The complicated situation surrounding the COVID-19 pandemic is affecting the real demand of the real estate market. In the last quarter, many segments recorded diminishing number of transactions as well as supply. However, part of the real estate market in several regions still showed positive signals, despite continuing social & economic instability.
According to a report by the Vietnam Real Estate Brokers Association, in the second quarter of 2021, in Dong Nai, general market sentiment still looked damp due to the impact of the ongoing pandemic. Several projects kicked off at the same time, leading to high level of competition; construction progress decelerated with most of the inventory sold to investors while demand for housing deflated. However, the niche for cheap, cash-strapped real estates with ownership certificates still recorded ample transactions, despite the impact of COVID-19.
More specifically, the price of apartments fluctuated at 1.8-3.2 billion VND/unit; land price, including project land and residential land, ranged from 850 million to 1.4 billion VND/plot; price for villas, townhouses, shophouses measured around 6.5-8 billion VND/unit, whereas for resort real estates (condotel, resort villa), prices stood at around 15-34 billion VND/unit.
According to DKRA Vietnam, although all market segments stalled due to the impact of the pandemic, there were still some bright spots in some segments. For example, in the second quarter, the market for land in Ho Chi Minh City and neighboring provinces recorded more abundant supply, equivalent to an increase of 125% compared to the first quarter; as well as an increase in consumption rate by 59%. The suburban land market continued to hold the leading position while Ho Chi Minh City experienced 4 consecutive quarters of lack of new supply. Dong Nai continued to lead the supply and new consumption volume in the whole market.

 
In the segment for apartments, supply and consumption rate in the South of Ho Chi Minh City increased sharply in the second quarter, accounting for 44% of total new supply and 52% of total market consumption. Prices in the primary market in Ho Chi Minh City in the first half of the quarter recorded a slight increase of about 3-5%, due to the fact that the projects introduced to the market were mainly in the latter stages, nearing completion or a synchronous planning and construction project. New supply and consumption also increased compared to the same period in 2020. Projects were brought to market mainly in the early days of the second quarter when the pandemic had yet reached its peak.
 

 
According to DRKA, projects which have certified legal bindings, completed infrastructure or rapid construction progress still attracts the attention of investors. “Red-book land” still channels strong cashflow and is also a safe-haven with good price ranges and sustainable profits in the long-term.
 

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