Southern Vietnam's Real Estate Market Sees Unprecedented Growth

In an impressive display of market vitality, over 11,000 apartment units were sold, marking a 54% absorption rate and a staggering 3.3-fold increase year-on-year, as reported by DKRA Group.

Expanding Horizons: The Impact of Local Mergers

The mergers of localities, effective from July 1, have significantly altered the landscape, reducing the number of provinces and centrally administered cities from 63 to 34. This restructuring has not only expanded urban spaces but also streamlined administrative boundaries, fostering more systematic urban planning.

Apartment buildings in Ho Chi Minh City. Photo by VnExpress/Quynh Tran

Investor Confidence Restored

The changes have reignited investor confidence, particularly in the southern regions, with a keen interest in areas poised to become new administrative, economic, and social hubs. This enthusiasm is creating early opportunities in land, townhouse, and apartment segments.

Market Trends and Future Outlook

With developers actively launching projects and adapting to market trends, the real estate sector is witnessing a revival. Improved cash flows, eased financial pressures, and resolved legal hurdles are paving the way for expansion. The entry of new developers with robust financial capabilities further enriches the market dynamics.

Looking ahead, the third quarter is expected to see the introduction of 9,000-11,000 new apartments, primarily in Ho Chi Minh City, with a focus on the high-priced segment. New regulations and sustained low bank lending rates are anticipated to bolster demand.