(Dan Tri) - Experts say there will soon be a factor that will help cool down the Hanoi apartment market.
Lack of cheap supply makes it difficult for people to buy houses
According to a report by the Ministry of Construction, real estate transaction prices in recent times have increased beyond the financial capacity of the majority of people, especially in Hanoi and Ho Chi Minh City.
Specifically, apartment prices in Hanoi continued to increase in both old and new projects. The average price of new projects increased by 6% quarterly and 25% annually, while some areas increased locally by about 35-40%, depending on the location, compared to the previous quarter.
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 prices from VND25 million/m2 to less than VND50 million/m2 still account for a high proportion of transactions and supply in the market. The rest are luxury and super luxury apartments with prices above VND50 million/m2.
Apartment prices are continuously increasing and setting new levels, at high levels in both the primary and secondary markets, far exceeding the affordability and income growth rate of the majority of people.
Dr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), said that while the demand for housing is constantly increasing, real estate prices, especially in large cities such as Hanoi, Ho Chi Minh City and key economic development areas, are increasing more strongly, far exceeding the growth rate of people's income. This makes owning a house from the commercial housing supply more difficult than ever.
An apartment building in Hanoi (Photo: Tran Khang).
In that context, people with average and low incomes can only look forward to social housing.
"For low-income workers, especially workers, teachers, or new office workers, saving to buy a house in an urban area has been, is, and will continue to be a very distant goal. Because with the current real estate price level, even if house prices are halved, many people in the middle-income and low-income groups will still find it difficult to buy a house," he shared.
When will apartment prices decrease?
Giving an assessment of the Hanoi housing market, Mr. Nguyen Anh Que, Chairman of G6 Group, stated that the social housing and commercial housing fund in Hanoi will soon reach at least 300,000 units. This will cool down the Hanoi apartment market.
"I have a list of more than 200 social housing projects, including 14 social housing projects concentrated in Dong Anh, Gia Lam, Thanh Tri, Quoc Oai... with more than 300,000 apartment funds," said Mr. Que.
According to him, from the end of 2025, the Hanoi social housing fund will begin to appear, with about 4,000 apartments spread across districts with 10 projects. In 2027-2029, the social housing and commercial housing fund must reach at least 300,000 apartments. This will cool down the apartment market. Currently, there are only people buying apartments to live in, while investors have changed direction.
Ms. Nguyen Hoai An, Senior Director of CBRE Hanoi Branch, said that real estate prices fluctuate due to market supply and demand factors or macroeconomic fluctuations. Accordingly, when supply is high, demand is low, liquidity decreases, and the number of buyers decreases, real estate prices will decrease.
The second case that causes real estate prices to fall is major fluctuations in macroeconomic and financial policies. For example, average real estate prices in China fall when the country has management policies that directly affect the market, but prices in major cities such as Beijing and Shanghai still do not fall.
The Vietnamese real estate market currently has no oversupply. The macro-economic context is stable, interest rates, inflation, and exchange rates are maintained at positive levels. Therefore, in the short term, it will be difficult for real estate prices to decrease.
To address the housing needs of the majority of people, on the supply side, Mr. Dinh recommended solutions aimed at increasing the supply of low-cost housing, improving infrastructure in suburban areas and building effective financial support policies.
On the demand side, according to him, people who need housing in urban areas need to have a clear financial plan and be ready to expand their needs to the suburbs, where real estate prices are lower.
Source: https://dantri.com.vn/bat-dong-san/chung-cu-ha-noi-bao-gio-bot-ngao-gia-20241218014335230.htm
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