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Daily Real Estate Briefing: Rising Apartment Prices, Housing Policies and Major Projects

The real estate market continues to record notable developments in prices, supply and policy. In former Binh Duong, apartments that were once commonly priced at VND 35-40 million per square meter now have an average price of up to VND 60 million per square meter, making units below VND 45 million per square meter increasingly difficult to find. Meanwhile, many homebuyers in Ho Chi Minh City are willing to leave central areas for suburban locations and new urban zones, where they can find larger spaces and more suitable prices. Although housing supply in Ho Chi Minh City and several localities has increased significantly and purchasing demand has cooled, primary home prices remain high because product structures, development costs and profit expectations have not changed. In Hanoi, the Minh Duc social housing project in Me Linh Commune is expected to receive applications from October 24, with prices starting at VND 1.6 billion per unit, equivalent to nearly VND 24 million per square meter.

Regarding policy, the Ho Chi Minh City Real Estate Association has proposed restoring residency requirements for social housing purchases to reduce pressure on the system and better meet local demand. The Government has proposed abolishing the current 0.2% tax rate applied to encroached land because actual revenue is low compared with the resources required to collect it. Expert Phan Duc Hieu, meanwhile, recommended clarifying the criteria for identifying abandoned land to avoid placing additional burdens on projects facing objective obstacles. For old apartment buildings constructed in or before 1994, apartment owners may receive compensation in housing, land or money when the buildings are demolished, but they may not contribute funding themselves to rebuild them. Current law also stipulates that apartment buildings have a minimum usable life of 50 years, while residents’ ownership rights do not automatically disappear when the buildings reach the end of that period.

In investment news, Meygroup, a member of Tan A Dai Thanh Group, is expected to develop the more than 199-hectare Meyinpark Hung Yen Industrial Park with planned investment of VND 2.842 trillion and a high-tech orientation. Sun Group plans to invest VND 16 trillion in the more than 167-hectare U Bo Mountain and Thac Chuoi Lake eco-tourism complex in Quang Tri, including five cable car routes. Ho Chi Minh City has established the more than 32-hectare Chau Duc Industrial Cluster in Binh Gia Commune, with investment exceeding VND 405 billion. Lotte Eco Smart City Thu Thiem is expected to restart construction of two commercial and service blocks on October 23, with a total floor area of more than 171,000 square meters. Nationwide, obstacles have been removed for more than 3,400 real estate projects, unlocking over VND 2.5 quadrillion. Lam Dong has also listed 35 surplus public housing and land facilities after the merger for leases of up to 10 years. Several urban projects continue to highlight their individual advantages, including Imperia Sensa Park with more than 40 amenities, Meypearl Harmony in Phu Quoc with long-term ownership rights and proximity to major transport infrastructure, and Van Phuc City with its Saigon River frontage and connection to National Highway 13. In architecture, an 82-square-meter house has been raised 2.5 meters on wooden columns to adapt to flooding, while a townhouse design uses a void between floors to bring light from the roof down through the levels and maintain ventilation.

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