In the latest report, real estate services company Cushman & Wakefield forecasts that the 2024-2025 period is expected to impact the demand of the Ho Chi Minh City real estate market; and the “good time” for apartment investment value is also within these 2 years.
Abundant land fund is a strength of the city. Thu Duc (HCMC). Photo: Tuong Thuy
In the Eastern region, many key transport infrastructure projects have been and are being completed. Ring Road 2 and Ring Road 3 are important routes that will contribute to promoting socio-economic, urban and real estate development in this area. Ho Chi Minh City People’s Committee has just submitted to the City People’s Council to decide on the investment policy of the Ring Road 2 construction project, section from Phu Huu bridge to Vo Nguyen Giap street with 9,328 billion VND from the city budget.
Ms. Trang Bui, CEO of Cushman & Wakefield Vietnam, commented: “With the new legal framework taking effect in 2025, the market promises to recover strongly with a more stable absorption and business environment. more transparent and healthier”.
That’s because two important new laws on the real estate market have been approved: Law on Real Estate Business (amended) and Law on Housing (amended).
The first law includes highlights such as: Deposit to buy a house to be built in the future must not exceed 5% of the selling price; Real estate brokerage businesses only need one person to have a practicing certificate instead of two people as current law; Real estate brokers must have a real estate brokerage practice certificate and must practice in a real estate service enterprise; publicize information about real estate and real estate projects put into business; and many other changes to real estate business contracts.
Similarly, the second law also includes many new contents such as: Investors are exempt from land use fees and land rent for the entire land area of social housing projects (NOXH); The investor is entitled to a maximum profit of 10% of the total construction investment cost for the social housing construction area; Adding two groups of beneficiaries to social housing support policies; Within 5 years, the buyer or lease-purchaser who has paid in full to buy social housing can only resell it to the social housing investor or subjects eligible to buy social housing at a maximum selling price equal to the selling price in the contract. Buy and sell with investors.
Also in the report on Ho Chi Minh City, Cushman & Wakefield company said that the East, South and West areas will provide the main apartment supply from 2024 to 2026, and it is expected that 27,000 apartments will be offered for sale. market during this period.
Forecast for distribution of new apartment supply in 2024-2026 by region in Ho Chi Minh City. Source: Cushman & Wakefield.
In addition, the East and South areas (including Nha Be district) will be the main supply sources in the Ho Chi Minh City townhouse segment. In particular, it is forecast that Thu Duc City will exploit the highest supply of townhouses in the future coming from the available land fund and rapidly developing infrastructure network. A notable portion of the upcoming future supply is expected to come from medium-scale projects (about 200 units) and the next phases of existing urban projects.
Analyzing the apartment market, Ms. Duong Thuy Dung, CEO of CBRE Vietnam, pointed out the big difference in price. In particular, the average primary selling price in Hanoi is 53 million VND/m2, but in Ho Chi Minh City it is more than 61 million VND/m2. This price is equivalent to the apartment price in Ho Chi Minh City three years ago (before the Covid epidemic).
According to Mr. Tran Khanh Quang, General Director of Viet An Hoa Real Estate Company, apartment prices in Ho Chi Minh City are higher due to the better rental market and cumulative investment profits are still high, thus attracting investors. long-term investment.
According to analysts, although market liquidity is limited, with legal problems, shrinking land fund, increasing construction costs and large housing demand, apartment prices in Ho Chi Minh City are expected to continue. increase.
