Recently, a new administrative solution implemented has significantly shortened the real estate procedures in Ho Chi Minh City, which has pushed the supply up high after 2 quarters of scarcity. Many developers who own “well-located” land are now planning for new projects, bringing huge supply to the current gloomy market.
The end of 2019 seems to be an exciting time for the South area of Saigon as various new projects announced to be deployed. GS Nha Be Development Co. Ltd has just launched a new residential project, the second biggest project in South Saigon with the total area of over 350 hectares. Another real estate firm - Xuan Mai Corp will launch the second sale phase of Eco Green Saigon project (14,36 hectares) this August. A Singapore-based firm, Mapletree, took advantage of the positive trend to launch 237 units of its Oakwood Residence Saigon Project on Nguyen Van Linh Street.
Also on Nguyen Van Linh route, Tien Phuoc Real Estate Joint Stock Company has just launched the first phase of Senturia Nam Sai Gon project with a scale of 19.8 ha including 357 townhouses/ villas and 900 apartments. A project on Nguyen Luong Bang Street – The Q7 Boulevard will open for reservation in the following months. Its developer – Hung Thinh Corporation expects to launch another 400 villas and townhouses in District 9 by the end of this year. Sunshine Group said it will continue to sell new condos in other towers of Sunshine City project, located at Dao Tri Street, District 7.
The launch of new projects has added a huge number of apartments to the tremendous supply of HCMC market. (Photo: Phuong Uyen)
In the East part of HCMC, apart from big projects like Vinhomes Grand Park in District 9, which is planning for a sales of new zones after the success of the first one, another real estate giant also introduced a new project. It targets the high-end segment with over 2000 apartments located on Mai Chi Tho Street, District 2.
A recent survey conducted by Batdongsan.com.vn showed that the real estate market from now till the end of 2019 will receive a huge supply as new projects are launched. For example, Phuc Khang Group will launch project Rome by Diamond Lotus in District 2; Sea Holdings continue to sell 400 apartments at Fresca Riverside project in Binh Chieu ward, Thu Duc district; CT Group with the Metro Star project, which expected to launch by Q3/2019; and Dai Phuc with 22 luxury shophouses opening for sale along Song Trang canal in Van Phuc Urban Area. In addition, a number of other apartment projects in the East Saigon are also in the preparation stage and will be introduced to the market in the second half of the year.
The real estate market in quarter 3/2019 is expected to have at least 6,000-7,000 more units, which lead to a rise in both supply and demand in comparison to the previous quarter, according to data from DKRA Vietnam. In the townhouse/villa segment, the supply shows not much of a difference with fluctuation of 200-300 units. The East and South zones of HCMC, which account for a large proportion in supply and demand of this segment, may maintain a sideways trend.
CBRE Vietnam predicts a huge wave of supply coming up as over 10,000 Vinhomes Grand Park condos along with another 7,000 from a project launched at the end of 2019 in District 2, making the total supply of 23,000 condos. The future market supply in HCMC mainly comes from large real estate developers, both domestic and foreign, namely Vingroup, Keppel Land, CapitaLand, Phuc Khang Corp., Novaland, Dai Quang Minh, Dat Xanh, and Khang Dien.
Discussing the market demand and affordability, Mr Nguyen Hoang, Director of Research & Development Department at DKRA Vietnam, said the real demand for long-term accommodation and investment is still on a rise. Thus, he added, the products that meet this demand will have a better competitive advantage. He also shared that the local authorities have been planning to loosen licensing mechanism for the new project, which creates great confidence for real estate firms. This confidence along with positive sentiment of buyers will more likely lead to a market uptrend.
August of 2019 is the 7th Lunar month or Ghost Month in the Asian belief, also a “break time” for the real estate market as homebuyers are more cautious over purchasing a new home. On the flip side, the change of buyers’ perspective and massive incentives offered by developer have been gradually changing the situation.
