22, 2024 | 1:53 pm GMT+7

Vietnam foreign ministry dismisses allegations of tightening visa rules for foreigners

Vietnam foreign ministry dismisses allegations of tightening visa rules for foreigners

Allegations of Vietnam tightening visa policies and control over foreigners are "baseless", Foreign Ministry spokeswoman Pham Thu Hang said Thursday.

Politics - Fri, November 22, 2024 | 11:29 am GMT+7

Thailand-invested food giant CP fined $31,000 for environmental violations

Thailand-invested food giant CP fined $31,000 for environmental violations

Vietnam’s southern province of Dong Nai has issued a fine of VND790 million ($31,080) to Thailand-invested C.P. Vietnam Corporation for violating environmental regulations.

Companies - Fri, November 22, 2024 | 10:48 am GMT+7

Vietnamese billionaire’s daughter spends $25 mln on Masan share purchases

Vietnamese billionaire’s daughter spends $25 mln on Masan share purchases

Nguyen Yen Linh, the daughter of chairman Nguyen Dang Quang of consumer goods giant Masan Group (HoSE: MSN), has purchased nearly 8.5 million MSN shares over the past three weeks, meeting 85% of her target.

Finance - Fri, November 22, 2024 | 10:27 am GMT+7

PYN Elite manager upbeat about Vietnam’s economy, stock market despite Trump uncertainty

PYN Elite manager upbeat about Vietnam’s economy, stock market despite Trump uncertainty

The Vietnamese economy will still fare well, and the local stock market will remain appealing despite the recent pullback following Donald Trump’s election win for a second term, said Petri Deryng, portfolio manager of Finland-based the PYN Elite fund.

Finance - Fri, November 22, 2024 | 8:25 am GMT+7

Central Vietnam province plans to build $2.4 bln LNG power plant from 2031

Central Vietnam province plans to build $2.4 bln LNG power plant from 2031

The 4,800-MW Chan May LNG power plant, with an investment of $2.4 billion, can be deployed in 2031-2035, according to Thua Thien Hue authorities.

Energy - Thu, November 21, 2024 | 10:41 pm GMT+7

Indonesia, France step up cooperation in economy, defence

Indonesia, France step up cooperation in economy, defence

Indonesian President Prabowo Subianto discussed economic and defence cooperation during a bilateral meeting on Tuesday with French President Emmanuel Macron on the sidelines of the G20 Summit in Rio de Janeiro, Brazil, Antara reported.

Southeast Asia - Thu, November 21, 2024 | 10:25 pm GMT+7

Thai economy to maintain upward momentum in 2025

Thai economy to maintain upward momentum in 2025

The National Economic and Social Development Council of Thailand (NESDC) expects the Thai economy to sustain its upward momentum in 2025 with a growth of 2.3-3.3% despite growing risks.

Southeast Asia - Thu, November 21, 2024 | 10:24 pm GMT+7

Former parliament chairman Vuong Dinh Hue warned for violations

Former parliament chairman Vuong Dinh Hue warned for violations

The Politburo, Vietnam's supreme decision making body, on Wednesday issued warnings to Vuong Dinh Hue, former Chairman of the National Assembly, and Nguyen Van The, former Minister of Transport, for violations while on duties.

Politics - Thu, November 21, 2024 | 10:10 pm GMT+7

Sumitomo insists on building LNG power plant in central Vietnam

Sumitomo insists on building LNG power plant in central Vietnam

Japanese trading house Sumitomo has been pushing for a liquefied natural gas (LNG)-fed power plant investment in Vietnam’s central province of Khanh Hoa.

Energy - Thu, November 21, 2024 | 8:53 pm GMT+7