Real Estate Briefing: Investors Hunt Discounted Assets as Housing Policies and Major Projects Advance
The real estate market continues to show mixed developments as investors seek opportunities during a period of slow liquidity while financial pressure remains high. Land plots are considered unlikely to return to the speculative fever seen in the past and instead need to be supported by actual infrastructure, reasonable prices and residential demand in urbanizing areas. Meanwhile, investors with available cash are looking for deeply discounted properties, especially assets capable of generating rental income. In contrast, many owners of townhouses and villas in southern Vietnam are accepting losses of billions of dong because of financial leverage, although finding buyers remains difficult.
In Ho Chi Minh City, several new policies and proposals have attracted attention. The city has proposed allowing certain illegally constructed buildings to remain under conditions if they meet requirements relating to planning, safety, remediation and payment of fines. Developers, trading floors and brokerage businesses are also required to update project and transaction information as soon as changes occur instead of waiting for periodic reporting. The new framework for apartment management service fees ranges from VND 600 to VND 13,700 per square meter per month, with the maximum nearly double the previous regulation. HoREA has proposed retaining the right to resell social housing at market prices after five years, while Hanoi has opened sales of more than 160 social housing units in To Huu and Phuong Canh at VND 16-20 million per square meter.
In the project development segment, the second phase of Izumi Gardenia, part of Izumi City, was launched with the participation of 33 distribution agencies. Khai Hoan Prime is attracting attention for its location along the Long Kieng and Cau Dao rivers and its planned access to Metro Line 10 at approximately 300 meters; Capital Square is located on the eastern bank of the Han River, providing connections to the city center, commercial areas and tourism destinations. Keppel and Phu Long are developing Celesta Gold, comprising two 25-story towers with 420 riverside apartments, while Vinhomes plans to increase the investment capital of its international sports urban area to more than VND 1.2 quadrillion. A consortium led by a Vingroup-affiliated company has also been approved to invest more than USD 7.9 billion in the Cai Mep Ha port complex. In addition, the housing market continues to see promotional programs and customer appreciation activities at EcoLakes My Phuoc and Van Phuc City, alongside urban models combining residential, commercial, service and tourism functions such as The Heritage Tay Ninh.
In Ho Chi Minh City, several new policies and proposals have attracted attention. The city has proposed allowing certain illegally constructed buildings to remain under conditions if they meet requirements relating to planning, safety, remediation and payment of fines. Developers, trading floors and brokerage businesses are also required to update project and transaction information as soon as changes occur instead of waiting for periodic reporting. The new framework for apartment management service fees ranges from VND 600 to VND 13,700 per square meter per month, with the maximum nearly double the previous regulation. HoREA has proposed retaining the right to resell social housing at market prices after five years, while Hanoi has opened sales of more than 160 social housing units in To Huu and Phuong Canh at VND 16-20 million per square meter.
In the project development segment, the second phase of Izumi Gardenia, part of Izumi City, was launched with the participation of 33 distribution agencies. Khai Hoan Prime is attracting attention for its location along the Long Kieng and Cau Dao rivers and its planned access to Metro Line 10 at approximately 300 meters; Capital Square is located on the eastern bank of the Han River, providing connections to the city center, commercial areas and tourism destinations. Keppel and Phu Long are developing Celesta Gold, comprising two 25-story towers with 420 riverside apartments, while Vinhomes plans to increase the investment capital of its international sports urban area to more than VND 1.2 quadrillion. A consortium led by a Vingroup-affiliated company has also been approved to invest more than USD 7.9 billion in the Cai Mep Ha port complex. In addition, the housing market continues to see promotional programs and customer appreciation activities at EcoLakes My Phuoc and Van Phuc City, alongside urban models combining residential, commercial, service and tourism functions such as The Heritage Tay Ninh.