Ministry of Construction: Apartments under 25 million VND/m2 are no longer available for sale

The Ministry of Construction emphasized that the affordable apartment segment (with a selling price of less than VND25 million/m2) has almost no transactions and products for sale. Mid-range apartments (with a price of about VND25 million/m2 to less than VND50 million/m2) still account for a high proportion of transactions and supply in the market. The remaining position is high-end and super high-end apartments (with a price of over VND50 million/m2).

In Hanoi, apartment prices continue to increase in both new and old projects, with new project prices increasing by about 4% - 6% quarterly and 22% - 25% annually.

Meanwhile, the selling price of villas and townhouses also increased strongly. Most of the newly launched projects in this quarter are in favorable locations, located in areas with strong investment in infrastructure, so the primary asking price is relatively high. The average secondary selling price of houses attached to land reached about VND160 million/m2 (up 3% quarter-on-quarter and nearly 7% year-on-year).

In the third quarter, apartment prices in some places increased by 35-40% compared to the previous quarter. (Photo: Minh Duc).

In Ho Chi Minh City, the average primary price of villas and townhouses is almost stable and there are some areas where prices have decreased sharply in the high-end, large-area segment with a decrease of about 14% quarterly and 28% annually. Accordingly, products priced under VND10 billion have quite good transactions.

Secondary prices of some projects in Ho Chi Minh City have fluctuated down about 3 - 4%.

Land auctions increase real estate prices

Analyzing the reasons for the high real estate prices in the third quarter, the Ministry of Construction said that it was due to the impact of increased land-related costs when applying the new calculation method and land price list, and at the same time, the affordable housing products did not have enough supply to meet the large market demand.

These factors have pushed up apartment prices, especially in some areas where prices have increased locally by about 35-40% depending on location compared to the previous quarter.

Notably, the Ministry of Construction mentioned the phenomenon of land use rights auctions in some localities. The winning bids were many times higher than the starting price, which has impacted the increase in land prices, real estate prices, and housing prices in neighboring areas and localities. At the same time, it has increased the cost of implementing housing projects, causing difficulties for businesses, reducing supply to the market, and negatively affecting the market.

In addition, the price increase is also due to the phenomenon of "creating virtual prices" and "inflating prices" by speculators and individuals working as real estate brokers, taking advantage of people's lack of knowledge and investing according to the crowd psychology to make profits.

" These are individuals who operate as freelance brokers, do not have real estate brokerage certificates, are weak in expertise, have limited legal knowledge, lack professionalism, and are weak in business ethics, leading to opportunistic business practices, colluding to raise prices, inflating prices compared to actual values, manipulating the market, causing damage to customers, and reducing the transparency of the real estate market ," the Ministry of Construction stated.

The Ministry of Construction's report also said that in the third quarter, 16 commercial housing projects were completed with a scale of about 3,314 units, the number of projects equal to 177.7% compared to the second quarter of 2024 and equal to 76.1% compared to the same period in 2023.

Regarding the implementation of the 120 trillion VND credit package for social housing loans, up to now, in addition to 4 state-owned commercial banks (BIDV, Vietinbank, Agribank, Vietcombank), 4 more banks, Tien Phong Bank (TPbank), VPBank, MBBank and Techcombank, have registered to participate in the program with the registered amount of each bank being 5,000 billion VND. The disbursement results to date have a total outstanding loan balance of 1,783 billion VND.

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