Apartment prices skyrocket, home buyers have a wait-and-see mentality

Apartment transactions decrease, prices increase

According to the second quarter 2024 report on housing and real estate market of the Ministry of Construction, the number of transactions of apartments and individual houses recorded 25,885 successful transactions.

According to the comparison of the Ministry of Construction, the number of land transactions reached 124,991 successful transactions. Specifically, the number of apartment and individual house transactions was 72.2% compared to the first quarter, 87.08% compared to the same period in 2023; the number of land transactions was 127.9% compared to the first quarter of this year and 185.8% compared to the same period in 2023.

In the second quarter of 2024, apartment prices increased by an average of 5-6.5% compared to the previous quarter and increased by 25% compared to the same period last year. Many projects in Hanoi increased by up to 20-30%. In Ho Chi Minh City, the selling price of apartments in some mid-range projects increased by 2-5%, some increased by 10-18%.

Primary and secondary apartments both increase in price (Photo: Ha Phong)

The sudden increase in apartment prices has slowed down.

The Ministry of Construction said that apartment prices increased not only in newly opened projects but also in many old apartments that have been used for many years. However, this situation only occurred in a short period, and at the same time showed signs of slowing down at the end of the quarter because prices were already high and buyers were in a wait-and-see mode.

Speaking to Dan Tri reporter, Mr. Nguyen Van Dinh - Chairman of Vietnam Association of Realtors (VARS) - said that the reason for the sudden increase in apartment prices is due to the scarcity of supply. Supply is smaller than demand, so prices are forced to increase to ensure balance. Although the price increase shows signs of impact, creating confusing information from speculators creating virtual supply and demand to push up prices in the resale market.

He believes that apartment prices will have some adjustment points, but not much. To stabilize apartment prices, there needs to be coordination between state agencies and market participants. In addition, customers and investors need to be alert, choosing products that are suitable for their financial capacity and legal guarantees. Home buyers should absolutely not follow the "fever" or the crowd movement.

Sharing at a recent event, Mr. Pham Duc Toan - General Director of EZ Real Estate Investment and Development Joint Stock Company - said that in the recent period, looking at the entire dark market, the apartment segment alone has quietly increased in price, especially in the Hanoi market. In Ho Chi Minh City and Da Nang, prices have been high, so the rate of price increase is not clearly visible.

“After Tet, I was shocked by the speed of apartment price increases, some locations increased every day. For example, in Trung Hoa Nhan Chinh, the speed of price increase was shocking to those of us in the profession,” said Mr. Toan.

According to him, with the difficult market situation, the difficult economy and people's income, this price increase is unusual. However, the apartment segment has stabilized so far. "I compare the recent increase in apartment prices to a summer storm, increasing quickly and going away quickly," said Mr. Toan.

Source: https://dantri.com.vn/bat-dong-san/gia-chung-cu-tang-vun-vut-nguoi-mua-nha-co-tam-ly-cho-doi-20240815105609598.htm