In recent years, the eastern part of HCMC (formerly Thu Duc city) has consistently led in new housing supply, especially condominiums. However, the supply in this area has become increasingly polarized, with the market now dominated almost entirely by high-end products.

Apartment sale prices continue rising, and developers are sequentially launching products with higher prices than previous phases. Average apartment prices here are approaching VND200 million per sqm.

The Eastern HCMC area, specifically Nam Rach Chiec, has emerged as a key battleground in the luxury condominium segment, with numerous large-scale projects under development.

According to Avison Young, competition among developers in this area has intensified, as most companies are targeting the high-end and ultra-luxury markets.

“This trend is not only establishing a new price range between VND200 and VND300 million per sqm but is also positioning Nam Rach Chiec as HCMC’s next luxury apartment hub,” a representative of Avison Young stated.

After HCMC expanded its administrative boundaries, the city became a mega urban center with a significantly reshaped housing supply. While the former Vung Tau area added five new projects, the former Binh Duong area contributed 20 new developments.

Affordable projects in Hanoi

The Hanoi market recently recorded revival signs in the social housing segment as a series of new projects have been launched, with prices ranging VND18.4 to 29.4 million per sqm.

The Thuong Thanh social housing project and its surrounding infrastructure (commercial name: Rice City Long Chau), located in Bo De ward (formerly Thuong Thanh ward, Long Bien district), officially began accepting applications from October 1 to November 4.

The announced average selling price is VND29.4 million per sqm (including VAT, excluding maintenance fee). The one-time maintenance fee is VND560,072 per sqm. The average hire-purchase price is VND346,701 per sqm per month (including VAT). About four months ago, the estimated price offered by the developer was VND26 to VND27 million per sqm, meaning prices have increased by over VND2.4 million per sqm.

At current rates, the smallest unit of 32.3 sqm is priced at VND950 million, while the largest unit of 77.2 sqm is priced at more than VND2.26 billion. This is currently the most expensive social housing project in Hanoi.

Previously, the record was held by the Ha Dinh social housing project, located in Thanh Liet ward (formerly Tan Trieu commune, Thanh Tri district), with an estimated price of VND25 million per sqm.

In November, the CT3 social housing project in the new Kim Chung urban area, Thien Loc commune (formerly Kim Chung, Dong Anh district), will also begin accepting applications.

Novaland’s bond cash flow under scrutiny

The Government Inspectorate recently released its findings on Novaland’s compliance with regulations regarding the issuance and use of private corporate bonds for the period from January 1, 2015 to June 30, 2023.

Among 18 issuers under the Novaland Group and its subsidiaries, inspectors found that 131 bond codes were successfully issued during the reviewed period. These bonds had maturities ranging from one to five years and a total value of VND67,100 billion.

At Novaland Group, the inspection concluded that the company had issued and used VND1,500 billion in bond proceeds to increase capital for its subsidiary, Khai Hung Real Estate Co., Ltd. This subsidiary later used the funds to acquire a 99.9 percent stake of VND1,843 billion, in The Ky Hoang Kim Real Estate Co., Ltd., previously owned by Vo Thi Kim Khoa.

The findings also noted that Novaland and three of its affiliates, namely Unity, Aqua, and Lucky House, issued corporate bonds to purchase capital stakes from individuals in other businesses. However, forming individual capital shares at other enterprises showed abnormal signs.

The thirst for affordable housing

According to Le Hoang Chau, chair of the HCMC Real Estate Association (HoREA), in 2013, when the government launched Resolution 02 along with a VND30 trillion credit package, commercial housing priced at or below VND1.05 billion was eligible for loans. Today, the threshold for reasonably priced commercial housing should be considered at below VND3 billion.

This support should also be extended to reasonably priced commercial housing.

To develop the affordable housing segment, Nguyen Trung Vu, chair of the board at Cen Land, suggested that the government should reduce land use taxes, especially for urban areas farther from the city center. At the same time, policies must support genuine homebuyers while limiting speculative investment.

Hanh Nguyen