Real Estate Segments in Ho Chi Minh City Simultaneously Increase in Price

According to a report by DKRA Group on the real estate market in Ho Chi Minh City and its surrounding areas, the land segment saw an 18% increase in primary supply in the first quarter of 2024 compared to the end of 2023. However, the overall market demand remains low, with a decrease of around 40% compared to the previous quarter.

The majority of transactions, over 80%, were concentrated in Binh Duong and Long An, with an average price range of 16.4 – 22.2 million VND per square meter. The primary price level has remained relatively stable since 2023, with prices ranging from 14.5 – 23.5 million VND per square meter.

Secondary market prices saw an increase of around 1% – 3% compared to the end of the previous year. There have been positive liquidity changes after the Lunar New Year, with transactions focused on projects that have completed infrastructure, legal procedures, and are developed by reputable investors in the market.

In the apartment segment, there were approximately 12,967 units available from 122 primary projects, a 9.7% decrease compared to the previous quarter, but similar to the same period in 2023. The main markets for distribution were Ho Chi Minh City and Binh Duong.

Ho Chi Minh City leads the overall market in terms of supply, accounting for 61.2% of the total supply. The majority of new supply in the quarter came from grade A projects in the Western and Southern regions. Market liquidity has seen clear improvements since the Lunar New Year. Transactions mainly occurred in mid-range projects with complete legal procedures, rapid construction progress, convenient connectivity to the city center, and prices ranging from 40 – 55 million VND per square meter in Ho Chi Minh City and 30 – 35 million VND per square meter in Binh Duong.

Primary prices in some projects increased slightly by 2% – 5% compared to the end of 2023, with various discount policies for fast payments, principal deferment, and loan interest.

In the townhouse/villa segment in Ho Chi Minh City and its surrounding areas, there was an 11% and 43% increase in primary supply and consumption, respectively, compared to the previous quarter. However, the resort real estate segment experienced a significant decrease in both supply and consumption compared to the same period in 2023.

Market demand remains low, but there have been positive changes compared to the end of 2023, with transactions primarily occurring in the under 10 billion VND per unit price range. Binh Duong and Ho Chi Minh City accounted for over 80% of total primary consumption in the quarter. The primary price level remains high and stable, with an average price range of 4.1 – 27.8 billion VND per unit.

Some projects have adjusted their prices and sales policies to adapt to the current market situation. In the second-market cities, average prices have increased by about 2% – 4% compared to the end of 2023. Market liquidity has improved, and transactions mainly occurred in projects with completed infrastructure, legal procedures, high buyer demand, and good connectivity.

DKRA believes that along with positive signs in the economic and social sectors in the first quarter of 2024, low credit interest rates, favorable legal policies, and infrastructure development are expected to lay the foundation for the real estate market’s recovery in the near future.

According to DKRA Group’s forecast, there will be further improvements in new supply in the land segment in the second quarter of 2024, ranging from 550 to 650 plots, mainly concentrated in the surrounding areas of Ho Chi Minh City. Market liquidity is expected to continue increasing.

Binh Duong, Dong Nai, and Long An are expected to be the leading markets in terms of supply and primary consumption in the second quarter of 2024. The primary price level is expected to remain stable. The second-market cities will likely see improvements in liquidity and sales prices.

In the apartment segment, new supply is forecasted to increase compared to the first quarter of 2024, with approximately 2,000 – 3,000 units, mainly concentrated in Ho Chi Minh City and Binh Duong. Grade A apartments will continue to dominate the market in Ho Chi Minh City, while grade B and C apartments will lead in the bordering provinces.

Market demand is expected to show positive changes, and the primary price level may continue to increase slightly due to input cost pressures. Liquidity in the second-market cities is also expected to improve, along with positive changes in sales prices. The forecast for new supply in the townhouse/villa segment suggests an improved market performance compared to the first quarter of 2024, with approximately 500 – 600 units.

Binh Duong, Long An, and Dong Nai are expected to lead in this segment. The primary price level is expected to remain stable. To stimulate the market’s demand, developers are flexible in adjusting payment methods and sales policies according to the actual market conditions.

There is a potential for increased interest in properties priced between 3 – 5 billion VND per unit in the neighboring areas of Ho Chi Minh City. The condotel segment is forecasted to see a slight increase in supply compared to the first quarter of 2024, with approximately 100 – 200 units, mainly concentrated in Ba Ria – Vung Tau and Quang Ninh.

Meanwhile, there will be limited changes in supply for vacation villas and resort townhouses compared to the previous quarter, with an estimated supply of 100 – 150 vacation villas and 80 – 100 resort townhouses.

Overall, market demand is expected to remain low, with a continued downward trend until the end of 2024. The primary price level will remain stable, with limited short-term fluctuations. Various policies such as discounts, interest support, principal deferment, and lease guarantees will continue to be widely applied in the upcoming quarter.

Source: Business Today