Dong Nai market cools down due to lack of new supply

According to the April 2024 market report of Batdongsan.com.vn, the demand for buying real estate in Dong Nai decreased by 4% compared to the previous month. In particular, the type of adjacent villas had the largest decrease of 12% compared to March. Notably, the main types that were sought after by investors in the first quarter of 2024 in Dong Nai were land plots and project land plots, which also decreased by 7% and 3% respectively. Only the type of private houses still had growth with a modest increase of 1%.

However, despite the decrease in demand, the number of real estate listings in Dong Nai still increased by 6% compared to the previous month. Of which, the number of listings for private houses in Dong Nai increased by 20%, townhouses increased by 13% and land increased by 9% compared to the previous month. Project land also increased by 3%, only villas recorded a decrease of 6%.

Land plots, the main type of land in Dong Nai, also recorded a decrease in April 2024.

By region, real estate searches increased slightly in the three districts of Vinh Cuu, Thong Nhat and Trang Bom but decreased in most of the remaining localities. Specifically, demand for buying in Trang Bom increased by 4%, Vinh Cuu increased by 6%, Thong Nhat increased by 8%, while other areas recorded decreases such as Bien Hoa decreased by 1%, Nhon Trach decreased by 10%, Dinh Quan decreased by 3%, Long Thanh decreased by 5%, Long Khanh decreased by 15%, Xuan Loc decreased by 12%, Tan Phu decreased by 19% compared to the previous month.

The rental market also recorded a sharp increase in the number of rental listings in the two segments of warehouses (up 10%) and apartments for rent (up 16%). The remaining types such as townhouses, boarding houses, and shops/kiosks for rent all had an average decrease of 14-29% compared to the previous month.

Rental demand in this market also grew positively in April. Almost all types of rentals here had increased rental searches such as: private house rental increased by 13%, warehouse rental increased by 13%, Dong Nai motel rental increased by 8%. However, apartment rental searches decreased by 7% last month.

Many opinions say that the decrease in April 2024 is due to the impact of legal review at many key projects, and also affected by the lack of new supply in the market. Last month, in Dong Nai, there was only 1 new small-scale land project for sale, the only apartment project being implemented here was also postponed. Types such as adjacent villas also lost supply. The land and project land segments also recorded only a few scattered transactions in the secondary market.

The shortage of supply is expected to continue, reducing Dong Nai's competitiveness compared to other markets.

Reports from many research units also show that the shortage of supply in the Dong Nai market will continue, reducing competitiveness compared to neighboring markets of Ho Chi Minh City such as Long An or Binh Duong.

However, in recent times, Dong Nai authorities have actively removed legal obstacles and accelerated the implementation of many projects that are stuck in the area. Among them, many key traffic projects such as Bien Hoa - Vung Tau expressway, Cai riverside road, and Bien Hoa city center road are factors that are expected to have a positive impact on the market in the coming time.

Of which, Bien Hoa - Vung Tau Expressway has a total length of 53.7 km, total investment of 17,800 billion VND is being accelerated to clear the land to complete the approval of compensation plan, land acquisition and handover of the land to the investor to implement the project before June 30. This province is also requesting the early completion of the riverside road project with a total length of nearly 4.6 km, connecting Ha Huy Giap Street to Tran Quoc Toan Street. The cross-section of the route is 32 m. On this route, there will be 5 newly built bridges, the bridge width is 22.7 m.

Source: https://www.congluan.vn/thi-truong-dong-nai-ha-nhiet-do-thieu-hut-nguon-cung-moi-post296581.html