Over 11,000 units were sold, equivalent to an absorption rate of 54%, a 3.3-fold jump year-on-year, according to data from property consultancy DKRA Group.
The figures were for the new HCMC (now also comprising Binh Duong and Ba Ria – Vung Tau Provinces post-merger), Tay Ninh and Dong Nai Provinces.
New supply tripled to 10,000, bringing total supply to 20,580 units.
Prices were up 3-8% quarter-on-quarter on the primary market, where developers sell to buyers.
On the secondary market, prices rose by 4-11%.
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Apartment buildings in Ho Chi Minh City. Photo by VnExpress/Quynh Tran |
Analysts attributed the rise to positive market sentiment as investors looked forward to the mergers of localities, which took effect on July 1, bringing the number of provinces and centrally administered cities down from 63 to 34.
Trinh Thi Kiem Lien, head of sales at real estate broker Datxanh Services, said the mergers have increased urban space and restructured administrative boundaries, leading to more systematic planning.
Previously fragmented areas are now being reoriented, facilitating the development of new urban areas, industrial zones and concentrated residential clusters, she said.
The changes have restored investor confidence, particularly in the south, she added.
Investors are increasingly interested in the new areas with potential to become new administrative, economic and social hubs, creating a wave of early opportunities, especially in the land, townhouse and apartment segments.
Vo Hong Thang, deputy general director of DKRA Group, said developers are actively launching projects, adapting to market trends and accelerating investment.
Cash flows and access to capital have improved for many businesses, financial pressures have eased and some projects have resolved persistent legal hurdles.
Most developers are ready to enter an expansion phase.
Thang also highlighted the entry of new developers with strong financial capacity. After a period of accumulation and legal resolution, numerous projects were launched in the first half of the year.
Many developers created a market buzz by promoting their projects, he added.
In the third quarter researchers expect approximately 9,000-11,000 new apartments to hit the market, primarily in HCMC and skewed toward the high-priced segment.
New laws, circulars and decrees effective from July 1, combined with sustained low bank lending rates, are expected to positively impact demand.
