Sales forecast positive for affordable, social housing in 2023

By Pham Vu
Tue, January 3, 2023 | 12:48 pm GMT+7

Affordable and social housing is likely to see high demand in 2023 which would help ease the market stagnation, said realty experts and developers.

Apartments priced from VND40 million to VND60 million ($1,700-2,550) per square meter will be in high demand this year. The good news is there are reputable developers who have an interest in this segment, they said.

Dinh Minh Tuan, south region director of the real estate platform Batdongsan.com.vn, noted that real demand would help ease the stagnation in the current market, and the affordable segment is forecast to be in focus this year.

“Developers are restructuring their debts and sales policies, focusing on serving real demand. In addition, real estate prices are expected to fall further,” he said.

According to Vietnam Real Estate Brokers Association vice chairman Nguyen Van Dinh, apartments in the price range of VND2-3 billion ($85,000–$127,500) would be the main target.

“Customers will look for products with reasonable prices before deciding to buy,” Dinh said.

Similarly, Asian Holding CEO Nguyen Van Hau told The Investor that the price range will welcome more buyers. He added that the social housing segment will rally thanks to reasonable prices as developers are controlled in terms of profit. In addition, social housing buyers can receive support in terms of decades-long lending rates.

The affordable housing segment is attractive thanks to real demand, say experts. Photo courtesy of Phu Dong Group.

The affordable housing segment is attractive thanks to real demand, say experts. Photo courtesy of Phu Dong Group.

Demand exists

Despite many fluctuations in the Vietnamese market in 2022, the affordable apartment segment in the Greater Ho Chi Minh City region remained attractive, unlike other segments.

Multiple transactions have been recorded in the above-mentioned price range. Apartments at two Nam Long Group-developed projects, Akari City in Binh Tan district and Flora Panorama in Binh Chanh district, both in HCMC, have seen 80-90% of supply traded.

Currently, the price for a two-bedroom apartment with an area of 75 square meters at Akari City’s phase 2 is about VND2.9-3 billion ($127,700), while a two-bedroom apartment of 54 square meters is a little cheaper at VND2.4-2.5 billion ($106,400). The four towers of Akari City’s phase 2 are scheduled for completion in the third quarter of 2024.

In the east of HCMC, the MT Eastmark City project developed by Dien Phuc Thanh Company has also shown a very high absorption rate. After two rounds of sales, the project has sold about 1,000 apartments. The first round’s price last April was VND36 million ($1,530) per square meter, and the second round’s price last July was a little higher at VND39 million ($1,657).

MT Eastmark City is expected to offer more apartments this year, with primary prices of VND40-43 million (1,830) per square meter, slightly higher than the second round.

In the city suburbs, the Phu Dong Sky Garden project developed by Phu Dong Group has an affordable price of VND40 million ($1,700) per m2. The project has more than 600 apartments in all, with construction beginning in March 2022 and delivery set for 2024.

The Vietnamese residential market in 2023 will continue to face many challenges such as tightened monetary policy, high lending rates, and low liquidity in the market. The outlook is expected to improve in late 2023 and stabilize in 2024, said experts and developers.

Comments (0)
  • Read More
Vietnamese multi-sector group Masan uses AI to forecast product sales: executive

Vietnamese multi-sector group Masan uses AI to forecast product sales: executive

AI has helped Masan Group forecast the number of items likely to be sold during peak season based on available data and to optimize product placement, says An Luong, head of the corporation’s artificial intelligence & data science division.

Companies - Sun, November 3, 2024 | 2:51 pm GMT+7

Vietnam needs large, specialized logistics centers to compete better: official

Vietnam needs large, specialized logistics centers to compete better: official

Vietnam needs large-scale, specialized logistics centers that will enable greater competitiveness of local economies and enterprises, says Tran Thanh Hai, deputy head of the Ministry of Industry and Trade's agency of foreign trade.

Economy - Sun, November 3, 2024 | 11:00 am GMT+7

Vietnam manufacturing sector sees 35% increase in Q3 job orders: Adecco

Vietnam manufacturing sector sees 35% increase in Q3 job orders: Adecco

Vietnam’s manufacturing and sourcing sectors saw a substantial 35% year-on-year increase and a 52% quarter-on-quarter increase in Q3/2024 job orders, global workforce solutions provider Adecco said in a reseach report released Thursday.

Economy - Sun, November 3, 2024 | 9:00 am GMT+7

Construction majors to continue capitalizing on public investment projects

Construction majors to continue capitalizing on public investment projects

Vietnamese construction giants are expected to continue capitalizing on public investment projects for the remainder of this year after delivering strong performances in the third quarter, analysts say.

Companies - Sun, November 3, 2024 | 8:00 am GMT+7

Former Government Office chairman receives $7,900 bribe from property project

Former Government Office chairman receives $7,900 bribe from property project

Mai Tien Dung, former Minister-Government Office Chairman, received a bribe worth VND200 million ($7,900) from Nguyen Cao Tri, owner of the Dai Ninh eco-resort and urban area project in Lam Dong province.

Society - Sat, November 2, 2024 | 9:13 pm GMT+7

Thai food giant CP enters public-private partnership to promote food system transformation

Thai food giant CP enters public-private partnership to promote food system transformation

Thai-invested C.P. Vietnam Livestock JSC and the Partnership for Sustainable Agriculture Vietnam (PSAV) signed a memorandum of understanding Friday on working together to advance sustainable agriculture in the country.

Companies - Sat, November 2, 2024 | 7:16 pm GMT+7

Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year

Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year

Vietnam’s central province of Quang Ngai will work with the investor to have construction of VSIP II Quang Ngai, a facility based on the Vietnam-Singapore Industrial Park (VSIP) model, begin in August 2025.

Industrial real estate - Sat, November 2, 2024 | 3:47 pm GMT+7

Vietnam likely to grow 6.5% in 2024-2025: VinaCapital

Vietnam likely to grow 6.5% in 2024-2025: VinaCapital

VinaCapital, among the biggest foreign-run asset managers in Vietnam, has forecast the country’s economy to achieve 6.5% growth in both 2024 and 2025, with the composition of the expansion to change to more domestically driven factors next year.

Economy - Sat, November 2, 2024 | 2:00 pm GMT+7

Major Vietnamese developer Novaland appoints new CEO

Major Vietnamese developer Novaland appoints new CEO

Duong Van Bac, who joined Novaland as chief financial officer in August 2023, has been appointed general director, starting Friday.

Companies - Sat, November 2, 2024 | 10:24 am GMT+7

Vietnamese conglomerate Bamboo Capital posts 36-fold profit growth in Q3

Vietnamese conglomerate Bamboo Capital posts 36-fold profit growth in Q3

Ho Chi Minh City-based Bamboo Capital Group recorded an after-tax profit of VND331.2 billion ($13.1 million) in the third quarter of 2024, an astounding 36-fold expansion year-on-year.

Southeast Asia - Sat, November 2, 2024 | 9:41 am GMT+7

ThaiBev to bag $54 mln from Sabeco’s upcoming dividend payout

ThaiBev to bag $54 mln from Sabeco’s upcoming dividend payout

Vietnam Beverage, wholly owned by Thai Beverage (ThaiBev) will rake in VND1,374 billion ($54.26 million) worth of dividend from Ho Chi Minh City-based top brewer Sabeco.

Companies - Sat, November 2, 2024 | 9:13 am GMT+7

Steel heavyweight Hoa Phat pours over $2 bln into central Vietnam complex

Steel heavyweight Hoa Phat pours over $2 bln into central Vietnam complex

Leading Vietnamese steelmaker Hoa Phat had invested more than VND52.5 trillion ($2.08 billion) in its Dung Quat Iron and Steel Integrated Complex (Dung Quat 2) in the central province of Quang Ngai as of Q3/2024.

Industries - Sat, November 2, 2024 | 8:00 am GMT+7

Vietnam becomes Australia’s fastest-growing inbound market

Vietnam becomes Australia’s fastest-growing inbound market

The number of Vietnamese tourists to Australia has grown significantly after the Covid-19 pandemic, with nearly 178,000 reported in the 12 months to August 2024, according to a Friday press release by the Australian Minister for Trade and Tourism’s Office.

Southeast Asia - Fri, November 1, 2024 | 10:02 pm GMT+7

Study finds shift in Thai consumers’ spending patterns

Study finds shift in Thai consumers’ spending patterns

Consumers in Thailand are shifting their spending focus to experiences and investments, according to the latest ASEAN Consumer Sentiment Study (ACSS) by United Overseas Bank (UOB).

Southeast Asia - Fri, November 1, 2024 | 10:00 pm GMT+7

Energy security, digitalization key to Indonesia's economic growth

Energy security, digitalization key to Indonesia's economic growth

The Indonesian government is prioritizing long-term economic growth through energy security, digitalization, and natural resource industrialization, according to Deputy Minister of Finance Thomas Djiwandono.

Southeast Asia - Fri, November 1, 2024 | 9:58 pm GMT+7

Vietnam PM's Middle East tour creates breakthroughs in economic, trade, investment cooperation: FM

Vietnam PM's Middle East tour creates breakthroughs in economic, trade, investment cooperation: FM

Prime Minister Pham Minh Chinh’s freshly ended six-day trip to the UAE, Saudi Arabia and Qatar has produced important outcomes, demonstrating the growing relations between Vietnam and the three Middle-East countries, Deputy Prime Minister and Foreign Minister Bui Thanh Son told the Vietnam News Agency.

Politics - Fri, November 1, 2024 | 9:25 pm GMT+7