New projects ‘sold out’, buyers adjust cash flow

The lowest apartment supply in nearly 10 years

During the first quarter of 2022, the Ho Chi Minh City real estate market recorded only one existing project open for sale in the next phase with more than 800 products, this figure shows the number of new products offered to the market quarterly. record low in the past 10 years.

Explaining this, Ms. Pham Ngoc Thien Thanh – Deputy Director of Market Research and Development Consulting Division of CBRE Vietnam said that the negative impact of the licensing issue from 2019, the land fund is increasingly limited. The market’s narrow and cautious sentiment after experiencing two years of the epidemic led to temporarily limited supply in the short term.

However, experts believe that the prospect of positive supply will open up in the second quarter, but for the market to “rebound”, abundant products is not an overnight thing. Because the potential land fund in Ho Chi Minh City has now reached its limit, it is difficult to expand further, is it just waiting for the legal bottlenecks to be loosened and the acceleration of infrastructure in areas still “hibernating” “. This requires a delay of 3-6 months or even a few years.

Supply is tight and products are distributed in a trickle, so in the first quarter of 2022, CBRE Vietnam recorded the number of apartments sold only about 1,247 units. However, the absorption rate of new projects is calculated at 90%, showing that the housing demand in the market is still well maintained.

Commenting on the future market, according to Ms. Duong Thuy Dung, Senior Director of CBRE Vietnam, there are positive signals from infrastructure projects such as Thu Thiem 2 bridge, Long Thanh airport, and expressways. Long Thanh – Dau Giay, Ring Road 3 is the driving force behind the real estate market in Thu Duc City in particular and HCMC. In addition, the fact that investors are promoting land fund expansion shows the development orientation of the leading enterprises in the industry as well as the optimistic outlook of the market.

The strong prospect of the market is also recorded in a series of activities of the investor to prepare for the release of goods in the next quarters such as introducing new projects, taking reservations. These projects attract a lot of attention, especially high-end and luxury projects with good locations, located in densely populated areas and full of living facilities.

Cash flow moves to a reasonable “zone”

Few products, forecast short-term supply shortage has affected the general price level of the market. The average selling price on the primary market is currently at $2,390/m2 (about VND55 million), up 3.9% QoQ and 7.8% YoY. This price level is expected to continue to escalate in the near future.

Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn shared, once the land fund is scarce and the price of materials is increasing, the quality projects are not many in the market, so it is forecasted in 2 years even though Even having money is not easy to buy a spacious and valuable living space. This has affected the shopping psychology of both residents and investors, leading to the tendency of real estate relocation to inevitably focus on new urban areas such as Thu Duc City.

Located next to Ring Road 3 and facing the Dong Nai River, the Vinhomes Grand Park project becomes a potential megacity in Thu Duc City with a full system of closed utilities such as: Vincom Mega Mall, a public park, and a shopping mall. Green park up to 36ha, schools, hospitals, Vinbus traffic system, …

“A fresh living environment, close to nature so that children can study well and have a comfortable play space, every family member can rest and relax every day is what my family wants. extremely satisfied to live here,” shared Lan Huong – a resident of Vinhomes Grand Park.

Recently, Vinhomes investor has just launched the last apartment project in Vinhomes Grand Park called The Beverly Solari. With unique privileges, and the West Coast “Luxury Sky-living” lifestyle, The Beverly Solari is gaining a lot of attention from the market.

The Dinh