Daily Real Estate Briefing: Affordable Apartments Become Scarcer Amid New Projects and Policy Developments
The domestic real estate market continues to record a number of notable developments. The growing shortage of affordable apartments is attributed to rising input costs and legal bottlenecks, requiring comprehensive changes in urban planning and project development thinking. According to experts, the TOD urban model could help create apartments priced at around VND 2 to 3 billion, instead of relying solely on lowering selling prices. Meanwhile, applying a K coefficient to the land price table could increase land-use fees by 2 to 2.6 times, putting greater cost pressure on businesses and increasing residents’ financial obligations. A proposal to ban the transfer of future housing sale contracts is also sparking debate, as it could curb speculation but reduce buyers’ flexibility when they need to transfer their contracts.
In the housing segment, Hanoi is preparing to receive applications to buy, rent and rent-to-own homes at two social housing projects in Thach That, including apartments priced at around VND 880 million. The city has also announced the planning boundaries for the approximately 299.5-hectare Ba Vi Safari Park project and approved a plan to address violations at projects developed by Muong Thanh Group, including HH Linh Dam apartments. Ho Chi Minh City has reviewed 64 old apartment buildings comprising 106 blocks and a total of 8,577 apartments subject to relocation and demolition, but no case requiring urgent demolition has been recorded. In Bac Ninh, authorities are inviting bids to select an investor for the approximately 102-hectare Van Trung new urban area, with expected investment exceeding VND 28.3 trillion. Two properties on Dong Khoi’s prime land, associated with Truong My Lan, have also had their prices reduced by nearly 9% after no bidders registered in the previous auction.
In business, the market remains subdued, although several major companies have posted positive results. Vinhomes reported a 390% increase in profit, while Novaland moved from losses to profits worth thousands of billions of dong. Real estate stocks moved in opposite directions following interest-rate cuts by several banks, with some codes falling 3 to 6% during the week, while Novaland’s nine-month profit exceeded 155% of its annual target. In the hospitality sector, nearly 17,000 hotel rooms in Ho Chi Minh City recorded a 70% occupancy rate in the third quarter, with an average room price of VND 2.4 million per night, higher than the same period last year. Kim Oanh Group and Kinera also opened the 1-hectare One Era Galleria experience space in Ho Chi Minh City. Lifestyle and home design trends remain in focus through Izumi Canaria’s canal-side clubhouse, Elyse Island, fragrant indoor plants, low-cost interior upgrades and bedroom refresh ideas.
In the housing segment, Hanoi is preparing to receive applications to buy, rent and rent-to-own homes at two social housing projects in Thach That, including apartments priced at around VND 880 million. The city has also announced the planning boundaries for the approximately 299.5-hectare Ba Vi Safari Park project and approved a plan to address violations at projects developed by Muong Thanh Group, including HH Linh Dam apartments. Ho Chi Minh City has reviewed 64 old apartment buildings comprising 106 blocks and a total of 8,577 apartments subject to relocation and demolition, but no case requiring urgent demolition has been recorded. In Bac Ninh, authorities are inviting bids to select an investor for the approximately 102-hectare Van Trung new urban area, with expected investment exceeding VND 28.3 trillion. Two properties on Dong Khoi’s prime land, associated with Truong My Lan, have also had their prices reduced by nearly 9% after no bidders registered in the previous auction.
In business, the market remains subdued, although several major companies have posted positive results. Vinhomes reported a 390% increase in profit, while Novaland moved from losses to profits worth thousands of billions of dong. Real estate stocks moved in opposite directions following interest-rate cuts by several banks, with some codes falling 3 to 6% during the week, while Novaland’s nine-month profit exceeded 155% of its annual target. In the hospitality sector, nearly 17,000 hotel rooms in Ho Chi Minh City recorded a 70% occupancy rate in the third quarter, with an average room price of VND 2.4 million per night, higher than the same period last year. Kim Oanh Group and Kinera also opened the 1-hectare One Era Galleria experience space in Ho Chi Minh City. Lifestyle and home design trends remain in focus through Izumi Canaria’s canal-side clubhouse, Elyse Island, fragrant indoor plants, low-cost interior upgrades and bedroom refresh ideas.
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