Active construction kickoffs, project introductions

In the early months of 2024, several apartment and land projects have been introduced to customers in HCMC and Binh Duong. One notable example is the Phu Dong SkyOne apartment complex, recently brought to market by Phu Dong Group in Di An City, Binh Duong Province. This project is expected to offer 780 apartments ranging from 42 to 72 square meters, with expected selling prices ranging from VND1.4 billion to VND2.2 billion per unit - catering to the preferences of the majority of potential buyers.

An Gia Group has also planned to unveil The Gio Riverside project in Binh Duong Province, comprising approximately 3,000 apartments adjacent to Vo Nguyen Giap Avenue and the Metro Line No.1 Ben Thanh – Suoi Tien, targeting homebuyers from HCMC and neighboring areas like Binh Duong and Dong Nai.

Concurrently, the developer continues to open the sale of remaining units in The Standard detached townhouse project in Tan Uyen City, Binh Duong, offering immediate land ownership rights and house receipt with a 10 percent payment. Similarly, the developer of the Phuong Truong An No.6 project in Phu Giao District, Binh Duong Province, is expediting legal procedures for the market launch. Covering 41.9 hectares with 2,760 land lots and an estimated population of 6,991, this project will become a metropolis in Northern Binh Duong Province.

Meanwhile, in HCMC, Gamuda Land has initiated the construction of six towers ranging from 37 to 39 floors, offering nearly 2,000 apartments in An Phu Ward, Thu Duc City. Nam Long's Mizuki project in Binh Chanh District is also gearing up for the next development phase. In the Eastern part of the city, Masterise Homes is poised to commence construction on a high-rise subzone within The Global City urban area.

Notably, in the Southern region of the city, Phu My Hung has recently launched The Aurora project, featuring 95 apartments and seven shops at the ground level. This project is a rare apartment development in HCMC that has obtained construction permits in the current market.

The Vietnam Association of Realtors (VARS) revealed that approximately 15,000 new apartment units will be introduced in the first six months of 2024 across HCMC and Binh Duong, with existing inventory not yet taken into account.

Additionally, Savills Vietnam forecasts a fourfold increase in the number of newly launched apartments in HCMC compared to the previous year in 2024. Looking ahead to 2026, the market is expected to witness the launch of approximately 116 projects, delivering a total of 40,800 new apartment units.

Market brightens gradually

Data from Batdongsan.com.vn showcases a 66 percent surge in search for real estate sales nationwide in January 2024 compared to the same period in 2023, with a 52 percent increase in the number of real estate listings. In HCMC, search demand rose significantly by 71 percent to 73 percent for land plots and project land, and by 59 percent for apartments. Additionally, the mindset of real estate buyers and sellers has become less cautious compared to 2023. The real estate market sentiment index in the first months of 2024 increased by 3 points compared to the second half of 2023.

In a recent report, VNDirect Securities Company evaluates that positive signals are emerging for the real estate sector following market support policies introduced in early 2023. It is anticipated that real estate supply will see a notable increase from 2024 onwards, particularly with Land Law 2024 expected to resolve legal obstacles that have been a primary bottleneck for many ongoing real estate projects.

Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, noted that numerous developers are resolute in accelerating sales in early 2024. This proactive approach stems from the anticipation that waiting until 2025, when the amended Real Estate Business Law takes effect, may present greater challenges and require more time for fund collection. Under the revised law, developers will only be permitted to collect deposits of up to 5 percent of the selling price for residential properties and construction works to be developed in the future. Only after fulfilling all sale obligations can they collect an additional 25 percent.

A survey of business operations conducted by the HCMC Union of Business Association (HUBA) indicates that the real estate market has exhibited encouraging signs in the early months of 2024. Accordingly, large enterprises have restructured their debts to enhance financial stability, either through early repurchases of bonds or negotiations with creditors and banks to extend loan terms, thus easing cash flow constraints.

Mr. Nguyen Phuoc Hung, HUBA Vice Chairman, notes that the government's efforts to alleviate challenges have yielded results. Local authorities' interventions in resolving legal issues and loan interest rate reduction have facilitated access to capital for many projects. As a result of the real estate market's resilience, other interconnected sectors such as construction, steel, and the building materials market have also begun to recover and show promising signs of improvement.