Apartments are constantly being asked to buy, land is being collected to build pickleball courts

Apartments are constantly being asked to buy, land is being collected to build pickleball courts

According to the Vietnam Association of Realtors (VARS), the apartment segment is heating up in both supply and demand. At the same time, land plots priced under VND2 billion are also being actively sought after by investors.

Apartment prices increase but still attractive

In its Q3/2024 report, the Vietnam Association of Realtors said the real estate market is gradually getting “hotter”, especially in the residential segment. In recent times, many apartment owners have continuously received calls asking to sell their houses.

“Newly launched projects have high deposit rates, up to over 70%, even though the prices are not cheap,” VAR's report said about the appeal of apartments.

In terms of total housing supply nationwide, in the third quarter of 2024, 22,412 products were offered for sale. Of these, 14,750 products were newly launched. This figure is 60% higher than the same period in 2023.

Many new apartment projects are competing to open for sale in Hanoi. Photo: Thanh Vu

Notably, the apartment segment accounts for nearly 70% of the new supply, with nearly 10,000 products. Of which, 70% of the offered apartments belong to the high-end and luxury segments. On the other hand, mid-range apartments only appear in suburban mega-urban projects. Meanwhile, the affordable apartment segment has almost "evaporated" from the market.

In terms of demand, the total number of successful housing transactions in the third quarter of 2024 reached 10,400, 80% higher than the same period in 2023. The absorption rate reached 51%, up 28 percentage points over the same period last year. Of which, the absorption rate on new supply of the apartment segment was at the highest level, at about 75%.

In the primary market, as of the third quarter of 2024, the average selling price of new apartments in Hanoi is approaching VND60 million/m2, an increase of 64% compared to the first quarter of 2019. In Ho Chi Minh City, the price of new apartments is around VND64.2 million/m2, an increase of 30.6% compared to the first quarter of 2019.

“Primary prices continue to increase because supply, although improved, is still difficult to meet demand. In addition, most of the new supply continues to be completed at a high standard with high investment costs, especially land-related costs,” Ms. Pham Thi Mien, Deputy Head of Market Research and Investment Consulting and Promotion Department of VARS, explained the high price of new apartments.

On the other hand, in the secondary market, the price of old apartments in Hanoi has started to level off after a period of "hot" growth. On the contrary, apartments in Ho Chi Minh City have shown an upward trend again.

Suburban land catches the eye of investors

Regarding the land segment, VARS said that the transaction volume continues to improve and is mainly occurring in land plots valued at less than VND2 billion with full legal documents. Regarding prices, the market is currently showing a sideways trend after the "fever" at the beginning of this year.

Many investors travel to the outskirts of Hanoi to buy land. Photo: Thanh Vu

“Demand for real estate, including housing and investment needs, continues to increase and tends to shift to suburban areas, provinces/cities surrounding the two special urban areas and the secondary market, with many options at more reasonable prices,” VARS said.

In addition, the pickleball trend has also unexpectedly become a factor that helps the land market become more bustling. Many investors have been rushing to collect land to open soccer fields in Hanoi and Ho Chi Minh City, giving abandoned land a chance to be used.

Regarding residential real estate, VAR believes that the increase in selling prices at commercial projects has caused the price level of houses/land among people in big cities to remain high, although purchasing power is not as high as before. Currently, selling prices remain stable or increase slightly, about 5-10% compared to the "bottom".

“The demand for residential real estate is focusing on products with a value of less than VND4 billion in two special urban areas. In addition, townhouses in the center of neighboring provinces and cities, priced under VND3 billion, are also receiving no less attention,” VARS assessed.

Referring to the auction land segment, experts of the association said that currently, the starting land price is determined by multiplying the coefficient K by the price in the land price list. However, most localities still use the old land price list. This causes the starting price to always be low, thereby creating loopholes for subjects to push up prices and profit.

“However, following media reports, the State has intervened promptly, and many auctions have been postponed pending a review of the auction process in accordance with the provisions of the new Land Law. As a result, the successful transaction price has returned to a level closer to or only slightly increased by 10% compared to the market price,” commented a VARS expert.

Source: https://baodautu.vn/batdongsan/chung-cu-lien-tuc-duoc-hoi-mua-dat-nen-duoc-gom-de-xay-san-pickleball-d227290.html