Ho Chi Minh Confident Real Estate Market Can Recover Soon

Ho Chi Minh City reopens its economy after many months of prolonged social distancing, the real estate market is expected to gradually recover. That belief is strong in both real estate businesses and investors. Because during the quarantine period, the real estate market has been hurt a lot.

It is predicted that the real estate market cannot recover completely in the last 3 months of the year, but the demand and supply capacity of the market can recover about 30-50% compared to before the epidemic.

In a recent report, DKRA Vietnam has forecast that real estate market segments may recover slightly in the fourth quarter of 2021.

Specifically, in the land plot segment, the new supply may increase compared to the third quarter of 2021 and will mainly focus on the markets in neighboring provinces such as Long An, Dong Nai and Ba Ria – Vung Tau. Particularly, Ho Chi Minh City continues to be short of new supply.

Ho Chi Minh City

The overall demand of the market is likely to recover and increase at the end of Q4 when social distancing measures are eased. Projects with completed legal and synchronous construction infrastructure and clear progress continue to attract the attention of customers. The secondary price level did not have much change compared to the previous quarter, the sideways trend still continued.

In the apartment segment, new supply may also increase slightly compared to the third quarter. In Ho Chi Minh City, the new supply can reach about 2,500 – 3,500 units. Supply in Binh Duong with about 1,000 – 1,500 units was put on the market. The remaining localities have modest supply with about 500-800 units. Long An alone is in short supply of new apartments. The overall demand of the market will have a positive recovery at the end of Q4. Especially in markets like HCMC.

Grade B and Grade A segments continue to account for a large proportion of newly launched supply. The market continues to lose the supply of Grade C apartments. In the city. In Ho Chi Minh City, the East area continues to account for a large proportion of the new supply of the whole market. The primary and secondary price levels did not have too many fluctuations in the year-end period.

With villas, the supply may increase in the fourth quarter, if social distancing measures are completely eased.

Dong Nai is forecasted to continue to lead the new supply of the whole market with about 700 – 1,000 units. New supply in Long An equivalent to Q2 fluctuated at 300 – 500 units. New supply in Binh Duong fluctuates between 200-300 units. New supply in HCMC increased slightly compared to Q2/2021 and fluctuated at 200-300 units.

The overall demand of the market will have certain recovery at the end of Q4 if the Covid-19 epidemic situation is under control.

In Ho Chi Minh City, the East area continues to account for a large proportion of the total new supply market. For the neighboring province, the attention of customers is focused on projects located in large urban areas with a scale of up to 100 hectares, which are well planned by large and reputable investors. This is also the driving force for the market to grow in the near future.

According to DKRA, the secondary market’s trading situation did not change much compared to the third quarter. The secondary selling price level did not change much, if the epidemic situation persists, it is likely that the market’s price will decrease.

According to the forecast of the Vietnam Real Estate Brokers Association, in October 2021, many big cities and many localities across the country will basically complete vaccination for those aged 18 years and over, along with screening and isolating infected people, Creating many green safe zones. It is also the time for localities to gradually lift restrictive measures against the epidemic. At the same time, reactivate production activities and economic development in the context of the new normal. And that includes real estate project development and real estate transaction market.

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