Rapidly rising housing prices are a big challenge compared to people's incomes.

DNVN - Hanoi's apartment market is witnessing a strong recovery. However, the rapid growth of housing prices compared to people's income is posing many challenges.

According to the latest report from Savills Hanoi, in the third quarter of 2024, the primary supply of this segment reached 673 units, up 11% compared to the previous quarter but down slightly by 7% compared to the same period last year. However, new supply from existing projects such as Thanh Lam Dai Thinh 2, Solasta Mansion and Him Lam Thuong Tin has brought diversity to the market, especially the shophouse type.

Ms. Do Thi Thu Hang - Senior Director of Research and Consulting Department of Savills Hanoi said that the primary price of villas and townhouses tended to decrease slightly compared to the previous quarter, mainly due to the increase in supply from suburban projects with more competitive prices. Specifically, the primary price of villas decreased by 16% to VND150 million/m2 of land, while the price of townhouses decreased by 17% to VND156 million/m2 of land.

The market for villas and townhouses in Hanoi shows signs of positive recovery.

However, the secondary market recorded impressive growth with villa prices 13% higher than primary prices, reaching VND169 million/m2 of land. Townhouses also increased by 4% quarter-on-quarter, reaching VND187 million/m2 of land. This shows that villas and townhouses are still highly appreciated by investors and they are willing to pay higher prices in the secondary market.

The absorption rate of the villa and townhouse market in Q3/2024 reached 48%, a significant increase compared to previous quarters. This improvement was driven by successful transactions at projects such as Thanh Lam Dai Thinh 2, An Quy Villa, Solasta Mansion and Him Lam Thuong Tin.

Projects in suburban areas such as Ha Dong, Me Linh and Thuong Tin have attracted great interest from buyers. Me Linh leads in primary transactions with 37%, followed by Ha Dong with 33% and Thuong Tin with 12%. This shows that the trend of moving to the suburbs to find spacious living space and suitable prices is increasing.

It is forecasted that absorption will continue to increase in the coming time, especially when the Vinhomes Global Gate project is completed and provides about 2,599 units to the market in October 2024. In addition, the appearance of new projects such as Him Lam Vinh Tuy and the opening of additional supply at Solasta Mansion will also contribute to the excitement of the market.

Commenting on housing prices in Hanoi, Savills Hanoi said that in the context of the real estate market gradually recovering, the apartment segment in Hanoi has recorded positive signals in the first 9 months of 2024. Specifically, new supply increased sharply, transactions were active, and prices continued to increase.

Hanoi’s apartment market welcomed more than 12,000 new apartments in the first nine months of the year. In the third quarter alone, this figure reached 5,265 units, a sharp increase of 95% compared to the previous quarter and 178% compared to the same period last year. The increase in supply mainly came from large projects such as Lumi Hanoi and QMS Top Tower, accounting for 66% of the market share.

However, compared to the same period last year, primary supply still decreased by 47%. Notably, although primary supply was somewhat limited, the number of apartments sold increased sharply, reaching 6,840 units in the third quarter, up 35% quarter-on-quarter and 226% year-on-year.

In total, 17,000 apartments were successfully traded in the first nine months of the year, just below the level in 2019 and far exceeding 2020, when the market was heavily affected by the COVID-19 pandemic.

Housing prices in Hanoi continue to rise. Primary prices are currently at VND69 million per square meter, up 6% quarter-on-quarter and 28% year-on-year. In the secondary market, the average price of apartments in the third quarter was VND51 million per square meter, up 10% quarter-on-quarter and 41% year-on-year.

In Q4/2024, the market is expected to welcome 9,700 new apartments, of which 88% will come from the next phases of large projects. From 2025 onwards, about 110,000 units from 106 projects will be launched. Grade B will continue to lead with 54% of future supply.

"The Hanoi apartment market is witnessing a strong recovery after the difficulties caused by the pandemic. However, the rapid growth of house prices compared to people's income is posing many challenges.

The government and authorities need to have appropriate solutions to stabilize the market and support people in accessing housing," Ms. Hang recommended.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/bat-dong-san/gia-nha-tang-nhanh-la-thach-thuc-lon-so-voi-thu-nhap-nguoi-dan/20241010083929045