Vietnam’s real estate market is entering a new recovery cycle that will last until mid-2024, and a new growth phase will likely follow, said an expert at property consultancy DKSH Group.
Vo Hong Thang, director of consulting services and project development at the firm, said the property market outlook will brighten as relevant policies take effect, disbursement of public investment accelerates, interest rates are lowered, and market sentiment improves.
A DKRA report quotes him as saying: "New supply is likely to increase in the coming months, mostly in the affordable and social housing segments that typically see real demand of homebuyers.
"Residential housing in urban areas and major cities will be the segment to lead the recovery momentum given its permanently high real demand."
The report says the real estate market in Ho Chi Minh City and its vicinity is beginning to see rising supply and transactions.
In October, eight projects put 960 apartments on the market, down 67% year-on-year. 549 products changed hands, down 55% year-on-year. Binh Duong province accounted for two-thirds of the new supply with 665 apartments.
Mid-end products made up 55% of new supply and 72% of transactions in the region.
Meanwhile, in HCMC, new launches were mostly of high-end (class A) condos in the city’s east. Condo prices in HCMC ranged from VND63 million ($2,590) to VND96.9 million ($3,975) per square meter, which is deemed inaccessible to most buyers.
Apartments in Ba Ria-Vung Tau province were offered for VND32-51.3 million per sq. m. The lowest price of VND16 million per sq.m was seen in Binh Duong.
In November, only two developers put up products for sale, totalling 740 apartments, up 27% year-on-year. There were 681 transactions recorded, triple year-on-year.
In HCMC exclusively, new supply in November declined 23% over October but was higher than the same period last year. New launches in this city were mainly in the mid-end segment in the city’s western part, with prices at VND52-57 million ($2,140-$2,346) per sq. m.
The DKRA report notes that developers are offering discounts for early payment, longer repayment periods and other promotions.