Long-awaited project launches offer cheer

At the end of November, the Privia apartment of Khang Phuc Housing Investment and Trading launched with prices starting from $2,000 per square metres.

Some of Ho Chi Minh City’s key areas are flush with new ventures being introduced, photo Le Toan

The project is located in Binh Tan district and covers more than 1.8 hectares, providing about 1,000 products. This is also a rare complex open for sale at this time in Ho Chi Minh City, with a price considered reasonable for the middle and high-end segment.

Along with that, Nam Long Group introduced Flora Akari City apartment phase 2 products with prices from $1,875 per sq.m.

Also in November, CapitaLand Development (CLD) announced that it will be developing the high-end residential project, Lumi Hanoi.

Located on a prime site in the West of Hanoi, Lumi Hanoi has a projected total gross development value of approximately $760 million and a total land area of approximately 5.6ha. It is expected to begin construction in the next couple of months, and will comprise about 4,000 units across nine towers that will be developed in phases.

According to Ronald Tay, CEO of CLD Vietnam, the company holds a long-term view of its business in the country.

“Despite the uncertainties in the nation’s real estate sector, we remain confident of securing compelling investment opportunities by leveraging our almost three decades of on-the-ground experience and strong financial standing,” Tay said.

In addition, Masterise Homes also held a topping-out ceremony for the LUMIÈRE Boulevard in Grand Park in Thu Duc of Ho Chi Minh City. The enterprise has been handing over units of four more housing projects since November.

Another initiative, Emeria Vo Chi Cong, has currently built infrastructure and blocks of houses, expected to open for sale by the end of 2024.

The real estate market in localities is also showing positive developments. Last week, Phu Dong SkyOne in Di An town of Binh Duong province held its groundbreaking ceremony. This project has a scale of nearly 800 affordable apartments, which will be put on sale in 2024.

In Binh Duong, according to Bcons Group, the developer of Bcons Polygon, it will be completed by the end of the year. In the same area, Coteccons and Le Phong Group chose this month to start construction on The Emerald 68 after a period of legal delay.

The latest report from the Vietnam Association of Realtors (VARS) shows that the number of transactions is increasing over time. Specifically, the total transactions in the first, second and third quarters of this year were at 2,700, 3,700, and 6,000 respectively.

“The number is expected to continue to increase in the fourth quarter with a range of projects being launched. The reason they are well received is thanks to the good sales support policy from investors,” said Nguyen Van Dinh, chairman of VARS. “Along with that, the bank moved to lower loan interest rates to 7-9 per cent, the demand for real estate began to increase.”

Despite residential performance likely to remain subdued in the short term, recovery signs are being seen nationwide.

According to Giang Huynh, associate director and research head at Savills Vietnam, factors restraining the market may persist into 2024. These include difficulties in cash flow, the pressures investors are feeling to repay bond debts, low liquidity, and subdued buyer sentiment.

“However, we do expect recovery eventually given the government’s efforts to promote public investment, develop infrastructure, and enhance transparency in real estate,” Giang said.

Giang states that real estate in Ho Chi Minh City will recover first, followed by neighbouring provinces such as Binh Duong and Dong Nai.

According to Savills Vietnam data, in 2024, the future supply in Ho Chi Minh City will include more than 16,000 apartments and 2,000 villas and town houses. Neighbouring provinces like Binh Duong and Dong Nai, with large land reserves, will have more than 6,000 villas and town houses and over 9,000 apartments.

New law clears path for foreign buyers The new Law on Housing passed by the National Assembly will bring positive changes related to housing ownership of foreigners in Vietnam when it comes into effect in 2025.