Greater HCMC Region apartment supply up 22% in 2022

By Vu Pham, Tuong Nguyen
Mon, January 16, 2023 | 2:34 pm GMT+7

Ho Chi Minh City and surrounding provinces had 72 apartment projects open for sale last year with 26,681 units in new supply, an increase of 22% compared to 2021, according to real estate consultancy DKRA Vietnam.

Apartment blocks in Ho Chi Minh City, southern Vietnam. Photo by The Investor/Vu Pham.

Apartment blocks in Ho Chi Minh City, southern Vietnam. Photo by The Investor/Vu Pham.

The Greater HCMC Region’s 2022 total consumption was 20,713 units, or 78% of the new supply, an increase of 19 percentage points against 2021, the firm said.

HCMC’s highest primary selling price was up to VND440 million ($18.780) per square meter, while the lowest was VND38 million ($1,620) per square meter, under one-tenth of the highest.

The two ends in Binh Duong province were VND60 million ($1,560) and VND17.3 million ($740); and those in Ba Ria-Vung Tau were VN47.8 million ($2,040) and VND32 million ($1,370).

New supply in HCMC and neighboring provinces recorded an increase of 22% compared to 2021 but is still at a low level compared to the period of 2019 and earlier.

In terms of last year’s new supply, HCMC was the leader with 64.8% of the total, followed by Binh Duong (31.4%), Dong Nai (1.9%), Ba Ria-Vung Tau (1.2%), and Long An (0.7%).

Grade A and B apartments took the largest parts in segments in the region, with 48.4% and 29.8%, respectively.

HCMC’s Grade A segment accounted for 74.8% of the city’s total supply, with a majority in the eastern area. Binh Duong provided mostly Grade B and C apartments, mainly in the towns of Thuan An, Di An, along National Highway 13, together with Ben Cat and Tan Uyen districts.

According to DKRA, overall market demand was at a low level, declining in the second half of 2022 due to the government’s tightened credit policy, and limited access to capital for both developers and buyers. Popular consumption rates at many newly introduced projects were 30-65%.

In this context, some developers offered a discount rate of up to 40% to buyers who accepted a shorter payment period.

Affordable apartments in real need

The Grade C segment, which means affordable apartments, saw some slight price increases last year due to real demand.

According to DKRA, last year’s average secondary selling price in the Grade C segment was VND27.8 million ($1,190) per square meter, an increase of 30.5% compared to 2018, meaning an average annual increase of 6.1%.

Apartments priced in the VND1.2-1.5 billion ($51,200 - 64,000) range in areas on HCMC’s outskirts were the most searched for.

The market has not seen new supply for this segment since mid-2019. Therefore, liquidity in the segment remains. Experts forecast demand for such affordable flats would continue to rally.

HCMC’s East leads apartment supply

The East of HCMC is a gateway connecting the metropolitan areas with surrounding provinces, especially the HCMC-Binh Duong-Dong Nai triangle. It is a fast-developing area in both socio-economic development and traffic connectivity. Thu Duc city, the area’s core, is an innovative and integrated urban area of HCMC, making real estate development in Thu Duc hotter and hotter.

According to DKRA, the East area’s 2022 new supply of apartments was around 76% of HCMC’s, much higher than just 28% in 2017. Its contributions in the years to come are forecast at 60-75%.

Comments (0)
  • Read More
Masan MEATLife stock jumps on continued profit momentum

Masan MEATLife stock jumps on continued profit momentum

The ticker of Masan MEATLife (MML), a subsidiary of Vietnamese consumer retail giant Masan Group, jumped by 8.71% to VND31,200 ($1.2) per share on Monday, after it reported profit for the third consecutive quarter in Q1/2025.

Companies - Mon, June 2, 2025 | 10:34 pm GMT+7

Vietnam's VSIP Binh Dinh industrial park seeks to become 'golden destination' for Thai firms

Vietnam's VSIP Binh Dinh industrial park seeks to become 'golden destination' for Thai firms

The Becamex VSIP Binh Dinh service-urban-industrial complex in the central province of Binh Dinh is emerging as a promising destination for Thai enterprises, said its developer Becamex Binh Dinh JSC.

Industrial real estate - Mon, June 2, 2025 | 10:24 pm GMT+7

Termination of feed-in-tariff mechanism a major bottleneck in Vietnam’s electricity transition: expert

Termination of feed-in-tariff mechanism a major bottleneck in Vietnam’s electricity transition: expert

A major bottleneck in Vietnam’s electricity transition has been the termination of the feed-in-tariff (FIT) mechanism in 2021, with no suitable replacement mechanism in place, according to the director of Hanoi-based Institute of Energy Technology.

Economy - Mon, June 2, 2025 | 4:56 pm GMT+7

Vietnam Vaccine JSC launches high-quality healthcare shop chain

Vietnam Vaccine JSC launches high-quality healthcare shop chain

Vietnam Vaccine JSC (VNVC), well known for its vacciation services, on Saturday launched its VNVC Shop, a chain offering safe, high-quality healthcare products from globally recognized brands.

Companies - Mon, June 2, 2025 | 4:05 pm GMT+7

Vietnam heavyweight PV Gas plans $3 bln investment over next 5 years

Vietnam heavyweight PV Gas plans $3 bln investment over next 5 years

PV Gas, a subsidiary of state-owned giant Petrovietnam, plans to make "strong investment" over the next five years in areas such as infrastructure and import-distribution of LNG.

Energy - Mon, June 2, 2025 | 2:01 pm GMT+7

Vietnam sees renewed output expansion, improved business confidence in May: S&P Global

Vietnam sees renewed output expansion, improved business confidence in May: S&P Global

May saw a more stable picture in terms of U.S. tariff policies than April, helping lead to a renewed expansion in output and improved business confidence, says Andrew Harker, economics director at S&P Global Market Intelligence.

Economy - Mon, June 2, 2025 | 9:18 am GMT+7

Vietnam considers developing 2 inter-regional renewable energy service and industry hubs

Vietnam considers developing 2 inter-regional renewable energy service and industry hubs

The Ministry of Industry and Trade (MoIT) has proposed building two inter-regional renewable energy service and industry hubs in the country.

Economy - Mon, June 2, 2025 | 8:00 am GMT+7

Investors advised to take profits from stocks having risen sharply

Investors advised to take profits from stocks having risen sharply

Investors should maintain a balanced stock allocation in their portfolios and consider buying opportunities if the VN-Index retreats to the 1,300-1,320 point range, say market experts.

Finance - Sun, June 1, 2025 | 8:10 pm GMT+7

Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report

Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report

Shares of Phu Nhuan Jewelry JSC (PNJ), a leading jewelry producer in Vietnam, rallied sharply ahead of the central bank’s Friday release of its gold market inspection findings.

Companies - Sun, June 1, 2025 | 1:14 pm GMT+7

Vietnamese firm takes over 40-year-old Pierre Cardin shoe chain in Thailand

Vietnamese firm takes over 40-year-old Pierre Cardin shoe chain in Thailand

Emall Vietnam, which owns a network of 100 high-end business shoe stores under the Pierre Cardin and Oscar brands in Vietnam, has taken over the entire Pierre Cardin shoe system in Thailand.

Companies - Sun, June 1, 2025 | 10:29 am GMT+7

Southern Vietnam province Ba Ria-Vung Tau okays 53 projects

Southern Vietnam province Ba Ria-Vung Tau okays 53 projects

Ba Ria-Vung Tau authorities on Friday granted in-principle approvals or investment registration certificates for 53 projects, including a green light for a $400 million investment capital hike of the $5.4 billion Long Son Petrochemicals Complex.

Industries - Sun, June 1, 2025 | 8:00 am GMT+7

Who to receive over 97 mln ESOP shares from Vietnam's leading developer Novaland 

Who to receive over 97 mln ESOP shares from Vietnam's leading developer Novaland 

Novaland, a major real estate developer in Vietnam, will simultaneously implement plans to issue bonus shares and offer ESOP (employee stock ownership plan) shares, with a total issuance rate of 5%, equivalent to more than 97 million units.

Companies - Sat, May 31, 2025 | 11:09 pm GMT+7

Vietnam billionaire Pham Nhat Vuong to contribute 48 mln Vingroup shares to VinSpeed

Vietnam billionaire Pham Nhat Vuong to contribute 48 mln Vingroup shares to VinSpeed

Billionaire Pham Nhat Vuong has registered to transfer more than 48 million Vingroup (VIC) shares to the newly-established VinSpeed that registered to build the North-South high-speed railway project.

Companies - Sat, May 31, 2025 | 7:14 pm GMT+7

Two investors propose $65 mln wind power project in central Vietnam

Two investors propose $65 mln wind power project in central Vietnam

A consortium of Quang Tri Renewable Energy Investment JSC and Win Power Holding Pte Ltd, and Nam Binh Wind Power JSC have submitted an application to implement a 48-megawatt wind power plant in the central province of Quang Tri.

Energy - Sat, May 31, 2025 | 3:10 pm GMT+7

Central Vietnam city seeks investors for $209 mln LNG, LPG terminal project

Central Vietnam city seeks investors for $209 mln LNG, LPG terminal project

The central city of Danang is calling for investment in an LNG and LPG terminal project worth over VND5.43 trillion ($208.7 million).

Infrastructure - Sat, May 31, 2025 | 10:52 am GMT+7

Thai-backed food giant C.P. Vietnam rejects pork safety accusations 

Thai-backed food giant C.P. Vietnam rejects pork safety accusations 

C.P. Vietnam, a subsidiary of Thailand’s food giant Charoen Pokphand Foods Public Company Limited (CPF), has dismissed social media allegations of selling diseased pork, calling them fabricated and false.

Companies - Sat, May 31, 2025 | 8:54 am GMT+7