HCMC property market shows signs of recovery: construction authorities

The real estate market in Ho Chi Minh City has shown signs of a recovery but remains unstable, according to the municipal Department of Construction.

Businesses have been able to access credit thanks to the State Bank of Vietnam’s eased monetary policies, it said in a report, forecasting that in the third quarter, the market will remain stagnant due to a lack of new projects.

“The government and HCMC authorities are focusing on improving the legal corridor, solving internal difficulties, and accelerating the liquidation of finished products,” the department said.

It said in the second quarter of 2023, it had given the nod to eight projects to sell a total of 6,313 apartments, down 18.6% compared to the first quarter (7,753 units) and 33.24% over the same period in 2022 (9,456 units).

Regarding commercial housing development, in the second quarter, one project had its investment plan approved for a 7,700-square meter complex of high-rise apartments, trade and service center and office buildings in Thu Duc city. Invested by Phuong Nam Construction and Investment Development JSC, the project will supply the market with 650 apartments once it is completed.

In addition, Ho Chi Minh City is implementing 30 commercial housing projects with nearly 34,000 apartments and 222 low-rise houses. Of which, an apartment project with 166 units was completed in the second quarter.

The city is also deploying five social housing projects with 3,788 units, along with one project freshly licensed in the quarter.

Meanwhile, according to the Vietnam Association of Realtors (VARS), in the second quarter, the Vietnam real estate market had almost no supply of affordable apartments (under VND25 million or $1,055 per square meter), down 98% compared to 2019.

Particularly, apartment prices in HCMC remained high because newly launched projects were mainly high-end, averaging VND67 million ($2,830) per square meter, down 4.6% compared to the first quarter.

Developers have continued to offer preferential policies for both homebuyers and distributors such as pre-payment for marketing and communication expenses for agents; reducing deposit amounts and extending payment deadlines; and early handovers for only 30-40% of the house value, compared to 95% before.

Also in the quarter, two projects in the southern economic hub sold well. The Glory Heights project located in Vinhomes Grand Park uban area in Thu Duc city offered 3,169 apartments at an average selling price of VND42-80 million ($1,780-3,385) per square meter. Of which, over 2,000 units were snaped up in 34 hours.

Hung Thinh Incons’ Avatar Thu Duc project in Thu Duc city recorded 380 transactions, with an average selling price of VND63-66 million ($2,670-2,790) per square meter.