Vietnam Real Estate Market Navigating the Challenges of Buying New Apartments
The real estate market in Ho Chi Minh City has seen significant shifts, making it increasingly difficult to purchase new apartments. Limited supply and rising prices have made the search for new properties more competitive, driving many buyers to explore alternative options in the secondary market. Here’s a closer look at the current situation and what it means for potential investors and homebuyers.
Over the past three years, the city has experienced significant licensing issues, drastically reducing the number of new projects. In the first half of 2024, only 1,700 new units were launched—500 in Q1 and nearly 1,200 in Q2.
To put this into perspective, this is just 50% of the inventory seen in previous years and only 10% of what was available before COVID-19. A striking 80% of these units belong to the luxury segment, with prices starting from 60 million VND/m², and in Q2, the average price soared to over 63 million VND/m². This means most new apartments are now priced 2-3 times higher than the market average.
As a result, fewer buyers are opting for new developments. In Q1 2024, 68% of buyers sought primary market properties, but by Q2, that number dropped to 55%, as the limited supply and rising prices are pushing more buyers toward the secondary market. Concurrently, demand for resale apartments surged from 33% in Q1 to 45% in Q2.
With new projects scarce and expensive, the secondary market now presents more attractive opportunities for investors. Resale units in completed projects, particularly those in prime locations with finalized legal paperwork, offer strong potential for capital growth. For those considering real estate investments, the current environment suggests the secondary market offers better value and quicker returns than waiting for new developments.
Secondary Market Getting The Spot Light
To Explore the secondary market by our Hot Properties, you can have a look to the 2 Hot Listed Resale Options as below or visit our website: realtique.net
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