Real Estate Market in Southeast Region of Vietnam: Only 1 out of 100 Land Plots Sold
The real estate market in Ho Chi Minh City and the surrounding areas of Binh Duong, Dong Nai, Long An, Ba Ria – Vung Tau, and Tay Ninh in the first quarter of 2024 has been analyzed in a report released by DKRA Group. According to the report, the primary land segment witnessed the introduction of over 6,200 land plots in 78 projects, representing a 18% increase compared to the fourth quarter of 2023. However, the sales volume only reached 70 plots, which is just over 1% and a decline of 42% compared to the previous quarter.
Low Demand in the Land Segment
Vo Hong Thang, the Director of Consulting and Project Development Services at DKRA Group, stated that the overall demand for land plots remained low. The majority of transactions occurred in Binh Duong and Long An provinces, with prices ranging from 16 to 22 million VND per square meter.
Moderate Sales in the Apartment Segment
In the apartment segment, the market in Ho Chi Minh City and the surrounding areas witnessed a 32% increase in supply with approximately 13,000 units in the first quarter. However, the sales volume reached only around 1,800 units, accounting for around 14% of the total supply. The price range of the most sought-after products ranged from 30 to 55 million VND per square meter.
Limited Demand for Townhouses/Villas
In the townhouse/villa segment, there were 75 projects with over 4,300 units, representing an 11% increase compared to the fourth quarter of 2023. However, the sales volume only reached 130 units, which is around 3% of the total supply.
Outlook for the Second Quarter of 2024
Looking ahead to the second quarter of 2024, DKRA predicts that the market will see positive signs of recovery. The land segment is expected to experience increased supply and strong sales in Binh Duong, Dong Nai, and Long An provinces. In the apartment and townhouse/villa segments, Ho Chi Minh City and Binh Duong province are projected to lead in terms of both supply and demand.
Vo Hong Thang also noted that the real estate market in Ho Chi Minh City and the surrounding areas will benefit from low interest rates, newly passed laws, and effective implementation. Additionally, developers are adapting to market conditions and investor preferences by making necessary adjustments in infrastructure and sales policies.
“As we enter the second quarter of 2024, projects with convenient connections, completed infrastructure, and secure legal frameworks are expected to attract more customers,” said Vo Hong Thang.
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