Southern Binh Duong province sees return of $45,000 apartments

At TT AVIO, developed in Di An City by a joint venture between real estate management firm Koterasu Group and developers Cosmos Initia and TT Capital, one-bedroom units measuring 40 square meters cost around VND1.2 billion, or VND30 million per square meter, and those with two bedrooms are priced at VND1.7 billion.

The developers also have generous payment policies and allow buyers to negotiate payment terms appropriate for their financial status.

According to a local broker, the project, around 20 kilometers away from HCMC’s Thu Duc City, offers lower prices than others in its vicinity, where they are VND35 million or more.

The majority of units in the Phu Dong Sky One project, also in Di An, measure 48-53 square meters and cost VND1.4-1.6 billion.

In Thuan An City, the A&T Sky Garden project is preparing to launch this month at prices starting at VND32 million per square meter.

The cheapest units in the Ben Hill apartment complex in the same city are being sold at VND1.3 billion.

A project in Ben Cat City is reportedly planning to start sales at the end of this year at VND1.1 billion for 45-square-meter apartments.

Analysts expect these affordable projects to increase transactions in the province.

According to data from real estate trading platform Batdongsan, the absorption rate in the primary market has been a mere 25-30% in the last two years with most potential buyers looking for apartments priced at VND1.5 billion or less while market offerings have been in the VND2-3 billion range.

Dinh Minh Tuan, southern regional director of Batdongsan, said: "The mismatch between supply and demand is forcing developers to reconsider their prices."

Vo Hong Thang, DKRA’s director of investment, said the new affordable supply has dragged apartment prices in the province down to VND29-48 million per square meter in July from VND31-59 million in the second quarter.

Le Hoang Chau, chairman of the HCMC Real Estate Association, said the fall in prices is an important step in rebalancing and stabilizing the Binh Duong apartment market.

According to property consultancy Savills Vietnam, over 24,000 affordable apartments will be on sale over the next three years in Binh Duong and Dong Nai, another neighboring province next to HCMC.

Some 80% of the new supply will be in Di An, Thuan An and Binh Duong New City.

Binh Duong, an industrial hub, has over three million residents, more than 50% of whom are migrant workers with modest incomes for whom housing would be within reach if prices are close to VND1 billion.