According to real estate experts, in contrast to the price increase of affordable and mid-end apartments, the purchase and resale prices of high-end and luxury projects may record a slight decrease.
Condominiums steadily increase in price
According to a survey by reporter Dan Tri, many Hanoi real estate exchanges specializing in selling primary apartments to investors have officially opened spring right after the Lunar New Year holiday. The opening price of primary apartments in some apartment projects also increased by 1-2% compared to the previous launch.
According to some brokers, the largest number of customers asking to buy is in the price segment of 40-60 million VND/m2. Brokers specializing in selling transfers also said that the success rate of closing in a day averaged from 3 to 8 transactions.
Previously, according to data from the Ministry of Construction, in the fourth quarter of 2023, particularly in two big cities, Hanoi and Ho Chi Minh City, housing prices were recorded to increase. In Hanoi, housing prices in Thanh Xuan district increased by about 3.5%; Ha Dong district increased by about 3.7%; Hoang Mai district increased by about 3.8%; Nam Tu Liem district increased by about 4.1%…
Notably, some projects have a high average price increase such as: Golden Land (Thanh Xuan) increased by about 3.5% (to VND 38.7 million/m2); HH2 Linh Dam (Hoang Mai) increased by about 3.8% (to VND 25.7 million/m2); The Sparks (Ha Dong) increased by about 3.7% (to VND 28.3 million/m2), Goldsilk Complex (Ha Dong) increased by about 4.1% (to VND 33.5 million/m2), Imperial Citadel Pearl (Nam Tu Liem) increased by about 4.1% (to VND 52.3 million/m2) …
Data from the Vietnam Association of Real Estate Brokers (VARS) shows that the apartment price index in Hanoi in 2023 has increased by about 38 percentage points compared to 2019. In Ho Chi Minh City, it is 16 percentage points.
Apartment prices in Hanoi recorded continuous increases in both primary and secondary markets. While apartment prices in Ho Chi Minh City have also started to enter a price increase cycle again along with a gradual decline in high-end and luxury projects in the secondary market.
Statistics from Batdongsan.com.vn show that the level of interest in condominiums for sale nationwide in January this year increased by 66% compared to the same period in 2023, the number of listings for sale of real estate also increased by 46%.
Specifically, the number of searches for apartments in January this year in Hanoi increased by 71% over the same period. Similarly, in Ho Chi Minh City, the demand for apartments also increased by 59%. This trend is similar in most other provinces and cities.
Despite the strong increase in demand from home buyers, the supply of apartments has grown disproportionately. The supply of apartments in 2023 will record a decrease in the two markets of Hanoi and Ho Chi Minh City.
In Hanoi, the supply of new apartments in 2023 is estimated at 10,500 units, down about 31% compared to the previous year. In Ho Chi Minh City, the supply of new apartments is estimated at nearly 7,500 units, down more than 50% over the same period in 2022.
The supply of apartments has decreased in recent years due to the increasingly scarce number of newly approved real estate projects while ongoing projects are “struggling” due to legal and capital problems.
Despite the efforts of the Government and ministries to overcome some remarkable results, the number of projects implemented and restarted in 2023 increased sharply, but the cash flow pressure has not eased for real estate businesses.
The price of luxury apartments may decrease
According to Mr. Nguyen Van Dinh – Chairman of VARS, supply is scarce while demand is always high, causing apartment projects to continuously establish new price levels, especially in two special urban areas. Apartment prices in Hanoi have continued to rise, while new condominium projects in Ho Chi Minh City have also started to enter a price increase cycle again along with a gradual decline in the secondary market.
In the short term, Mr. Dinh forecasted that apartment prices in the center of big cities will continue to maintain the upward momentum, especially in the affordable and mid-end segments. While the purchase and resale prices of high-end and luxury projects may record a slight decrease.
This expert expects, along with the background of a series of positive factors of the current market, by mid-2025, when new laws related to the real estate sector are passed with new regulations in the direction of removing difficulties for investors and buyers of social housing, Housing for workers is officially in effect. The supply of social housing will increase, the apartment price level will be more suitable for people with real housing needs.
Ms. Do Thu Hang – Senior Director, Savills Hanoi Research and Consulting Department – assessed that the housing segment continues to grow in price due to land costs, increased construction costs, developed infrastructure, improved quality.
According to Ms. Hang, the limited supply of apartments in the market continues to increase, leading to the average primary selling price of the whole market continues to increase, which is difficult to cool down.
