While the apartment supply in Ho Chi Minh City has hit its lowest point in the last 10 years, neighboring Binh Duong province is emerging as an attractive destination for home buyers with a supply of diverse products at affordable prices, according to Savills Vietnam.
Easing "thirst" for affordable housing in HCMC
Savills Vietnam's latest real estate market report shows that the apartment supply in HCMC reached only 10,700 units in 2023, and the number of apartment transactions over the past decade decreased continuously by 7% each year. In the context of scarce supply and high prices, the market recorded only 6,300 transactions last year.
New supply accounted for 78% of the total transactions with an absorption rate of 84%. New projects sell well thanks to a clear legal status before launch, long payment periods, bank loan support, and accessible prices ranging from VND2-5 billion ($81,000-202,500) per unit.
If new supply is excluded, transactions were still weak with only 670 units sold, or an absorption of 14%. Selling prices in the primary market returned to the 2020 levels of around VND69 million ($2,795) per square meter, down 36% quarter-on-quarter and 45% year-on-year after many expensive projects had to temporarily close their shopping carts.
Giang Huynh, associate director, head of research and S22M at Savills Vietnam, said that last year, HCMC no longer saw products under VND2 billion ($81,000) and 90% of transactions were in the segment of VND2-5 billion ($202,800) per unit.
"In the 2024-2026 period, the number of apartments priced at VND2-5 billion is increasingly scarce, with supply mainly in the segment of VND5-10 billion (202,500-405,000) per unit. Therefore, home buyers in the southern economic hub may switch to buying products in neighboring areas such as Binh Duong, Dong Nai and Long An at more affordable prices," she analyzed.
This expert said that this year, about 96% of supply in Binh Duong, Dong Nai and Long An is less than VND5 billion per unit. Therefore, these localities will ease the "thirst" for affordable housing in the HCMC area.
"Apartment products in Binh Duong and Dong Nai still maintain competitive prices compared to the HCMC market. This makes these areas attractive destinations for home buyers. In particular, housing demand in Binh Duong is increasing strongly thanks to its industrial development and increasing immigration rate, which lead to stable market demand," she said.
Series of projects launched in Binh Duong
The supply of apartment projects in Binh Duong in recent years has developed diversely in terms of number of projects, segments, and product types. Compared to the HCMC market, apartment buyers in Binh Duong have many more options with affordable prices.
A series of affordable apartment projects from developers such as Phu Dong Group, Bcons Group and Phat Dat Real Estate Development Corp., as well as newcomers in 2024 promise to bring many choices to home buyers with real needs.
The Phu Dong SkyOne project in Di An town developed by Phu Dong Group is an example. Following the success of the Phu Dong SkyGarden project, the developer is preparing to open for sale Phu Dong SkyOne, an apartment project that serves real housing needs, in March.
The project has two apartment blocks with 30 floors and one basement, supplying the market 780 apartments with an area of 42-75 square meters. The expected price of each apartment is from VND1.4 billion ($56,700) to VND2.2 billion ($89,100), and 75% are priced from VND1.4-1.8 billion, meeting the needs of the majority. The apartments are expected to be handed over in December 2025.
A&T Group, a new developer in Binh Duong, plans to launch the A&T Sky Garden project in Thuan An town. The project has two blocks of 40 floors, with 946 apartments and 18 commercial service and office apartments. The apartments are designed to have 1-3 bedrooms with areas ranging from 46.9 to 95 square meters. They are expected to be delivered in 2027.
In addition to new projects, the affordable housing market in Binh Duong continues to welcome supplies from the next phases of existing projects. Among them, the most worth considering is Bcons Group’s Green Topaz Tower of the Bcons City project in Di An town.
This tower has 29 floors, offering apartments of two bedrooms. The apartments will be opened for sale in its first phase this year with prices from VND1.7 billion ($68,850). The investor is offering an attractive sales policy for buyers, including a discount of 11% and payment of VND180 million ($7,290) to sign a purchase and sales contract. The apartments are expected to be handed over in the first quarter of 2025.
The Bcons Polygon project in Di An town, also from Bcons, continues to sell its primary shopping carts. This project has more than 700 apartments, with prices from VND32-40 million ($1,296-1,620) and areas from 41-67 square meters. Currently, the apartments are being completed and are expected to be handed over in the third quarter of this year.
Similarly, The Maison project in Thu Dau Mot town developed by C-Holdings has been launched for sale with many attractive policies. The project has two blocks of 29 floors with 632 apartments with 1-3 bedrooms. Fully-furnished apartments are priced from VND2 billion ($81,000) each. The project is currently under construction and is about to top out to be delivered to customers at the end of this year.
In addition, a number of other developers are also preparing for their next offers in this market.