The mismatch between supply and demand causes land prices in Thuan An city to increase sharply

The apartment is overwhelming, the real demand is left open

Savills Vietnam data shows that in 2021, Binh Duong’s primary supply of apartments is 5% higher than HCMC and 42% more transactions than HCMC. The future supply of apartments is expected to reach 48,000 units in Binh Duong by 2024, of which Thuan An and Di An account for 83% of the market share.

“The land fund in Ho Chi Minh City is getting narrower and narrower, so the current investors are expanding to neighboring provinces. Binh Duong continues to be the successor and the next destination for the apartment market“, said Ms. Vo Thi Khanh Trang, Deputy Director of Research, Savills Vietnam.

According to Savills, the average apartment price in Thuan An in 2021 is 40.8 million/m2 and the highest level recorded by DKRA is 49.1 million/m2.

While the supply of apartments is very abundant, the selling price skyrockets year by year, according to the survey, the supply of land houses and well-planned land projects in the center of Thuan An city is very small, the supply of land plots is very small. here mainly from secondary transactions or land plots of individual households.

Some large-scale land plot projects in Binh Duong are in areas where there are still many land funds such as Tan Uyen, Bau Bang, Ben Cat, etc. This has caused Thuan An to fall into a serious supply-demand mismatch.

Because, according to Savills statistics, the urbanization rate in Binh Duong is very fast with the rate of 84% in 2020 (HCM City is 79%). The annual population growth rate in 2020 is 5.06% compared to 2.1% in HCMC. According to statistics of batdongsan.com.vn, every year Binh Duong needs more than 7 million m2 of housing, nearly twice as high as Ho Chi Minh City. At the same time, the province’s immigration rate accounts for more than 50%.

With the highest population growth rate in the country, especially Thuan An, which plays the role of the largest city in the province, is under great pressure from real housing demand. And undeniably with the concept of “eating well and wearing durable” has gone deep into the subconscious of Vietnamese people, land is the first choice of the people.

The absence of a land project has caused the market to lose a large number of potential customers and most of them have real, non-speculative housing needs. However, the reality of scarcity is also the main reason that pushes land plots to continuously establish new price levels.

For investors, this is a good opportunity in case a new supply appears in the market. A report by batdongsan.com.vn on the Binh Duong market shows that, in the period from 2018 to 2020, while the price of gold increased by 51%, apartments increased by 68%, land plots increased by 95%. This is a testament to the attractiveness of the real estate market when profitability is always leading in all segments.

An Residence – The solution to the scarce supply

Similar to Ho Chi Minh City, Thuan An’s land fund is facing exhaustion, no longer has a large enough area to develop large-scale land-house projects or land plots. Therefore, in the coming years, apartments will continue to dominate the market. Drip land fund has caused the Ho Chi Minh City land plot segment to rebound rapidly and Thuan An is also observed by experts to have a similar situation.

At the beginning of this year, the market suddenly appeared residential – commercial area An Residence of investor Le Phong. The project owns an expensive location in the heart of the city center, right in front of 22/12 street – Thuan An Hoa, adjacent to Vsip1, Aeon Mall, Song Be golf course, .. so it is very convenient for residents to go to work. Or enjoy all the modern and classy amenities within 5 minutes.

According to information from DKRS – a marketing business unit, the investor has prepared many years ago to acquire this “golden” land fund. This is not only the only well-planned land project launched in Thuan An earlier this year, surpassing the project, it also possesses a safe legal status when completing the construction permit and completing the infrastructure 100. % and ready the name of the red book for customers.

After many “ghost” projects were prosecuted continuously in Ho Chi Minh City and Binh Duong, having legal transparency is a huge plus to help the project increase its value. Possessing many strengths, but according to DKRS, the project has a price of only 36 million per m2, lower than the average price of an apartment.

This “deviation” has created a fever that pulls investors to constantly learn and order products. However, the project’s supply is very limited, just over 200 products are not enough to meet the abundant demand.

With the situation of supply not meeting demand, according to individual investors, only after the end of the primary sale, the secondary price of An Residence will grow strongly in the short term. In the long term, this segment in big cities like Thuan An and Di An is forecasted by experts to still be a safe profitable channel due to increasing housing pressure, economy, and urbanization in the central core area. thrive while supply continues to trickle.