In 2023, the real estate market in Ho Chi Minh City witnessed significant fluctuations. Many believe that these challenges will continue into the first half of 2024. However, there are also viewpoints suggesting that 2024 will mark a positive transformation in the current in Ho Chi Minh City real estate market. Let’s join SkyWorld Vietnam to follow the article below for an overview of new estate developments as well as predictions for the future of the Saigon real market in this new year.

Recovery segments are uneven

In early 2024, the real estate market in Vietnam is undergoing an important phase, showing positive signs after the challenges of the previous year. Although the recovery of various segments is still uneven, the market has overcome the toughest period and is returning to a stable state.

In the industrial real estate sector, it is expected to become more vibrant due to the activities of the FDI sector and the implementation of important infrastructure projects. The affordable housing and social housing segments are experiencing positive changes due to the appropriate product structure alignment with market trends. However, the high-end commercial housing segment will recover more slowly as demand has not yet surged. This implies a limitation on investment in this product line for this year.

For the land segment, tightening regulations on land subdivision and low liquidity in 2023 may prolong the recovery time in this segment. However, land plots could reverse course by the end of 2024, providing opportunities for investors with the right strategies.

Imbalance between Supply and Demand in Ho Chi Minh City Real Estate Market

In 2024, the imbalance between supply and demand will continue to be a major challenge for some real estate segments, especially social housing and high-end offices. Currently, the demand for social housing is high, although businesses are shifting their development to meet this demand, they still cannot keep up with the growth of demand. Therefore, the imbalance still exists in the social housing segment.

For the high-end office segment, many foreign investors view Vietnam as an alternative location in their supply chain diversification strategy. However, the shortage of high-end office buildings and ESG-certified buildings will affect their investment decisions and development in the Vietnamese market. The demand for office space will shift towards high-quality projects, creative spaces, and good operational services to enhance the quality of the environment and meet sustainability criteria. Therefore, investors need to clearly identify the needs of users to apply appropriate operational methods to increase revenue and occupancy rates. Although the office market in Vietnam is still relatively new, it is still a fertile land for investors with reasonable and correct strategies.

Difficulties and Challenges in Capital Sources

Entering 2024, the real estate market in Ho Chi Minh City in particular, and Vietnam in general, still faces one of the major difficulties, which is the thirst for capital from enterprises. Along with that, the growth of bank credit remains low, and difficult access to credit or cumbersome lending procedures are still negative phenomena that persist. Additionally, although interest rates have somewhat decreased, they are still relatively high compared to the capacity of businesses.

In this situation, there needs to be a great effort from enterprises to restore customer confidence and improve financial situations. The government may consider extending the validity of Decree 08/2023/NĐ-CP to support enterprises, create favorable conditions for bond issuance, and individual investment in 2024. The State Bank of Vietnam also needs to take strong measures to reduce refinancing pressure and promote new lending measures.

Apartment Buildings Shine in the Market

In 2024, apartment buildings are evaluated by experts as the most outstanding segment in the real estate market due to their ability to meet the practical needs of buyers. According to market surveys, 31% of both brokers and consumers believe that the first quarter of 2024 will be an important period marking a positive turnaround for the apartment segment. Recognizing the increasing demand, apartments with convenient living spaces and quality have become the preferred choice of many customers.

To meet the significant demand this year, the apartment segment market needs to maintain flexibility in accessing potential customers. Project developers need to implement reasonable policies and pricing to increase occupancy rates and expand their reach.

In sync with the rising wave of apartment buildings, the emergence of SkyWorld investors has truly exploded in the current real estate market in Ho Chi Minh City. This real estate giant has marked its first milestone in Ho Chi Minh City with a high-end apartment project in District 8. It is considered one of the most prominent projects this year with its prime location, modern design combined with sustainable standards. Additionally, with SkyWorld’s reputation from previous projects in Malaysia, the amenities system at the District 8 apartment project will be carefully developed to fully meet the diverse needs of residents. Moreover, this project is evaluated by experts as a highly profitable investment opportunity.

Above are the latest updates on the real estate market situation in Ho Chi Minh City in early 2024. Hopefully, through this article, you will gain a better understanding of the issues the industry is facing as well as the current trends in real estate development. Please subscribe to SkyWorld Vietnam to receive the most accurate and timely information about the real estate market.

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