Apartment prices continue to break the peak, the segment is dominating the market in Ho Chi Minh City, Hanoi finalizes the progress of rebuilding a series of old houses on 'golden land'

The average primary selling price of apartments in Ho Chi Minh City is currently 76 million VND/m2, an increase of nearly 24% year-on-year. (Source: Thanh Nien)

Prices of apartments and villas in Ho Chi Minh City increase sharply

According to CBRE Vietnam, the average primary selling price of apartments in Ho Chi Minh City (HCMC) is currently VND76 million/m2, up nearly 24% year-on-year. This increase is due to more than 70% of new supply in 2024 in the City being high-end to luxury projects and projects opening for sale in the next phase adjusting their selling prices to increase by 10-40% compared to the previous phase.

In fact, after the limited supply of new launches in 2023, the supply of townhouses/villas for sale in 2024 reached more than 230 units for sale, 8 times higher than the previous year. The largest new supply in the year came from a project in the West (Binh Chanh district) with more than 130 units for sale since the beginning of the third quarter.

The primary selling price of townhouses/villas in Ho Chi Minh City reached VND310 million/m2 of land as of Q4/2024, up 13% year-on-year but down 1% compared to Q2/2024, with new supply at high prices of VND680 - 900 million/m2 of land from projects in Thu Thiem and Phu My Hung areas.

CBRE Vietnam CEO Duong Thuy Dung said that most apartment segments recorded an increase in secondary selling prices in the fourth quarter of 2024; in which, the luxury apartment segment with convenient locations connecting to the center continued to record the most outstanding annual transfer price increase with an increase of nearly 14% compared to last year.

On the other hand, Metro Line 1 will begin commercial operation from the end of December 2024, leading to projects along the route, typically in the former Districts 2 and 9 of Thu Duc City, recording an average secondary selling price increase of 2-3% quarterly and nearly 15% annually.

According to JLL Vietnam, in the fourth quarter of 2024, the high-end apartment market recorded 559 successful transactions, with the majority of transactions coming from the Eastern region.

In Binh Duong province, Batdongsan also pointed out that Binh Duong apartment prices are currently increasing by an average of 7-10% compared to 2023, depending on the project and area. The price level here is differentiated by area, in which Thuan An and Thu Dau Mot cities have prices of 40-60 million VND/m2, while Di An city has prices of 35-45 million VND/m2 thanks to some affordable projects. In general, Binh Duong housing prices are quite high compared to the average in Long An (23-30 million VND/m2) and Dong Nai (35-38 million VND/m2).

CBRE Vietnam believes that the outlook for the coming years shows that the supply of real estate attached to land in Ho Chi Minh City will improve thanks to new urban projects being implemented in the East and South. The city's new supply in 2025 is expected to reach about 2,000 units, 8 times higher than in 2024.

Currently, the Ho Chi Minh City People's Committee is resolutely removing legal obstacles for key projects, with eight projects being considered for resolution in 2024 and 22 projects continuing to be consulted for handling in 2025. Along with the completion of large-scale infrastructure projects next year, the market is expected to be more prosperous than in 2024.

According to Trang Le, Senior Director of Consulting and Research at JLL Vietnam, in the context that the Ho Chi Minh City real estate market is dominated by the high-end housing segment and lacks commercial housing projects with prices suitable for the financial capacity of the majority of people, the market is expected to receive more supply in the lower-priced segment in 2025.

These projects will mostly be located in areas outside the 10km radius from the center. Preferential policies to stimulate demand will also continue in the coming time.

Commenting on the housing market in general, CBRE Vietnam Managing Director Duong Thuy Dung said: “2025 will mark the beginning of a new cycle of the housing market. The market is expected to develop more stably and sustainably, when it has time to adapt to the revised laws along with new circulars and implementation guidelines.

This creates a clear legal environment, encourages investors to participate in project development, and opens up opportunities for more people to access and buy houses more easily."

Hanoi apartment prices continue to hit new highs

Hanoi real estate market is recording many positive signals with the heat of the apartment, land and private house segments. In particular, apartment prices are continuously increasing, transaction volume and interest are increasing sharply in both primary and secondary markets.

The affordable apartment segment is completely absent from the market, and mid-range apartments are also increasingly scarce. Newly launched apartment projects all have starting prices from 60 million VND/m2 or more, and some high-end apartment projects in the suburbs of Hanoi are even offered for sale at hundreds of millions of VND/m2, much higher than high-end apartment projects in the inner city.

The strong growth of the apartment segment reflects the heat of the market, but also poses major challenges in housing accessibility for people, especially those with average and low incomes.

Commenting on the apartment segment, Mr. Vo Huynh Tuan Kiet - Director of CBRE Vietnam's housing marketing department - said that more than 80% of the apartment supply in Hanoi belongs to the high-end housing segment. In the fourth quarter of 2024, the primary selling price of apartments in Hanoi continued to increase sharply, reaching an average of VND 72 million/m2. This is the highest price ever recorded in the capital's real estate market, up 36% over the same period last year and 12% over the third quarter of 2024.

“2024 is the year that will witness a huge increase in prices in the apartment segment, especially in Hanoi. The market has a lot of room for new products as well as a lot of room for price adjustments,” said CBRE experts.

In early 2024, the market started with an average price of about VND65 million/m2. However, after only two quarters, the price exceeded VND68 million/m2 and continued to climb in the last months of the year. New projects launched this year focused on the high-end segment in areas such as Nam Tu Liem, Cau Giay and Gia Lam, Dong Anh with prices regularly exceeding VND70 million/m2.

Not only in the primary market, the secondary market also recorded excitement, when many investors took advantage of the price increase to sell, further pushing the market heat up.

The rising price of apartments is creating great opportunities for investors, but at the same time it also poses significant challenges for homebuyers, especially those with low and middle incomes. (Source: DN&TT)

The main reason for this price increase comes from the imbalance between supply and demand. New supply continues to be limited, especially in the mid-range and low-end segments, leaving buyers with few options within a reasonable price range. At the same time, high-end and luxury projects are increasingly taking up a large proportion, leading to a significant increase in the average price of the market.

In addition, input costs for projects, including construction materials, labor and financial costs, are all increasing amid inflation and fluctuating interest rates. The market's recovery sentiment after the 2022-2023 slump is also an important factor stimulating buying and selling demand.

The rising price of apartments is creating great opportunities for investors, but at the same time it also poses significant challenges for homebuyers, especially those with low and middle incomes. In this context, developing more affordable housing projects and controlling selling prices are urgent solutions to ensure sustainable development for the Hanoi real estate market.

Hanoi finalizes planning progress to rebuild a series of old houses on 'golden land' in the center

In January, the People's Committee of Hai Ba Trung district must submit to the Hanoi People's Committee for approval the detailed planning task, scale 1/500, of the three old apartment buildings of Bach Khoa, Thanh Nhan, and Quynh Mai.

The above direction is stated in Notice No. 07 on the conclusion of Vice Chairman of the City People's Committee Duong Duc Tuan at the working session on the implementation of detailed planning for renovation and construction of old apartment buildings in Hai Ba Trung district, which has just been issued.

Accordingly, the city leaders requested Hai Ba Trung district to speed up the progress of detailed planning for renovating and rebuilding old apartment buildings in the district.

Specifically, regarding the implementation progress, in January, submit to the City People's Committee for approval of the detailed planning task, scale 1/500 for 3 apartment complexes Bach Khoa, Thanh Nhan, Quynh Mai (scale of more than 2 hectares). In February, submit to the City People's Committee for approval of the detailed planning project, scale 1/500.

For 5 apartment complexes including Dong Tam, Minh Khai - Quynh Loi, Bach Mai, Dong Nhan - Dong Mac, Vinh Tuy (scale of more than 2 hectares), in the second quarter of 2025 (striving for April 2025), submit to the City People's Committee for approval of tasks and detailed planning projects at a scale of 1/500.

Also in the second quarter, the People's Committee of this district was asked to submit for approval the master plan at a scale of 1/500 for 15 groups of old apartment buildings with a scale of less than 2 hectares.

In addition, in the project of investing, renovating and rebuilding Nguyen Cong Tru collective housing area, Hai Ba Trung District People's Committee coordinated with the Department of Planning and Architecture to synchronize with the urban subdivision planning H1-4, scale 1/2,000 and current regulations. In addition, it is proposed to report to the City People's Committee to consider the detailed planning of the project of investing, renovating and rebuilding Nguyen Cong Tru collective housing area in January 2025.

The leaders of the City People's Committee also requested the People's Committee of Hai Ba Trung District to urgently establish a project to collect and resettle about 42 separate old apartment buildings.

Recently, the Hanoi People's Committee issued a decision approving the detailed planning task for the renovation and reconstruction of Nghia Tan residential area, scale 1/500 in Nghia Tan ward, Cau Giay district.

Accordingly, the total area for research and detailed planning is about 31.6 hectares. The decision clearly states that the time to complete the detailed planning project is 6 months from the date of approval of the planning task.

131 land lots to be auctioned in Giao Thuy district, Nam Dinh

It is known that the Nam Dinh Province Property Auction Service Center and the Giao Thuy District Department of Natural Resources and Environment will organize an auction of the right to use 25 land lots, which are assets of the Giao Thuy District People's Committee, on the morning of January 20.

The auctioned lots are located in the residential area of ​​Giao Chau commune. Area from 117 - 292.5m2. Unit price from 8 - 8.5 million VND/m2, equivalent to 936 million to over 2.3 billion VND/lot. The price step applied to all auction lots is 100,000 VND/m2. The deadline for receiving auction participation documents is January 17 at the Nam Dinh Province Property Auction Service Center and the headquarters of the People's Committee of Giao Chau commune.

Auction method by direct voting, one round for each land lot at the auction; ascending price method. The auction will take place at the People's Committee of Giao Chau commune, Giao Thuy district (Nam Dinh).

On the same day, the Nam Dinh Province Property Auction Service Center and the Giao Thuy District Department of Natural Resources and Environment will continue to auction 106 land lots, which are assets of the Giao Thuy District People's Committee.

Specifically, the auctioned land lots are in the residential area of ​​Giao Ha commune. The area of ​​the lots ranges from 85.7 - 182.5m2. The unit price ranges from 7 - 8.8 million VND/m2, equivalent to 599.9 million VND to more than 1.3 billion VND/lot. The deadline for receiving auction participation documents is January 17 at the Nam Dinh Province Property Auction Service Center and the headquarters of the People's Committee of Giao Ha commune.

Auction by direct voting, one round for each lot at the auction; ascending bid method. The auction will take place at the People's Committee of Giao Ha commune, Giao Thuy district (Nam Dinh).

Source: https://baoquocte.vn/bat-dong-san-gia-chung-cu-tiep-tuc-pha-dinh-phan-khuc-dang-thong-tri-thi-truong-tphcm-ha-noi-chot-tien-do-xay-lai-loat-nha-cu-tren-dat-vang-300466.html