Surplus of luxury apartments, lack of affordable housing for the majority of people, assessment of the impact of the new land price list in Ho Chi Minh City, procedures for buying and selling apartments in 2024... are the latest real estate news.
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| Latest real estate: In Hanoi and Ho Chi Minh City, there is no longer a segment of apartments with prices suitable for the income of the majority of people. (Photo: Hai An) |
Real estate prices skyrocket
The National Assembly's monitoring delegation has just sent delegates a report on the monitoring results of "Implementation of policies and laws on real estate market management and social housing development from 2015 to the end of 2023".
Looking back at the period 2015-2021, the market has developed vigorously and strongly, with abundant supply, and many new types of real estate such as: tourist apartments (condotels), resort villas... However, the Supervisory Team assessed that "there are inadequacies" in the unreasonable structure of real estate products, imbalance in supply and demand, mainly targeting the high-end segment, financial investment goals, and few products suitable for the income of the majority of people.
In the period of 2022-2023, the real estate market declines, the operations of enterprises face many difficulties due to the shortcomings and limitations of the period of 2015-2021 exposed under the pressure of the Covid-19 epidemic. At this time, the supply is much more limited than in the previous period. Real estate prices skyrocket compared to the increase in income of the majority of people.
In Hanoi and Ho Chi Minh City, there is no longer a segment of apartments with prices suitable for the income of the majority of people.
Statistics show an increasingly large gap in the structure of real estate products. According to a report by the Hanoi People's Committee, the mid-range and high-end apartment segment accounts for the majority. In 2022, apartment prices increased very high, the number of transactions was low, accounting for only about 10% of the products offered on the market, the price of individual houses remained high and there were almost no transactions.
In Ho Chi Minh City, the volume of real estate transactions has decreased sharply, real estate prices have increased uncontrollably, and there is an imbalance between price and value. According to the Ho Chi Minh City Real Estate Association, from 2021, the affordable apartment segment (priced under VND 25 million/m2) will no longer exist in the city.
Meanwhile, a large number of housing real estate projects are facing difficulties, delays, and delays, causing a huge waste of land and capital that businesses have invested in the projects. This increases difficulties and costs for investors, increasing product prices.
The report of the Monitoring Team also pointed out the inadequacy when the market has an excess of high-end housing products, large areas, high prices but lacks social housing products and low-cost housing suitable for the needs of the majority of people. In addition, the average price of social housing is still too high compared to the income of beneficiaries.
In addition, the slow disbursement of the social housing loan program, workers' housing, renovation and reconstruction of old apartments from the VND120,000 billion credit package, complicated conditions and procedures, high interest rates, and ineffectiveness in attracting and encouraging investors and social housing buyers to access this credit package are significant obstacles to the development of social housing.
Based on the above reality, the Supervisory Delegation recommends that one of the tasks that needs to be done immediately is to propose specific solutions to effectively implement the Project to invest in building at least 1 million social housing apartments for low-income people and industrial park workers in the period of 2021-2030, ensuring progress, quality and suitability to the needs, working and living conditions of beneficiaries.
In the long term, the Supervisory Delegation recommends early completion of research, proposals for amendments, supplements, and promulgation of new tax laws, with provisions on higher tax rates for those who use large areas of land, many houses, are slow to use land, or leave land fallow, ensuring consistency with the innovative contents of land laws, improving the efficiency of land management and use, achieving the goal of income redistribution and mobilizing reasonable and stable revenue sources for the state budget, on the basis of referring to international practices and in accordance with Vietnam's socio-economic conditions.
Hanoi apartment prices continue to hit new highs
According to online data from Batdongsan.com.vn, Hanoi apartments have continuously reached new peaks in price in a short period of time. At the beginning of 2018, the selling prices of apartments in Hanoi and Ho Chi Minh City were VND27 million/m2 and VND31 million/m2, respectively. However, after 6 years, by 2024, the average price increase of apartments in Hanoi reached 70%, while the increase of apartments in Ho Chi Minh City was lower, reaching 55%.
Data from the Vietnam Association of Realtors also confirms the rapid increase in prices of Hanoi apartments. Accordingly, the Hanoi apartment price index in 2023 increased by about 38 percentage points compared to 2019. Meanwhile, the apartment price index in Ho Chi Minh City only increased by about 16 percentage points. In fact, the price increase of apartments is still continuing and has tended to be stronger recently with an average increase of 100-200 million VND/month.
Faced with the above situation, Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, commented that for the apartment market, the average increase of a project will fluctuate from 8-12%. This is considered a positive increase. If the price increase rate is higher than the average increase, the market is showing signs of being unsustainable.
Regarding the Hanoi apartment market, Mr. Tuan said that apartment prices have been increasing continuously in recent times, even in a short period of time, prices have continuously jumped. Therefore, at a certain threshold, maybe in the next 2-3 years, Hanoi apartment prices will not increase, if they increase, the increase will be slow, only fluctuating around 5-6%.
Prevent "land brokers" from taking advantage of adjusted land price lists to "inflate" prices
Regarding the adjusted land price list recently issued by the Ho Chi Minh City People's Committee and applied from October 31 to December 31, 2025, real estate experts have commented on the impacts.
According to Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association (HoREA), the adjusted land price list is built in compliance with the principle of valuation according to market prices. The drafting agency has received many comments from the business community and experts.
Compared to the draft released for comments at the end of July, the Chairman of HoREA said that the newly issued land price list has been adjusted and changed "reasonably" in a positive direction.
For example, in Hoc Mon district, according to the draft, land prices in some places increased 50.7 times compared to the 2020 price list, but with the adjusted price list, this level only increased nearly 40 times.
Regarding the impact, according to Mr. Chau, the adjusted land price list ensures fairness between those who have fulfilled their financial obligations in the first 10 months of this year compared to cases from October 31 onwards.
“The adjusted land price list has not yet had an immediate impact on the real estate market because commercial housing projects are currently priced using the surplus method. But after a while, when investors receive the transfer of land use rights to carry out projects, people will want higher prices than before, leading to an increase in housing prices,” said Mr. Chau.
The Chairman of HoREA recommended that state agencies should take measures to control the activities of “speculators, land brokers, and dishonest businesses”, because this group of people can take advantage of the adjusted land price list to speculate and “inflate” prices.
Procedures for buying and selling apartments in 2024
According to Article 160 of the 2023 Housing Law, transactions on buying and selling houses must meet the following 6 conditions.
Specifically, (1) Have a Certificate as prescribed by law.
(2) Not in a case of dispute, complaint, or lawsuit regarding ownership rights according to the provisions of law on dispute resolution, complaints, and denunciations.
(3) Within the housing ownership period in case of limited-term housing ownership.
(4) Not subject to seizure to enforce a judgment or to enforce an administrative decision that has come into legal effect of a competent state agency or not subject to application of temporary emergency measures or preventive measures according to a decision of a Court or competent state agency.
(5) Not in cases where there has been a decision to reclaim land or a notice of clearance or demolition of housing by a competent authority.
(6) The conditions specified in points (2) and (3) do not apply to the purchase and hire-purchase of future housing.
Note: The following housing transactions do not require a Certificate of Housing: Buying and selling future housing; selling housing in case of dissolution or bankruptcy; Organizations donating houses of gratitude, charity, and solidarity.
Buying and selling available houses of investors in housing construction investment projects in the following cases: houses belonging to public property; social housing, housing for the people's armed forces, housing serving resettlement not belonging to public property; Receiving inherited houses.
Documents proving housing conditions for participating in transactions specified in this clause shall comply with Government regulations.
Source: https://baoquocte.vn/bat-dong-san-moi-nhat-gia-chung-cu-ha-noi-lien-tuc-leo-dinh-khong-con-can-ho-vua-tui-tien-ngan-co-dat-thoi-gia-o-tphcm-291395.html
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