Sector Insight

HCMC's Real Estate market in 2024 continued to face a severe shortage of supply, with only 5,050 new condos launched (-40% YoY). Meanwhile, property prices remained high, indicating that the supply shortage had reached its peak. However, a bright spot in HCMC's real estate market after five months of the unified Real Estate laws being enforced was (1) the removal of legal obstacles for over 300 condos in projects that had been suspended for 1-2 years in Q3, and (4) the new supply of condos began to increase in Q4. 

We expect the project supply to be boosted from the first quarter of 2025 thanks to the city's decisive policies. Among them, a number of regulations were enacted and approved by HCMC from September, including: (1) supplemental regulations for managing underground urban space planning; (2) completion of regulations on compensation and land clearance in HCMC; and (3) the issuance of a new land price table. Simultaneously, the Government also approved the HCMC Planning for the period 2021-2030 with a vision to 2050 in December 2024 through Decision No.1711/QD-TTg.