Apartment prices continue to rise
According to Tien Phong , although the real estate market has not yet overcome its difficulties, apartment prices are still increasing in both Hanoi and Ho Chi Minh City. There are even apartment segments that cost up to 200 million VND/m2 while the supply of housing, especially low-cost housing, is making the dream of settling down for many people even more difficult.
According to the Ministry of Construction, interest in apartments has shown signs of recovery, with demand for buying apartments increasing by 1% and for renting apartments increasing by 6% compared to the previous quarter.
Of which, apartments priced from 2 to 4 billion VND are the most sought after, in big cities there are now signs of good absorption, concentrated in the apartment and housing segment priced under 10 billion VND in central areas.
For the Hanoi market, the Ministry of Construction assessed that in the primary market, the average selling price of newly opened apartments in the third quarter increased by nearly 7% quarter-on-quarter, increased by 14% year-on-year and reached about VND50.8 million/m2.
"The price adjustment is on an upward trend due to the overwhelming proportion of new supply in the high-end segment (over 90%). Along with that, some investors have adjusted prices up and opened for sale additional inventory on higher floors," the Ministry of Construction assessed.
In the secondary market, the average selling price maintained its upward trend from the previous quarter, reaching about VND32 million/m2, up 2.7% quarter-on-quarter and 0.8% year-on-year. All districts in Hanoi recorded secondary selling prices increasing by over 3% compared to the previous quarter.
Although the real estate market has not yet overcome its difficulties, apartment prices are still increasing in both Hanoi and Ho Chi Minh City. Illustrative photo from the internet
In the mid-range segment, apartments have quite diverse prices such as Moonlight 1 - An Lac Green Symphony project (Hoai Duc district) with selling price from 39 - 42 million VND/m2, Hoang Thanh Pearl project (Nam Tu Liem district) with price from 45 - 50 million VND/m2, Sakura subdivision of Vinhomes Smart City project (Nam Tu Liem district) with price from 43 million VND/m2...
The selling price of luxury apartments in Hanoi ranges from 51 - 82 million VND/m2.
In Ho Chi Minh City, about 60% of new supply in the first nine months of the year came from an urban area project in the east. About 96% of the quarter's new supply came from the high-end segment and the remaining 4% of new supply was in the luxury segment.
Primary selling price of HCMC apartment market in the third quarter reached over 60 million VND/m2
According to the Ministry of Construction, the selling price of some affordable apartments (priced from 25 - 35 million VND/m2) typically the Diyas Sky studio apartment project (Tan Binh district) has an offering price of about 25.5 - 32 million VND/m2, the Citi Alto apartment project has an offering price of about 29 - 34 million VND/m2.
Mid-range apartments (priced at around 30 - 50 million VND/m2) typically include An Gia Skyline project (District 7) with an asking price of 39 million VND/m2, Happy Valley (District 7) around 48.2 million VND/m2, Royal Park Riverside (District 8) around 35 million VND/m2.
Notably, luxury apartments (with prices above 50 million VND/m2) are currently quite diverse in price, many apartments have sky-high prices, such as the Empire City - The Monarch project in Thu Thiem urban area with prices of about 200 million VND/m2, Thao Dien Green (Thu Duc City) with prices of about 100 million VND/m2, The Beverly Solari subdivision of Vinhomes Grand Park (Thu Duc City) 47 - 66 million VND/m2.
Get well soon
Ms. Duong Thuy Dung, CEO of CBRE Vietnam, predicts that the mid- and low-end apartment segment will have the first upward movement around the third quarter of 2024. Currently, Ms. Dung believes that the supply of this segment is very low and when there are signs of recovery in supply, buyers will have more choices with apartment projects, especially when many investors are actively launching projects with prices close to real buyers.
For high-end and luxury apartments, product quality will be improved to meet the needs of customers who are willing to pay. Customers' criteria are increasingly strict. They demand more in terms of quality, especially green and safe factors, associated with long-term benefits for the health of residents.
Regarding selling prices, Ms. Dung said that in the primary market, the selling price level will not decrease but the price increase rate will not be too high, only below 10% for each segment and each area of the project. Because in the structure of products offered for sale in the coming time, the proportion of mid-high-end apartment supply may still account for the majority of the total product basket. Thus, the selling price level will be at an average of 7 - 10%/year.
In the secondary market, the market has been very difficult recently, liquidity is temporarily reduced, but in the medium and long term, prices are still growing strongly. Because currently the real demand of home buyers is still high in both Hanoi and Ho Chi Minh City. Meanwhile, the supply to supply the market is scarce.
CBRE representative said that another reason why the selling price level in 2024 will remain high is because investors are increasingly focusing on project and product quality.
On the other hand, in areas with good infrastructure support, real estate in that area will have good price increases. For example, in Ho Chi Minh City, there is the Eastern area thanks to the Metro line, and in Hanoi, there is the Vinh Tuy bridge in the Eastern area, or the West Lake area has the Lotte Mall project, the real estate value in these areas will immediately increase.
Regarding liquidity, Ms. Dung predicts that in the last months of 2023, market liquidity will improve compared to the first half of the year. In fact, some projects offered for sale in July had absorption rates of up to 80 - 90%.
Entering 2024, the absorption rate in the apartment market will remain at a positive level. Because the supply in 2024 will not have too many expensive or luxury products, but there will be more products that are more suitable for people's budgets, and if the price is higher, the quality is also better, so people are willing to pay for such products.
Mr. Vu Cuong Quyet, General Director of Dat Xanh Mien Bac, also predicted that the affordable commercial housing segment will have a strong recovery. As for high-end housing with prices from 40 million VND/m2 or more, the recovery will be slower. As for townhouses, villas, and shophouses located in big cities (Hanoi, Ho Chi Minh City), they will be able to recover faster than similar products but far from large urban centers. As for the land segment in the provinces, Mr. Quyet predicted that it will take longer to recover.
Dao Vu (T/h)
Source
Comment (0)