Vietnam property businesses expect market recovery in 2024

Vietnam’s real estate firms are expecting the market to make a U-turn this year, with new projects and the next phases of existing projects to be launched.

With drastic moves taken by authorities and the engagement of the entire banking system, the confidence of customers and investors in the recovery of the real estate market is increasing day by day. This is one of the key issues to the recovery of this important market.

In the fourth quarter of 2023, many localities reported a gradual increase in real estate transactions. The real estate market recorded a large number of large-scale projects across the country starting campaigns to sell products, thus increasing supply and promoting the recovery process.

In the North, the apartment segment saw new supply from the Canopy Residences project, part of the Vinhomes Smart City urban area in Hanoi, with about 1,800 units; and the next phases of The Moonlight 1 An Lac and Rose Town Ngoc Hoi projects in Hanoi. In the low-rise housing segment, a number of projects such as Aquarius in Hung Yen province, Sapa City Clouds in Lao Cai province, and Danko Center urban area in Tuyen Quang province also entered the market.

Ho Chi Minh City and its surrounding areas welcomed new supply from the next phases of Akari City, Glory Heights, Mastery Center Point, The Global City and The Privia projects. In early December, the Sunshine Diamond River project was accelerated, providing the Ho Chi Minh City market with more than 600 luxury apartments.

Nam Long Group is preparing to launch the second phase of the Akari City urban area project, including four 30-storey towers with 1,690 apartments, in the fourth quarter of 2024. This was one of the few projects recording good demand in 2023, offering prices from VND45 million ($1,836) per square meter.

In December 2023, Phu Dong Group also broke ground on the Phu Dong SkyOne project in Di An town, Binh Duong province. In addition, a series of existing projects also restarted after a long period of hibernation, such as the Astral City project in Binh Duong’s Thuan An town by Danh Khoi Group.

In the central region, information about new projects opening for sale also "warmed" the market after a long period of silence, such as Eco Central Park Vinh, The Panorama 2 Da Nang, and The Sailing Quy Nhon.

In particular, after a long period of absence in the market, the resort real estate segment returned, adding to the market supply from large-scale projects such as The 5Way Phu Quoc, Meypearl Harmony Phu Quoc, Regal Legend Quang Binh and The Ocean Resort Quy Nhon.

High hopes for new period

Despite experiencing many difficulties and challenges for a long time, real estate businesses have planned for the new phase of the market.

In December 2023, Gamuda Land held the groundbreaking ceremony for the Eaton Park project in Thu Duc city, HCMC. The project, acquired by Tam Luc Real Estate Joint Stock Company for about for VND7.5 trillion ($306.25 million) in mid-July 2023, is expected to be offered for sale in early 2024 at a price of about $5,000-6,000 per square meter.

Thanh Thao, sales director of Phu Dong Group, said that the newly launched Phu Dong SkyOne will be offered for sale around the end of the first quarter. The VND1.1 trillion ($44.9 million) project includes two 30-storey apartment blocks and one basement, providing the market with 780 apartments of 42-75 square meters, priced at VND1.2-2.2 billion ($49,000-90,000) each.

Also in the first quarter of 2024, the company will hand over 640 luxury apartments at the Phu Dong Sky Garden project in Binh Duong province’s Di An town to customers.

Meanwhile, giant Vinhomes' new sales in 2024 are expected to increase by about 29.4% year-on-year, reaching VND91.6 trillion ($3.74 billion), mainly coming from three major projects: the 877-hectare Vinhomes Vu Yen in Hai Phong city, and the 385-hectare Vinhomes Co Loa and 133-hectare Vinhomes Wonder Park in Hanoi; and the remaining low-rise apartments in the Vinhomes Ocean Park 2 and 3 projects in Hung Yen province.

In 2025, it is estimated that Vinhomes' new sales will reach VND144.2 trillion ($5.89 billion) thanks to the contribution of the 5,545-hectare Vinhomes Ha Long Xanh in Quang Ninh province, 2,870-hectare Vinhomes Long Beach in HCMC, and 924-hectare Vinhomes International University Town in HCMC.

Another famous developer, Van Phuc Group, said that in 2024, it will launch the first luxury apartment project in Van Phuc City Urban Area in HCMC’s Thu Duc city. With the desire to diversify product lines as well as meet people's needs, more than 200 out of over 5,000 apartments to be developed will be launched in the first quarter of 2024. Furthermore, the project will launch villa and townhouse areas in the next phases.

Expecting the real estate market to gradually recover from the end of June 2024, Dat Xanh Services will employ more real estate brokers to sell available projects and launch new products.

The key projects that this unit is offering are in the mid-end segment located in the vicinity of HCMC, such as Tien Hai City, Ngoc Duong Urban Area and Gem Sky World. In 2024, the firm will launch more projects in Binh Duong and Long An provinces.

Novaland plans to re-recruit sales staff in 2024, and offer new products for sale in subdivisions of Aqua City in Bien Hoa town, Dong Nai province, and resort projects in Binh Thuan, Ba Ria-Vung Tau and HCMC. At the same time, it will hand over houses to customers at projects in HCMC, Ba Ria=Vung Tau, Dong Nai and Binh Thuan.

Meanwhile, Hung Thinh Land expects 2024 will be a year of growth recovery for the group with the continued development of new projects in HCMC and Quy Nhon town, Binh Dinh province.

Nguyen Van Hau, CEO of Asian Holding, shared that this year, the company will develop three projects in Dong Nai and Binh Phuoc provinces, including 800 products of commercial housing, social housing, and land plots.

Asian Holding targets year-on-year growth of 120% in revenue and 150% in profit in anticipation of the recovery of the real estate market. In addition, it is also recruiting quality personnel to expand its operations.