(Dan Tri) - Apartment prices in Hanoi have increased rapidly since the beginning of the year, approaching those in Ho Chi Minh City. Experts predict that prices may continue to increase and be 3% to 5% higher than Ho Chi Minh City.
At the market conference organized by Cafeland this morning (October 24), Mr. Vo Huynh Tuan Kiet - Director of Housing Marketing Department, CBRE Vietnam - predicted that apartment prices in Hanoi will continue to increase in the coming time, possibly reaching 66-67 million VND/m2 by the end of this year. In 2025, apartment prices in Hanoi are expected to continue to increase, at a price 3-5% higher than in Ho Chi Minh City.
Responding to Dan Tri reporter about the reason for the increase in apartment prices in Hanoi, Mr. Kiet explained that in the past 3-5 years, apartment prices in Hanoi were on average 15-20% lower than in Ho Chi Minh City. However, currently, apartment prices in Hanoi are approaching those in Ho Chi Minh City.
In the third quarter, the above unit's data showed that the average apartment price in the primary market in Hanoi reached 64 million VND/m2, up 26% year-on-year. Meanwhile, in Ho Chi Minh City, the price reached 66 million VND/m2, slightly higher than Hanoi.
Apartments in Ho Chi Minh City and Hanoi are competing in price (Photo: Nam Anh).
One of the first reasons Mr. Kiet mentioned is supply. The supply of new apartments in Ho Chi Minh City is not much, the price increase is about 2-4%/year. In contrast, Hanoi is driven to increase prices by large urban projects, with an area of several hundred hectares, expanding in both the East and West.
Hanoi also attracted many investment flows, many investors from the South went to the North to look for land funds, bringing with them countless familiar investors, creating great demand in the short term. Meanwhile, Ho Chi Minh City did not have many large projects developed at this stage.
He also stated that the current product sources in Hanoi have designs and quality approaching those of Ho Chi Minh City. Many foreign investors are also increasing their investment in Hanoi, so the quality of products in the capital is also approaching that of Ho Chi Minh City.
Land fund, infrastructure, and the interest of investors and developers at the same time are factors driving price increases in Hanoi. Many projects in Hanoi in previous years were implemented well, and product prices increased, but not as much as this year. In addition, psychological factors are also very important.
"In a short time, many people rushed into the Hanoi market, causing the liquidity of newly opened projects to reach 90-100%. The speed and pace of price increase in 9 months happened very quickly. As observers, we saw abnormalities, including many psychological abnormalities, buyers were afraid of missing out on investment opportunities," said Mr. Kiet.
Many market research units also pointed out that apartment prices in Hanoi have increased significantly in recent times.
Savills Vietnam announced that in the third quarter, the average primary price of apartments in Hanoi reached 69 million VND/m2, up 28% year-on-year. The popular price segment is apartments over 4 billion VND, accounting for 70% of the number of apartments sold. Apartments from 2 billion VND to 4 billion VND account for 29% of the market share.
Ms. Do Thu Hang - Senior Director of Research and Consulting Department of Savills Hanoi - commented that apartments in Hanoi are still attractive thanks to their suitable total value, versatility and profit potential compared to other investment channels.
Ms. Trang Bui - General Director of Cushman & Wakefield - also recorded that the average primary price of apartments in Hanoi reached about 70 million VND/m2, up 26% year-on-year. Compared to the same period last year, this price increase was driven by increasing new supply from the high-end and luxury segments, while the supply of affordable apartments remained limited.
Mr. Su Ngoc Khuong - Senior Director of Savills Vietnam - said that at this time, people with money should just save and find suitable products to buy. Both Ho Chi Minh City and Hanoi are facing difficulties in urban housing. Apartment prices are increasing, creating pressure for young people (generation born in 2000 and later) to buy a house. It is predicted that it will take young people an average of 20-30 years to buy a house.
Source: https://dantri.com.vn/bat-dong-san/gia-can-ho-ha-noi-da-tang-va-tiep-tuc-tang-vuot-tphcm-20241024140919263.htm
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