Apartments under 1 billion VND, an opportunity for people with real housing needs?

While the real estate market is facing many difficulties, some investors have changed direction, trading in the apartment segment with prices ranging from 900 million VND - 1.7 billion VND to attract people with real housing needs.

Apartment market has bright spots

For many years, the real estate market in the Southern region has not recorded a supply of apartments under 1.5 billion VND, instead, there are mid-range and high-end apartment real estate segments with prices of several billion to several tens of billions/apartment. 

This shows that the opportunity to own commercial housing for people, young people, and people with real housing needs is even more difficult. 

According to the report on the real estate market in Ho Chi Minh City and surrounding areas of DKRA Group Joint Stock Company, in the second quarter of 2024, the apartment segment recorded 126 primary projects for sale (about 14,538 units) in the quarter, an increase of 12% compared to the previous quarter and an increase of 8% compared to the same period in 2023. Ho Chi Minh City leads in primary supply in the quarter, mostly from class A and luxury apartment projects in the East.

Meanwhile, data from PropertyGuru Vietnam JSC (batdongsan.com.vn) shows that the market in Ho Chi Minh City also has high-end apartment segments with selling prices of hundreds of millions of VND/m2. 

Mr. Dinh Minh Tuan, Director of the Southern region of Batdongsan.com, commented that currently, the mid-range apartment segment mainly appears in Binh Duong province and a new market, Long An province. The apartment segment in these two neighboring provinces of Ho Chi Minh City is considered to attract the most attention for both sale and rental. 

According to Nguoi Dua Tin, currently, some investors are "shifting" their strategy to the adjacent area to develop projects.

In particular, in the apartment segment, some businesses are currently offering affordable products from 900 million to more than 2 billion VND to attract investors, residents, and young people with real housing needs. 

For example, a project located in Tan Dong Hiep ward (Di An city, Binh Duong province) is being developed by an investor with capital from Japan. 

Currently, this project is being introduced at a price of 30 - 31 million VND/m2. The 1-bedroom apartment product of 40m2 has an estimated price of more than 1.2 billion VND. 

Or in the area of ​​My Yen commune (Ben Luc district, Long An province), an investor is also introducing a project with apartments of 35m2 priced at over 900 million VND/apartment, 2-bedroom apartments of 45 - 53m2 are expected to sell for 1.2 - 1.3 billion VND/apartment.

Talking to Nguoi Dua Tin, Mr. Pham Van Binh, General Director of Keyone Land Real Estate Investment and Development Joint Stock Company, commented: Projects with the above prices can be considered a rare supply source in the entire Southern market today. The decision of investors to make low-cost apartment projects at the present time is correct and certainly appropriate. 

"Because the supply is very limited, along with the fact that apartment prices in Ho Chi Minh City are increasing, the project located next to Ho Chi Minh City is a big advantage. Another advantage is in terms of price, especially for those with real housing needs, this is an opportunity. It has been a long time since the market has seen such a project supply," said Mr. Binh.

According to Mr. Binh, the apartments offered for sale in the Binh Duong and Long An markets since the beginning of the year have prices ranging from 1.8 billion VND to over 2 billion VND. However, projects with starting prices of around 900 million VND/apartment are rare.

Cheap house, quality guaranteed?

It is clear that although the real estate market in general is facing difficulties, with a new strategic orientation, many investors are shifting to selling cheap houses, expecting low profits. Meanwhile, many people with real housing needs are also looking for suitable real estate products, within their financial capacity to settle down.

Sharing with Nguoi Dua Tin, Mr. Hong Thai (residing in Hiep Binh Chanh, Thu Duc City, Ho Chi Minh City) "My family is planning to have a baby, in the near future we will have to buy a house and cannot rent forever. My wife and I are also calculating to find an apartment project in Binh Duong area for convenience and cheap price. However, currently, this province only has apartments over 2.5 billion VND/2-bedroom apartment. We are looking for more projects with cheaper prices".

According to Mr. Thai, although he works in Ho Chi Minh City, he still accepts to buy projects near the city to go to work. "The most important thing right now is to choose a cheap project that is suitable for your family. Instead of paying rent, pay monthly for a house, save so that later it will also be your own property," Mr. Thai shared.

However, Ms. Nguyen Thanh Truc (living in District 7, Ho Chi Minh City) is concerned that, in addition to the narrow and cramped space of low-cost apartments, the quality of the construction, as well as fire safety, electricity and water, and leaks during the rainy season are also issues that make her worried. Moreover, the legality of such low-cost projects is not known to be complete or not.

From an expert perspective, Mr. Nguyen Viet Hung, Chairman of the Western Alliance Joint Stock Company, said: "Currently, housing prices are always increasing and there are rarely any apartment projects for sale for less than 1 billion VND. Facing the right point, young people and those with real housing needs should learn skills and seize the opportunity to own a home for themselves". 

"With this reality, the opportunity to buy a house for young people in the central areas of large cities is almost impossible. Young people who want to buy a house must choose areas such as Binh Duong, Long An... Although far away, the price is reasonable, combined with the current technical infrastructure and convenient traffic connections, home buyers do not have to worry too much about going to work", Mr. Hung shared.

Commenting on the fact that cheap projects may not go hand in hand with construction quality, Mr. Hung said that each project is currently carefully reviewed by the authorities, from the stages of raw materials such as bricks, steel, etc., especially the fire protection system for apartment buildings. If the project is not done according to standards and regulations, the project will not be approved by the authorities.

In addition, the reputation will be lowered, and the investor may be severely punished.

"A piece of advice for home buyers is that in addition to the price, they should also carefully study the project's technical parameters, construction parameters, and design for more peace of mind. In addition, buyers should also carefully check the legality before paying for the project," Mr. Hung shared. 

Sharing with Nguoi Dua Tin, Mr. Nguyen Ngoc Chau, Sales Director of TT Capital Investment Joint Stock Company, said: The apartment segment with a price of less than 2 billion VND is currently quite rare and must be said to be a rare bright spot in the market.

Because with a series of market costs, business administration, construction costs, land use fees, etc., the price of the product is often very high.

"If a cheap product appears, it is certainly a very careful calculation of the business. These businesses have reduced their expectations for profit, in order to attract home buyers, meet the housing problem of customers, aim for sustainable development, and create opportunities for young people to own a house," said Mr. Chau.

However, according to experts, these projects are often located in the vicinity of Ho Chi Minh City. If working in Ho Chi Minh City, when buying these projects, customers need to calculate reasonable travel and commuting options.