Ho Chi Minh City – The limited supply of housing (first-time investors) and high prices are forcing many homebuyers to seek opportunities in older projects.

To purchase a 65-square-meter apartment in the southern area of Ho Chi Minh City, with a price range of around 3 billion Vietnamese dong, Ms. Lien, who works at a publishing company in District 3, currently has only one option: to buy a secondary house (investor-purchased for resale) as there are no new projects that meet her criteria.

Ms. Lien stated that there are three ongoing projects in the southern area, one of which is priced at over 90 million dong per square meter. The other two 

projects are located on the outskirts of Nha Be and Binh Chanh districts, with prices exceeding 55 million dong per square meter excluding taxes. “After searching extensively, I couldn’t find any suitable units to buy, so I had to switch to recently completed projects,” she said.

(Real estate in the Eastern part of Ho Chi Minh City, the Thủ Thiêm Peninsula area, Thủ Đức City.)

Mr. Quoc Quang, a small business owner in District 10, also shared his 7-month journey of finding a house. With a requirement of a radius not exceeding 12 km from the city center and a price range of 3.5 billion VND or less, he was advised by real estate agents on 6 ongoing projects. However, four of these projects were still lacking legal documentation, while the remaining ones were either beyond his financial capacity or had small sizes unsuitable for his family of 5. In the end, he had to resort to buying an old apartment.

“Never before has it been so difficult to find a new apartment in Ho Chi Minh City. In the past, there were dozens of projects launched each year, but now, nearing the end of the year, there are only 3-4 new projects, and the prices are high,” he said.

According to VnExpress, many people with limited finances tend to prioritize buying affordable primary homes because they are cheaper and come with various sales support policies such as preferential interest rates, installment payments, and principal deferment, which help alleviate financial pressure. On the other hand, if they were to buy a secondary apartment, they would have to make full payment within a short period of time to receive the handover.

However, the trend of buying primary homes is currently declining due to the limited options available in the market. According to a report from Batdongsan, while 68% of homebuyers chose to purchase primary real estate in the first quarter, this number decreased to 55% in the second quarter. Similarly, the number of customers looking for secondary market homes increased from 33% in the first quarter to over 45% in the second quarter. This increasing demand for secondary real estate is not surprising, as the primary market has been lacking supply for a long time.

In fact, over the past three years, the difficulty in obtaining permits has resulted in very few new projects being implemented in Ho Chi Minh City. The scarcity of supply has also driven up housing prices. Both investors and homebuyers have limited options in the primary market.

According to a report from real estate consulting firm CBRE Vietnam, in the first half of the year, the city only had about 1,700 newly launched apartments. The first quarter accounted for around 500 units, while the second quarter saw an additional nearly 1,200 units in the Eastern and Southern regions. This number is only half of previous years’ figures and only a tenth compared to the period before Covid-19. 80% of the primary supply belongs to the high-end segment, with prices starting from 60 million VND per square meter.

In addition to the limited supply, the prices of primary apartments in Ho Chi Minh City are becoming increasingly expensive. In the second quarter, the price of apartments in the city reached over 63 million VND per square meter. More than 70% of the newly launched supply has high primary prices, 2-3 times higher than the average market price.

JLL Vietnam also acknowledges that there are not many options for homebuyers in the primary market, whether in the affordable or luxury segments. In the past quarter, the city only had 100 approved apartments for sale and one new project (around 900 units) for pre-sale. In the first half of the third quarter, the market saw the addition of 3 projects currently accepting bookings, with prices expected to be above 60 million VND per square meter (including taxes and fees).

Mr. Vo Hong Thang, Deputy CEO of DKRA Group, stated that recently, the liquidity of apartments in Ho Chi Minh City has been focused on older projects that have been handed over and have red books, priced at around 3 billion VND or less. These projects are typically located in suburban districts or older condominiums that are less than 10 years old. The surge in demand for buying older condominiums is growing in the context of a shortage of primary housing in the market.

The concentration of purchasing power in the secondary market has led to localized price increases in some completed projects with prime locations and completed legal procedures. According to JLL Vietnam, the secondary market prices of apartments in Ho Chi Minh City have increased by 5% quarterly and 6.4% annually. Data from CBRE Vietnam also indicates a 4% increase in secondary market prices in the second quarter. Previously, areas far from the city center experienced losses, but now they are seeing a 2-3% increase in secondary market prices. According to a study by Batdongsan, in the past two months, secondary apartment prices have increased by about 4-5%. Compared to the same period last year, many projects in the city center have recorded growth rates of 12-15%.

Regarding the forecast for the housing market in Ho Chi Minh City in the coming months, Mr. Le Hoang Chau, Chairman of HoREA, stated that the city currently has 148 projects facing legal conditions that cannot be implemented. In the second half of the year, if these obstacles are resolved, the supply will be unlocked. Conversely, if the market continues to face a shortage of project supply, there will be a scarcity of commercial housing and limited opportunities for homebuyers.

Ms. Duong Thuy Dung, Senior Director of CBRE Vietnam, also believes that the shortage of supply is likely to persist until the end of this year and the first half of next year. The market will become more open in the second half of 2025 as new policies gradually take effect.

“The shortage of supply while the demand for housing remains high is likely to drive up prices of condominiums in Ho Chi Minh City in both the primary and secondary markets,” she concluded.

According to the VNEXPRESS.