South Real Estate Market Only Traded 7 Land Lots in the First 2 Months of the Year

The real estate market in Ho Chi Minh City and its surrounding area has seen limited activity in the first two months of 2024. DKRA, a leading real estate company, recently released a report stating that the region had only one new project and three projects entering the next phase of sales during this period. This resulted in 138 plots being introduced to the market, a 14% decrease compared to the same period last year.

Decreased Consumption and Average Price

Despite the introduction of new properties, the consumption rate witnessed a decrease of 25%, with only 7 plots being sold. The transactions mostly involved properties with an average price of around 21.5 million VND per square meter.

Key Locations and Price Ranges

In terms of geographical distribution, Long An accounted for the majority of the supply and consumption in the market, with a rate of 60% and 58% respectively. Binh Duong and Dong Nai had supply rates of 25% and 15% respectively. On the other hand, Tây Ninh, Bà Rịa – Vũng Tàu, and Ho Chi Minh City did not see any new supply.

The price ranges for new land lots were as follows: 17.2 – 54.9 million VND per square meter in Long An, 14.5 – 16 million VND per square meter in Binh Duong, and 12.3 – 13.7 million VND per square meter in Dong Nai.

Stable Primary Market Prices

Overall, the primary market prices did not fluctuate significantly compared to the previous sales period. In order to stimulate demand, developers continued to implement attractive policies such as extended payment terms and profit guarantees.

Secondary Market Trends

The secondary market has remained relatively stable compared to the end of 2023. The average liquidity level and completed infrastructure and legal documentation have attracted investor attention.

DKRA predicts that the upcoming months will see a surge in new supply, mainly concentrated in the areas bordering Ho Chi Minh City.

According to Batdongsan.com.vn, the real estate market in Bà Rịa – Vũng Tàu has shown positive signs of recovery in the first month of 2024. This rare trend in the southern region indicates an increase in property demand.

The report from Batdongsan.com.vn states that although the number of properties for sale in Bà Rịa – Vũng Tàu decreased by 15%, the demand in the province increased by over 5% in January 2024. Land plots experienced the strongest growth in transaction demand during this period, making it the best-performing segment in terms of purchasing power. Conversely, apartments, private houses, and resort villas remained relatively quiet.

The demand for land plots in Bà Rịa – Vũng Tàu increased by over 16% in the first month of the year. Similarly, the interest in private houses in the province grew by 2.8% compared to the previous month. Resort villas did not witness significant changes in demand, while the demand for apartments decreased by 11%.

Notably, the increased interest in properties was mainly concentrated in the Đất Đỏ district. According to data from Batdongsan.com.vn, the demand for real estate in Đất Đỏ increased by 68.7% in January, mostly focused on residential and divided land plots in the price range of around 600 million to 1.2 billion VND with small sizes.

Châu Đức district also experienced an 11.2% increase in demand for land plots during the early months of the year. Bà Rịa and Xuyên Mộc saw relatively minor fluctuations in land plot demand, with increases of nearly 3% and 4.4% respectively.

In contrast, the demand for real estate in the areas of Vũng Tàu, Phú Mỹ, and Long Điền has not shown a clear recovery. The search for properties in these three areas decreased by an average of 2-7% compared to December of the previous year.

Timing for Land Plot Investment

According to Mr. Đinh Minh Tuấn, the Director of Batdongsan.com.vn in the Southern region, significant market changes are expected in the second and third quarters of 2024. The current period is still exploratory and waiting. Investors utilizing financial leverage should refrain from participating in the land plot segment at this time. However, for large investors with abundant capital, this period presents an opportunity to seek potential investments.

“Now is an opportune time to search for investment land plots. However, investors should choose plots with reasonable prices, below 2 billion VND, complete legal documentation, and full ownership. This group is expected to witness increasing transactions in the near future.”