MARKET REPORT Q1 2024 RESIDENTIAL REAL ESTATE HO CHI MINH CITY - BINH DUONG - DONG NAI - LONG AN

A. ECONOMIC OVERVIEW & INFRASTRUCTURE​

The real estate market in early 2024 has had many positive changes, strengthening confidence for investors as well as real estate businesses.
Let's take a look at some overview of the economy and infrastructure of the four important areas that are HCMC, Binh Duong, Dong Nai and Long An. With many bright spots, modern infrastructure and favorable business environment, the area is attracting considerable interest.

HIGHLIGHT POLICY​

- Congress Officially Passed Land Law And Credit Institutions Law

Adopted on January 18, 2024 – issued on January 1, 2025. Two pieces of legislation bring notable changes:

(1)The revised land law regulates land prices, price determination methods, land allocation and land lease mechanisms

(2) The Law on Credit Institutions tightens cross-ownership of shares in banks, limits credit limits for customers to no more than 15% of the bank's equity capital, and regulates the handling of bad debts.

- 05/11/2024 - 30/03/2024: Real estate loan interest rate reduced to 5% - 6% applicable for the first 6 - 36 months (~2% dropped compared to the end of 2023)

INFRASTRUCTURE UPDATE

- APPROVAL ON THE CONSTRUCTION PLAN OF CAT LAI BRIDGE (15/03/2024)

Plan to build Cat Lai bridge in the period 2025 - 2030 to replace the existing ferry route. Approve the survey, design and cost estimate tasks to prepare a Pre-feasibility study report to build Cat Lai bridge.

- NGUYEN VAN LINH INTERSECTION

On February 3, 2024, the intersection of Nguyen Van Linh - Nguyen Huu Tho will be temporarily closed to make the middle part of the underpass for about 240 days. (Expected delivery Q4/2024).

- AN PHU INTERSECTION

Achieved 40% of the construction volume with 4 packages: Ba Dat bridge, underground tunnel on Mai Chi Tho Street and Giong Ong To Bridge. It is expected that the intersection will be closed on April 30 to complete the underpass section.
 

B. REAL ESTATE MARKET - LANDED HOUSE

MARKET OVERVIEW 

Average selling price in Q1.2024 in 4 areas Ho Chi Minh City - Binh Duong - Dong Nai - Long An:

• HCMC: 146.8 Mil/m2, down 3% compared to Q4.2023
• Binh Duong: 41.2 Mil/m2, down 0% compared to Q4.2023
• Dong Nai: 62 Mil/m2, down 9% compared to Q4.2023
• Long An: 27.6 Mil/m2, down 0% compared to Q4.2023

Total units sold in the first 3 months of 2024 in 4 areas Ho Chi Minh City - Binh Duong - Dong Nai - Long An:

• HCMC: ~50 units sold
• Dinh Duong: ~12 units sold
• Dong Nai: ~80 units sold
• Long An: ~12 units sold

LANDED HOUSE SUPPLY Q1.2024​
- HCMC: There is no new supply for sale in Q1.2024. The supply of landed houses is mainly from the remaining basket of projects such as The Sholi, Classia, Global City, The Rivus. Currently, developers are offering extended payment policies such as paying 30% to receive temporary housing for business purposes to attract investing buyers and increase market liquidity;

- Dong Nai: Currently, many projects have legal problems that affect customer psychology, leading to a situation of liquidation or selling at a loss in the market. Eco Village Saigon River project in Nhon Trach launched an additional ~40 Units and absorption rate is recorded of ~60% compared to the project's supply in Q1.2024.
- Binh Duong: There is no new supply launched in Q1.2024. The supply of landed houses mainly comes from the remaining basket of projects such as Phuoc Dien Midtown, Artisan Park, The Standard, Phuc An Ashita,...Two foreign developers in the market are Gamuda Land and Capitaland. Sycamore by Capitaland is receiving great attention from investors in the Binh Duong market.
- Long An: There is no new supply in Q1.2024. The supply of landed house is mainly from the remaining inventory of the Waterpoint project. Long An market is made up of mainly domestic developers such as Nam Long, Tran Anh Group, Sea Holdings and in the future there will be the appearance of Phu My Hung... 

B. REAL ESTATE MARKET APARTMENT
Let's take a look at the situation of the apartment market in the real estate sector of Ho Chi Minh City, Binh Duong, Dong Nai and Long An in the first 3 months of 2024. The real estate market at the beginning of the year had many positive changes when apartments for living were the segment with the greatest attraction.

MARKET OVERVIEW​

Total number of apartments sold in Q1 2024 in 4 areas Ho Chi Minh City - Binh Duong - Dong Nai - Long An:

- HCMC: ~605 units sold
- Binh Duong: ~310 units sold
- Dong Nai: ~15 units sold
- Long An: ~100 units sold

Average apartment selling price in Q1.2024 in 4 areas Ho Chi Minh City - Binh Duong - Dong Nai - Long An:

- HCMC: 52.9 Mil/m2, 1% compared to Q4.2023
- Binh Duong: 30.7 Mil/m2, 2% compared to Q4.2023
- Dong Nai: 33.7 Mil/m2, tăng 5% compared to Q4.2023
- Long An: 20.7 Mil/m2, giảm 3% compared to Q4.2023

APARTMENT SUPPLY Q1.2024

- HCMC: The Privia and Aurora are newly launched project in the mid-end and high-end segment. Currently, developers are offering extended payment policies & interest rate support after receiving the house to attract buyers to stay and make long-term investments. The Eastern area still accounts for the most supply HCMC market. The Eaton Park project is also one of the prominent recent projects expected to launch about 2,000 units on the market.
- Binh Duong: Supply is mainly concentrated in Di An, Thuan An and Thu Dau Mot. Some outstanding projects in the Binh Duong market recently include: Picty Sky Park launched the third phase, A&T Sky Graden, Phu Dong Sky One,...In addition, it is expected that in the future there will also be participation of some large developers such as Phu My Hung, Capitaland,... this will create a vibrant market.
- Dong Nai: Fiato Nhon Trach is the only newly launched project this quarter. However, only 15 units are recorded for sale in this quarter.
- Long An: There is no new supply in Q1.2024. The supply is mainly from the Ehome Southgate project’s primary stocks. In 2024, the market expects the launch of Destino Centro project of by Seaholdings with a total supply of more than 2,000 units.   

C. FUTURE SUPPLY​
LANDED HOUSE ​
- Future supply mainly comes from developers such as Masterise Homes, KeppleLand, Gamudaland, and Khang Dien located in the East and South areas, accounting for about 60% of Ho Chi Minh City's future supply.
- Binh Duong market has the participation of foreign developers such as Gamuda Land and Capitaland, creating attractiveness for the market. The future supply of landed houses is mainly in Ben Cat and Thuan An;
- Future supply in Long An and Dong Nai will mainly come from domestic developers such as Novaland, Nam Long, Vinhomes, Ecopark, Tran Anh Group, ....
 
APARTMENT
- Ho Chi Minh City is expected to have new supply from foreign developers such as Masterise Homes, Capitaland, Gamudaland, Keppel Land accounting for about 70% of future supply in 2024. New supply focuses mainly on the high-end and luxurious segments;
- In Binh Duong market, the supply of apartment is expected to increase sharply, mainly in Thuan An, Di An and Thu Dau Mot areas.
- Long An record that there will be new supply from investor Seaholdings with the Destino Centro project with a total supply of more than 2,000 units.
- Dong Nai does not record new future supply in the short term. The whole Dong Nai market is focused on developing landed house.

The report on residential real estate markets in Ho Chi Minh City, Binh Duong, Dong Nai and Long An in Q1 2024 shows positive changes from the market. Focused infrastructure, favorable business environment and competitive prices facilitate investment in real estate. With attractive development potential and profit opportunities, the residential real estate market in this area is attracting interest and becoming an attractive option for those who desire a quality living space and sustainable investment.