Apartment supplies in southern Vietnam lowest in 5 years

By Vu Pham, Minh Hue
Tue, January 9, 2024 | 2:01 pm GMT+7

Apartment supplies in Ho Chi Minh City and surrounding areas in 2023 were at their lowest level in the past five years, reported realty services firm DKRA.

In the primary market, only 126 apartment projects, including 10 new ones, were offered for sale with about 22,071 units, down 32% compared to 2022, DKRA said in its report on the 2023 real estate market in HCMC and its vicinity.

New supply mainly arrived in the Eastern area of Ho Chi Minh City (64%), Binh Duong province (31%), and Dong Nai, Long An and Ba Ria - Vung Tau (the rest). Notably, no new projects were put on sale in Tay Ninh province.

 An apartment project under construction in Ho Chi Minh City, southern Vietnam. Photo by The Investor/Vu Pham.

An apartment project under construction in Ho Chi Minh City, southern Vietnam. Photo by The Investor/Vu Pham.

Transactions were also lower than the 2020-2022 period, reaching 9,664 units, equal to 44% of the supply in the primary market and down 56% year-on-year.

Mid-end projects with prices ranging from VND40-55 million ($1,640-2,255) per square meter, full legal status, rapid construction progress, and good connectivity saw good sales. Notably, demand recorded a slight increase in the second half of 2023 but the absorption rate was at the lowest level compared to the average of the 2020-2022 period, reaching only about 68-87%.

The respective highest and lowest selling prices were VND425 million ($17,428) and VND30 million ($1,230) per square meter in HCMC; VND59 million ($2,420) and VND27 million ($1,107) in Binh Duong; VND51 million ($2,090) and VND35 million ($1,435) in Ba Ria - Vung Tau; VND35 million and VND31 million in Dong Nai; and VND24 million ($986) and VND21 million in Long An.

DKRA said the 2023 selling price level in the primary market did not see many changes compared to the start of the year as investors applied policies such as discounts for quick payment, and principal and interest grace periods for borrowers to stimulate demand. Meanwhile, liquidity in the secondary market remained low, with prices decreasing about 3-8% from the end of 2022.

Vo Hong Thang, R&D director at DKRA, said the real estate market has been struggling for three years, with shrinking supply and demand. Many opinions said that the property market is likely to continue gloomy in 2024.

However, this expert held that the end of 2024 could be the beginning of the next growth cycle of the market. The residential housing segment is expected to lead the market's recovery, especially projects in big city centers and surrounding areas with well-connected transport systems.

“This year, the supply of new apartments will increase compared to 2023, at about 12,000-15,000 units, including 8,000-10,000 in HCMC, 4,000-6,000 in Binh Duong, and 300-500 each in Dong Nai and Ba Ria-Vung Tau. Other provinces and cities will continue to face new supply scarcity,” he forecast.

Market supply and demand are expected to improve from the third quarter when policies are sufficiently "absorbed," helping to remove legal obstacles, as well as when economic recovery prospects become clearer. The high-end apartment segment is projected to maintain its dominant position in HCMC, while mid-end and affordable apartments will account for a large proportion in Binh Duong and neighboring provinces.

Comments (0)
  • Read More
Vietnam-S Korea $77 mln industrial park completes 65% work

Vietnam-S Korea $77 mln industrial park completes 65% work

Sach (Clean) Industrial Park in the northern province of Hung Yen, a $77-million facility invested by Vietnamese and South Korean businesses, has completed full site clearance and 65% of its construction work.

Industrial real estate - Mon, November 25, 2024 | 3:32 pm GMT+7

HCMC Ring Road 4’s first phase to cost $4.83 bln

HCMC Ring Road 4’s first phase to cost $4.83 bln

Total investment for the first phase of Ho Chi Minh City’s Ring Road 4 project is estimated at VND122.77 trillion ($4.83 billion) in a proposal submitted by the city administration to the government.

Investing - Mon, November 25, 2024 | 3:24 pm GMT+7

Foreign chambers of commerce in Vietnam gather to address business challenges

Foreign chambers of commerce in Vietnam gather to address business challenges

Four foreign business associations gathered last week for their monthly meeting to address pressing business challenges in Vietnam.

Companies - Mon, November 25, 2024 | 2:08 pm GMT+7

Thai food giant Charoen Pokphand earns $2.7 bln in Jan-Sept revenue from Vietnam

Thai food giant Charoen Pokphand earns $2.7 bln in Jan-Sept revenue from Vietnam

Thailand’s Charoen Pokphand Foods Public Company Limited (CPF) recorded revenue of THB92,210 million ($2.67 billion) from its Vietnam operation in the first nine months of this year, up 5% year-on-year.

Companies - Mon, November 25, 2024 | 10:35 am GMT+7

Vietnam construction machinery distributor 911 Group has new leader after chair’s death

Vietnam construction machinery distributor 911 Group has new leader after chair’s death

Hanoi-based 911 Group JSC has elected Nguyen Thi Thom as its new chairperson after chairman Luu Dinh Tuan unexpectedly died one day before the firm’s EGM on November 23.

Companies - Mon, November 25, 2024 | 9:37 am GMT+7

Vietnam credits nearly double deposits, pushing up interest rates

Vietnam credits nearly double deposits, pushing up interest rates

Vietnam’s credit expansion has been nearly double deposit expansion, creating pressure on its banking system's liquidity as the year is coming to an end.

Banking - Mon, November 25, 2024 | 8:17 am GMT+7

New mindset key to resolving institutional bottlenecks, promote growth: economist

New mindset key to resolving institutional bottlenecks, promote growth: economist

Moving from a mindset of control to that of promoting growth is key to clear four institutional bottlenecks in the way of national development, says Dr. Nguyen Dinh Cung, former director of the Central Institute for Economic Management (CIEM).

Opinion - Sun, November 24, 2024 | 3:30 pm GMT+7

Low production costs, tax benefits give Chinese goods price advantage in Vietnam

Low production costs, tax benefits give Chinese goods price advantage in Vietnam

Chinese goods entering Vietnam are often cheaper than local products due to low production costs, taxation benefits and shipping subsidies by manufacturers, says Nguyen Thanh Trung, director of Logistics Technology Solutions Company Limited (LTS).

Companies - Sun, November 24, 2024 | 2:00 pm GMT+7

Thailand’s food trade to top THB700 billion next year

Thailand’s food trade to top THB700 billion next year

The private sector is set to propel Thailand towards becoming a global food hub by 2026, with the value of the nation's food trade expected to surpass THB700 billion ($20 billion) next year.

Southeast Asia - Sun, November 24, 2024 | 10:22 am GMT+7

Indonesia plans to cut coal use to 33% of energy mix

Indonesia plans to cut coal use to 33% of energy mix

The Indonesian Government plans to slash the share of coal-fired power generation in the country’s energy mix to just 33%, while increasing the contribution of renewables to 42% by the end of 2040.

Southeast Asia - Sun, November 24, 2024 | 10:19 am GMT+7

Thai Government approves economic stimulus plan

Thai Government approves economic stimulus plan

The Thai Government’s economic stimulus policy committee led by Prime Minister Paetongtarn Shinawatra has approved a five-point plan to boost national economy in both short-and long-terms, the Government House said on Thursday.

Southeast Asia - Sun, November 24, 2024 | 10:16 am GMT+7

Singapore raises forecast for 2024 economic growth to around 3.5%

Singapore raises forecast for 2024 economic growth to around 3.5%

With economic growth in the third quarter of this year exceeding the projected rate, Singapore has raised its growth forecast for the whole year 2024 to around 3.5%.

Southeast Asia - Sun, November 24, 2024 | 10:14 am GMT+7

British oil giant invests in $7 billion gas project in Indonesia

British oil giant invests in $7 billion gas project in Indonesia

UK oil giant BP announced a joint $7 billion project with its partners to exploit nearly 85 billion cubic meters of gas in Tangguh, West Papua province of Indonesia.

Southeast Asia - Sun, November 24, 2024 | 10:12 am GMT+7

Boom expectant securities firms rush to hike capital base

Boom expectant securities firms rush to hike capital base

Many Vietnamese securities companies are rushing to increase their charter capital, anticipating a promising long-term outlook for the stock market.

Finance - Sun, November 24, 2024 | 10:00 am GMT+7

Vietnam sees October surge in car imports from Japan

Vietnam sees October surge in car imports from Japan

Vietnam saw a sharp rise in car imports from Japan in October, particularly in the segment with nine seats or fewer, according to the General Department of Customs.

Economy - Sun, November 24, 2024 | 9:00 am GMT+7

Vietnam pharma firms optimistic about 2025 prospects despite lingering challenges

Vietnam pharma firms optimistic about 2025 prospects despite lingering challenges

A majority of Vietnamese pharmaceutical firms are optimistic about 2025 market prospects despite challenges facing the healthcare and medicine sectors, according to a survey conducted by Vietnam Report JSC.

Economy - Sun, November 24, 2024 | 8:00 am GMT+7