Despite being the central urban area of the Mekong Delta region, Can Tho city is facing a scarcity of real estate products this year, with only one project put up for sale in the first quarter.
According to the municipal Real Estate Association, the number of transactions in the locality in 2023 totaled 7,155, down 20% compared to 2022. Last year, Can Tho city had five projects eligible to sell future-formed housing, including three commercial housing and two social housing projects with a total of 1,196 apartments, 11 townhouse lots, and two villa lots.
It stated that the supply of primary projects in the city will continue to be scarce in 2024, with the main supply coming from the apartment segment, including social and commercial apartments.
Statistics show that Can Tho, one of the five centrally-run cities in Vietnam, currently has about 70 housing projects under construction.
The only project qualified to sell future-formed housing is the Cara River Park project in the South Can Tho Urban Area in Hung Thanh ward, Cai Rang district. The project, developed by Dat Xanh Mien Tay Services and Investment JSC, offers 338 residential and 20 commercial serviced apartments.
In addition, there is only one project eligible to mobilize capital, called the Green Dream apartment project on Nguyen Van Quang street, Nam Long Residential Area, Hung Thanh ward, Cai Rang district, invested by Nhip Dieu Xanh Architecture Joint Stock Company.
Limited supply of residential real estate, especially housing for real needs, has been attributed to legal problems and poor financial resources among developers, the association said, adding that transactions have mainly come from transfers of real estate in projects launched many years ago.
The association forecast that in 2024, primary selling prices will increase, especially in the apartment segment, with a rise of 5-10% year-on-year. This segment has become a new settlement and investment trend, receiving a positive response. Meanwhile, secondary selling prices may increase slightly.
The land plot segment in particular will continue to see scarce supply and will increase in price sharply in 2024 as a regulation that bans land division for sale in urban areas will take effect on January 1, 2025.