Gloomy atmosphere overwhelms southern Vietnam property market

By Vu Pham, Huong Dung
Tue, August 16, 2022 | 1:01 pm GMT+7

All segments in southern Vietnam's real estate market, from land plots and apartments to townhouses and villas, are gloomy as both supply and consumption are at very low levels.

Customers are mostly taking a wait-and-see approach.

The price of Grade A apartments in HCMC in July 2022 was in the range of VND60-85 million ($3,630) per square meter, according to DKSH. Photo by The Investor/Lam Ngoc.

The price of Grade A apartments in HCMC in July 2022 was in the range of VND60-85 million ($3,630) per square meter, according to DKSH. Photo by The Investor/Lam Ngoc.

Land plots

Data from real estate consultant DKRA Vietnam shows that, in July, in the land plot segment, supply recorded an increase of about 49% over June, but remained quite low compared to the period preceding 2019.

Specifically, there were six projects for sale, including two new and four next phase, providing the market with 857 plots. Of these, 410 plots were sold. New supply mainly stemmed from Binh Duong province, which neighbors Ho Chi Minh City.

Sales in this market segment reached 48% of supply, down 6% against June and 26% against May. The reasons were that the State Bank of Vietnam had not taken any action to extend credit room and information on amendments to the Land Law made investors more cautious.

Selling prices in the secondary market increased by 7-11% compared to the end of last year, however, liquidity decreased largely due to strengthened credit control. It is forecast that in the coming months, supply and consumption would continue to fall, mainly in Binh Duong and Long An, both near HCMC.

Apartments

For the apartment segment, new supply concentrated in HCMC and Binh Duong. The southern economic hub took the lead by accounting for 62% of supply and 70% of market consumption. Meanwhile, Long An, Dong Nai, Ba Ria-Vung Tau and Tay Ninh saw a shortage in new supply in July.

In July, 13 projects, including one new and 12 next phase, supplied the market with 2,159 units, of which 1,171 were sold.

According to DKRA, low demand in this segment prompted investors to continuously launch policies on discounts, payment rescheduling, and extending the grace period for loan principal and interest repayment to stimulate buyer demand.

In Binh Duong, supply in the month was mainly Grade B apartments, with prices ranging from VND30-46 million ($1,970) per square meter.

The price in the primary and secondary markets did not see many fluctuations with low liquidity, influenced by tightened credit control as well as concerns over future macro developments.

In HCMC, the apartment segment saw the presence of seven projects, with 1,345 units offered and 819 units sold. The city's eastern part, Thu Duc city, continued to lead the market, making up 56% of the supply and 61% of consumption in July.

Grade A apartments maintained their leading position, with prices ranging from VND60-85 million ($3,630) per square meter, accounting for 63% of the total new supply.

The absorption rate of new projects was at its lowest level since the beginning of the year, at only 40-60% of the total units offered in the month. Meanwhile, affordable Grade C apartments remained absent.

Townhouses, villas

In the townhouse and villa segment, there were 16 projects, including five new and 11 next phase, providing the market with 2,097 units, of which 926 units were sold.

Supply recorded a strong growth year-on-year, but only concentrated in certain projects in Binh Duong and Dong Nai. Ba Ria-Vung Tau and Tay Ninh continued to experience a new supply shortage.

Consumption recovered in July over the same period last year, but was still low, mainly in projects in Tan Uyen and Ben Cat towns of Binh Duong.

The selling price in the primary market increased slightly by 2-4% compared to the previous period (each period being one to three months apart), with many preferential policies applied by investors to attract customers.

Projects with selling price of less than VND5 billion ($214,000) per unit attracted attention. Supply and consumption are expected to continue falling significantly in August and concentrate in Binh Duong and Dong Nai, DKRA noted.

In HCMC, supply was mainly seen in the city's eastern part, accounting for 59% of the metropolis's total supply. There were four projects opened for sales, one new and three next phase, offering 167 units, of which 93 were sold.

Overally, the consumption-to-supply ratio of this segment reached 42% with a total of 141 units absorbed by the market.

Comments (0)
  • Read More
Vietnam to have 34 cities, provinces, instead of 63: Party chief 

Vietnam to have 34 cities, provinces, instead of 63: Party chief 

Vietnam plans to reduce the number of cities and provinces from the current 63 to 34, as part of a scheme to streamline its administrative apparatus, Party General Secretary To Lam said Friday.

Politics - Sat, March 29, 2025 | 4:18 pm GMT+7

Thailand’s digital ad spending predicted to grow 10% in 2025

Thailand’s digital ad spending predicted to grow 10% in 2025

Thailand’s online advertising spending in 2025 is forecast to grow 10% to THB35 billion (over $1 billion), based on a gradual rebound of the local economy and intense competition in the digital industry, according to the Digital Advertising Association of Thailand (DAAT).

Southeast Asia - Sat, March 29, 2025 | 3:39 pm GMT+7

US Defence Secretary reaffirms alliance commitment during visit to Philippines

US Defence Secretary reaffirms alliance commitment during visit to Philippines

U.S. Secretary of Defence Pete Hegseth reaffirmed Washington’s strong commitment to its alliance with the Philippines during his official visit to the Southeast Asian country on Friday.

Southeast Asia - Sat, March 29, 2025 | 3:32 pm GMT+7

Southern Vietnam province Tra Vinh okays five more wind power projects

Southern Vietnam province Tra Vinh okays five more wind power projects

Vietnam's southern coastal province of Tra Vinh has granted in-principle approvals for five wind power plant projects, with a total investment of over VND 13.8 trillion ($540 million).

Southeast Asia - Sat, March 29, 2025 | 3:29 pm GMT+7

Vietnam, South Africa eye stronger air logistics links

Vietnam, South Africa eye stronger air logistics links

Vietnam and South Africa are seeking to strengthen air logistics cooperation to meet rising trade and transportation demands.

Southeast Asia - Sat, March 29, 2025 | 3:24 pm GMT+7

Net profit of Vietnam-Singapore Industrial Park nearly doubles in 2024

Net profit of Vietnam-Singapore Industrial Park nearly doubles in 2024

Vietnam-Singapore Industrial Park J.V. Co., Ltd, or VSIP, the largest industrial park developer in Vietnam, posted VND3.28 trillion ($128.37 million) in net profit in 2024, up nearly 93% year-on-year.

Industrial real estate - Sat, March 29, 2025 | 3:18 pm GMT+7

Trump Organization eyes golf course, hotel projects in Vietnam

Trump Organization eyes golf course, hotel projects in Vietnam

A consortium between the Trump Organization and its partner in Vietnam plans multiple investments worth billions of dollars in golf courses, hotels and real estate projects Vietnam, Reuters quoted the consortium’s spokesman as saying.

Real Estate - Sat, March 29, 2025 | 11:06 am GMT+7

Livestock major Dabaco invests in 8.2-hectare dry port in northern Vietnam

Livestock major Dabaco invests in 8.2-hectare dry port in northern Vietnam

Vietnam’s leading livestock firm Dabaco has invested in an 8.2-hectare inland container depot (ICD) in Bac Ninh province, an emerging manufacturing hub in northern Vietnam and home to a Samsung Electronics plant.

Infrastructure - Sat, March 29, 2025 | 10:51 am GMT+7

Phuong Tien Minh appointed CEO of life insurer FWD Vietnam

Phuong Tien Minh appointed CEO of life insurer FWD Vietnam

Hong Kong-headquartered FWD Group Holdings Limited has appointed Phuong Tien Minh as CEO of life insurer FWD Vietnam, effective Thursday, March 27.

Finance - Sat, March 29, 2025 | 10:40 am GMT+7

Vietnam's Deputy PM backs formation of free trade zone in Binh Dinh province

Vietnam's Deputy PM backs formation of free trade zone in Binh Dinh province

Vietnam’s Deputy Prime Minister Nguyen Chi Dung on Friday expressed his support for an early study of a free trade zone in Phu My Port area, the south-central province of Binh Dinh.

Economy - Sat, March 29, 2025 | 8:25 am GMT+7

Vietnam offers numerous advantages for Skoda Auto's investment: executive

Vietnam offers numerous advantages for Skoda Auto's investment: executive

Vietnam offers a range of advantages for investment by Czech automaker Skoda Auto, including its seaport system, logistics infrastructure, and skilled labor, the company’s chairman and CEO Klaus Zellmer said on Thursday.

Industries - Fri, March 28, 2025 | 7:33 pm GMT+7

Vietnam plans to cut import tax for LNG to 2%

Vietnam plans to cut import tax for LNG to 2%

Vietnam’s Ministry of Finance is drafting a decree on preferential import tax for some products, including a proposal of 2% tax rate for LNG.

Energy - Fri, March 28, 2025 | 4:31 pm GMT+7

AES’s $2.1 bln LNG power project needs solutions to meet deadline: Vietnam authorities

AES’s $2.1 bln LNG power project needs solutions to meet deadline: Vietnam authorities

The 2,250-MW Son My 2 LNG-fired power project, invested by the U.S.'s AES and state-run Petrovietnam subsidiary PV Gas, “needs solutions” to meet its deadline.

Energy - Fri, March 28, 2025 | 4:06 pm GMT+7

Over $9 bln pledged for investment projects in central Vietnam province Binh Dinh

Over $9 bln pledged for investment projects in central Vietnam province Binh Dinh

Binh Dinh province on Friday handed over MoUs on investment cooperation, in-principle approvals and investment registration certificates to 62 projects worth over VND231 trillion ($9.03 billion).

Industries - Fri, March 28, 2025 | 4:05 pm GMT+7

Vietnam's giant Vingroup eyes mullti-billion-dollar renewable, LNG power projects

Vietnam's giant Vingroup eyes mullti-billion-dollar renewable, LNG power projects

Vietnam's leading private conglomerate Vingroup is seeking the government's permission to develop seven renewable energy projects worth $20-25 billion and a $5.5 billion LNG-fired power project from 2025-2030.

Energy - Fri, March 28, 2025 | 1:09 pm GMT+7

While the buzz around a market upgrade is back, who is this milestone for?

While the buzz around a market upgrade is back, who is this milestone for?

A key issue for the Vietnamese stock market is the underdevelopment of the institutional investor base. The dominance of retail investors can create heightened volatility, which, in turn, reduces the incentive for high-quality companies to list on the stock exchange, writes Gary Harron, head of securities services at HSBC Vietnam.

Consulting - Fri, March 28, 2025 | 10:31 am GMT+7