HCMC real estate market set for year-end warm up: experts

Ho Chi Minh City’s property market is likely to warm up at the year-end as developers get ready to launch projects and accept reservations for deposits, experts say.

Currently, most of the supply comes from high-end apartments in the city’s eastern and southern areas, with a smaller portion of mid-range units from well-known developers.

The Eaton Park project in Thu Duc city by Malaysian developer Gamuda Land has 2,000 high-end apartments. Its first sales were launched in April 2024, featuring Towers A5 and A6, part of the project's first phase.

The offered price was around VND120 million ($4,876) per square meter, or about VND6-7 billion ($284,437) for a one-bedroom apartment, VND8-10 billion for a two-bedroom apartment, and VND13-15 billion for a three-bedroom apartment.

In the project’s second phase, the Malaysian developer plans to launch 550 apartments in Towers A1 and A2 in October average prices starting from VND142 million ($5,770) per sqm (excluding VAT).

Vietnamese real estate giant Vinhomes is about to introduce the The Opus One part of the Vinhomes Grand Park urban area in Thu Duc city. The offered price for apartments is VND82 million ($3,332) per sqm; and the developer is currently accepting reservations in preparations for an official launch.

Another developer, Masterise Homes, is set to unveil a high-rise subdivision within its project The Global City. The first phase, which includes four towers, is expected to be launched in October, with unconfirmed reports putting apartment prices at around $7,500 per sqm. Next year, this developer will launch garden house products.

The King Crown Infinity project in Thu Duc city, developed by BCG Land, real estate arm of Vietnamese conglomerate Bamboo Capital, is also joining the year-end sales race. The project, which began construction in late 2020, had only completed basements by June this year.

With two 30-storey twin towers, the project will offer approximately 800 apartments, officetels and shophouses. In a new sales round, the developer plans to sell 200 units priced between VND99-125 million ($5,080) per sqm.

Meanwhile, Van Phuc Group plans to launch several townhouse products in Q4/2024 and high-end apartments in early 2025 in the Van Phuc City urban area, Thu Duc city.

In the more affordable segment, the Citi Grand project in Thu Duc city, developed by Kien A Corp., is expected to open sales in the fourth quarter of this year with prices ranging from VND2.5-2.8 billion ($113.96 million) per unit.

The project, which had been dormant for several years, is currently under construction. It has a total of 25 stories with 666 two-bedroom apartments.

Also in Thu Duc city, the Fiato Uptown project will launch new sales, offering nearly 400 residential and commercial service apartments.

At the end of July 2024, the developer held a sales event that did not do very well. The remaining inventory will be sold in the coming months. The current price for Fiato Uptown apartments is approximately VND55 million ($2,240) per sqm.

In the southern area, the Lavida Plus project in District 7 offered 1,665 units for sale after completion, 400 of which have remained unsold. Developer Quoc Cuong Gia Lai plans to launch the remaining inventory in Q4/2024 with an approximate price of VND45 million per sqm (excluding VAT).

Similarly, the Khai Hoan Prime project (formerly La Partenza) by Khai Hoan Land, stuck in legal issues for years, is preparing to launch 360 of nearly 1,300 apartments from the tower deemed its best, with prices at VND48-55 million per sqm (excluding VAT).

Positive signs despite challenges

Real estate expert Nguyen Hoang assessed that while the market continued to face many difficulties, there were positive signs indicating that it will become “warmer" by the end of the year, given recovering demand, improving market sentiment and the expected launch of many projects.

"Many projects are preparing to capitalize on the positive market sentiment. Most of these have met all legal requirements and come from reputable, well-known developers," he noted.

Vo Hong Thang, investment director at DKRA Group, said obstacles in project licensing continued to hinder businesses and new supplies.

The mismatch between supply and demand has been a persistent issue, he noted. New supplies have mainly come from high-end and luxury segments and there has been a dearth of affordable and social housing units to meet the real needs of a majority of the population.

"Demand in the market has increased, but remains low in both the primary and secondary markets. The factors behind the market’s slow recovery include a wait-and-see approach and legal troubles surrounding several projects," he said.

In the market, transactions were primarily focused on affordable housing that served real living needs, especially in major cities with convenient connections to the center, full legal status, and clear construction progress, he added.

Thang said that the current sluggish market situation may continue until the end of this year, with the apartment segment still driving supply and consumption across the market.

"The real estate market has established a solid foundation for sustainable development. By the year-end, there will be certain bright spots, but still at a cautious level. Clearer signs of recovery are expected to emerge from mid-2025 to early 2026, once the current problems are thoroughly resolved," he said.