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
Q3 earnings of Vietnam’s listed firms up 21.6%: FiinGroup

Q3 earnings of Vietnam’s listed firms up 21.6%: FiinGroup

Net profits of listed companies in Vietnam increased 21.6% year-on-year in the third quarter of this year, maintaining a stable growth rate since the start of this year, according to local financial data provider FiinGroup.

Finance - Mon, November 4, 2024 | 9:31 am GMT+7

Thailand SCG’s revenue in Vietnam up 15% to $1.1 bln in Jan-Sept

Thailand SCG’s revenue in Vietnam up 15% to $1.1 bln in Jan-Sept

Thailand’s Siam Cement Group (SCG) recorded a revenue of THB36.71 billion ($1.08 billion) in Vietnam in the first nine months of this year, up 14.7% year-on-year.

Companies - Mon, November 4, 2024 | 8:00 am GMT+7

Nghiem Xuan Thanh appointed Party chief of Khanh Hoa province

Nghiem Xuan Thanh appointed Party chief of Khanh Hoa province

Nghiem Xuan Thanh, Party chief of Hau Giang province, was appointed by the Politburo, the country’s supreme decision-making body, to be Khanh Hoa province’s Party chief for the 2020-2025 term.

Politics - Sun, November 3, 2024 | 7:45 pm GMT+7

Thailand seeks FTA negotiations with Eurasian Economic Union

Thailand seeks FTA negotiations with Eurasian Economic Union

Thailand is holding talks with Russia to expedite negotiations for a free trade agreement (FTA) with the Eurasian Economic Union (EAEU).

Southeast Asia - Sun, November 3, 2024 | 7:20 pm GMT+7

Indonesia attracts foreign investment in technology sector

Indonesia attracts foreign investment in technology sector

As many as 19 Australian companies have expressed an interest in investing in Indonesia's technology sector, Communication and Digital Affairs Minister Meutya Hafid said on Thursday.

Southeast Asia - Sun, November 3, 2024 | 7:18 pm GMT+7

Robots work hard, don’t argue: Viettel exec counsels effective use of technology

Robots work hard, don’t argue: Viettel exec counsels effective use of technology

Small businesses in logistics should look to use existing tools, software and technology solutions effectively, says Dinh Thanh Son, deputy CEO of Viettel Post.

Companies - Sun, November 3, 2024 | 4:30 pm GMT+7

Vietnamese multi-sector group Masan uses AI to forecast product sales: executive

Vietnamese multi-sector group Masan uses AI to forecast product sales: executive

AI has helped Masan Group forecast the number of items likely to be sold during peak season based on available data and to optimize product placement, says An Luong, head of the corporation’s artificial intelligence & data science division.

Companies - Sun, November 3, 2024 | 2:51 pm GMT+7

Vietnam needs large, specialized logistics centers to compete better: official

Vietnam needs large, specialized logistics centers to compete better: official

Vietnam needs large-scale, specialized logistics centers that will enable greater competitiveness of local economies and enterprises, says Tran Thanh Hai, deputy head of the Ministry of Industry and Trade's agency of foreign trade.

Economy - Sun, November 3, 2024 | 11:00 am GMT+7

Vietnam manufacturing sector sees 35% increase in Q3 job orders: Adecco

Vietnam manufacturing sector sees 35% increase in Q3 job orders: Adecco

Vietnam’s manufacturing and sourcing sectors saw a substantial 35% year-on-year increase and a 52% quarter-on-quarter increase in Q3/2024 job orders, global workforce solutions provider Adecco said in a reseach report released Thursday.

Economy - Sun, November 3, 2024 | 9:00 am GMT+7

Construction majors to continue capitalizing on public investment projects

Construction majors to continue capitalizing on public investment projects

Vietnamese construction giants are expected to continue capitalizing on public investment projects for the remainder of this year after delivering strong performances in the third quarter, analysts say.

Companies - Sun, November 3, 2024 | 8:00 am GMT+7

Former Government Office chairman receives $7,900 bribe from property project

Former Government Office chairman receives $7,900 bribe from property project

Mai Tien Dung, former Minister-Government Office Chairman, received a bribe worth VND200 million ($7,900) from Nguyen Cao Tri, owner of the Dai Ninh eco-resort and urban area project in Lam Dong province.

Society - Sat, November 2, 2024 | 9:13 pm GMT+7

Thai food giant CP enters public-private partnership to promote food system transformation

Thai food giant CP enters public-private partnership to promote food system transformation

Thai-invested C.P. Vietnam Livestock JSC and the Partnership for Sustainable Agriculture Vietnam (PSAV) signed a memorandum of understanding Friday on working together to advance sustainable agriculture in the country.

Companies - Sat, November 2, 2024 | 7:16 pm GMT+7

Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year

Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year

Vietnam’s central province of Quang Ngai will work with the investor to have construction of VSIP II Quang Ngai, a facility based on the Vietnam-Singapore Industrial Park (VSIP) model, begin in August 2025.

Industrial real estate - Sat, November 2, 2024 | 3:47 pm GMT+7

Vietnam likely to grow 6.5% in 2024-2025: VinaCapital

Vietnam likely to grow 6.5% in 2024-2025: VinaCapital

VinaCapital, among the biggest foreign-run asset managers in Vietnam, has forecast the country’s economy to achieve 6.5% growth in both 2024 and 2025, with the composition of the expansion to change to more domestically driven factors next year.

Economy - Sat, November 2, 2024 | 2:00 pm GMT+7

Major Vietnamese developer Novaland appoints new CEO

Major Vietnamese developer Novaland appoints new CEO

Duong Van Bac, who joined Novaland as chief financial officer in August 2023, has been appointed general director, starting Friday.

Companies - Sat, November 2, 2024 | 10:24 am GMT+7

Vietnamese conglomerate Bamboo Capital posts 36-fold profit growth in Q3

Vietnamese conglomerate Bamboo Capital posts 36-fold profit growth in Q3

Ho Chi Minh City-based Bamboo Capital Group recorded an after-tax profit of VND331.2 billion ($13.1 million) in the third quarter of 2024, an astounding 36-fold expansion year-on-year.

Southeast Asia - Sat, November 2, 2024 | 9:41 am GMT+7