Despite the growing inventory, prices are still skyrocketing, the market is entering the year-end season, price list of 14 newly opened apartments

Inventory is increasing, real estate prices are still on the rise, apartment prices in Ho Chi Minh City hit 80 million VND/m2, Hanoi reclaimed more than 7,100 m2 of land... are the latest real estate news.

Despite the sharp increase in inventory, real estate prices in some localities still tend to increase, especially in Hanoi, Ho Chi Minh City and major cities. (Photo: Linh An)

Real estate inventory is expanding

According to the Ministry of Construction, in the third quarter of 2024, the inventory of apartments, individual houses, and land plots was 25,937 products, an increase of 52% compared to the second quarter. The data is based on statistics from 60/63 localities.

The above inventory is of projects that are eligible for trading according to the law but have not been traded in the reporting period. Of which, the inventory of apartments in this quarter is 4,688 units, individual houses 12,250 units, and land plots 8,999. The inventory of individual houses and land plots in the third quarter alone increased by 150.6% compared to the previous quarter.

The Ministry of Construction also said that there were more than 141,360 transactions of apartments, individual houses and land plots in the last quarter. Of these, nearly 103,000 transactions were of the land plot type, accounting for 73%.

Compared to the second quarter, the volume of transactions of apartments and individual houses has tended to increase, while land transactions have decreased by 18%.

Despite the sharp increase in inventory, real estate prices in some localities still tend to increase, especially in Hanoi, Ho Chi Minh City (HCMC) and major cities.

The Ministry of Construction assessed that the price increase phenomenon is localized, occurring in some areas, types, and real estate segments, leading to an impact on increasing general prices.

Regarding apartments, apartment prices in Hanoi and Ho Chi Minh City continued to increase in both new and old projects. The average price of new projects increased by about 4-6% per quarter and 22-25% per year. Some areas even increased locally by about 35-40% compared to the previous quarter.

Regarding villas and townhouses in projects, the Ministry of Construction said that in Hanoi, prices tend to continue to increase compared to the previous quarter. Most of the newly launched projects in this quarter are in favorable locations, located in areas with strong investment in infrastructure, so the primary asking price is relatively high.

In Ho Chi Minh City, primary prices are almost stable. Some areas have seen sharp price drops in the high-end, large-area segment, down about 14% quarterly and 28% annually. In particular, products priced under VND10 billion have quite good transactions.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that inventory is normal if it is part of the business plan and strategy of the enterprise. The worrying issue with inventory is that the products have been completed and sold on the market but are not accepted by the market, meaning the liquidity is low.

According to Mr. Chau, large inventories for weak businesses, using high financial leverage will be a "mountain of debt" weighing on the business's shoulders, when there is no liquidity, the business will face difficulties.

The leader of a real estate company in Hanoi acknowledged that the reason for the real estate inventory situation, besides the fact that some businesses are having real difficulties in liquidating products, is also the phenomenon of "holding" goods waiting for prices to increase, looking for high profits.

In the above context, the Ministry of Construction recommends that real estate businesses proactively review and reduce costs, actively apply modern technology in construction to reduce product costs in accordance with the actual market situation, in the spirit of "harmonious benefits and shared risks".

In addition, businesses should also proactively resolve legal and capital difficulties, and be responsible for focusing all resources on handling bad debts to continue implementing projects, opening them to the market, and avoiding spreading investments.

HCMC: Apartment prices hit 80 million VND/m2

According to data from the OneHousing Center for Market Research and Customer Insights, the supply of newly opened apartments in Ho Chi Minh City in the third quarter of 2024 recorded the lowest number in the past 5 years (with 125 units), down 89% compared to the previous quarter. The main reason was identified as prolonged legal problems, affecting the progress of new projects.

In terms of sales, most of the projects with remaining inventory for sale had positive sales, recording 1,280 transactions in Q3/2024, down 25% compared to the previous quarter. The lack of new supply and the existing supply being mainly high-end and luxury projects pushed the average selling price of the entire HCMC market to continue to increase, reaching VND80.2 million/m2 (excluding VAT and maintenance costs), up 5% compared to Q2/2024.

The limited choice has forced homebuyers and investors to focus on only a few large projects with abundant apartments such as Vinhomes Grand Park. Therefore, the consumption of apartments in the city market is mainly concentrated in the East.

Newly launched projects will focus on the high-end and luxury segments.

According to OneHousing, in the fourth quarter of 2024, the supply of apartments in the HCMC apartment market will be significantly improved when a series of projects begin to be deployed for customers to reserve in the third and fourth quarters of 2024, such as the high-rise project The Global City by investor Masterise Homes. Based on the number of booked apartments recorded, the southern key market is expected to begin to recover consumption and achieve growth in the last months of 2024.

After the Laws related to Real Estate took effect from August 2024, old projects have had their legal problems resolved and have begun implementing their sales plans. This shows positive changes from new legal policies.

OneHousing forecasts that new supply in Ho Chi Minh City in 2025 will nearly double compared to 2024, about 12,000 units. However, newly opened projects are still mainly in the high-end and luxury segments, with expected prices at projects planned to launch in the near future all exceeding VND100 million/m2.

Commenting on this market, Mr. Tran Minh Tien, Director of OneHousing Customer Research and Understanding Center, said: The apartment market in Ho Chi Minh City is gradually escaping the stagnant period and is ready to welcome new waves of growth. In particular, the East - Thu Duc city with a large land fund and increasingly complete infrastructure is attracting the attention of many famous investors. The large-scale projects being implemented will create a completely new look for the area, Thu Duc city will become the center of the city's real estate market in the near future.

Price list of 14 newly opened apartments

In the fourth quarter of 2024, the market continued to record a series of new apartment projects opening for sale with many different prices, mostly high-end products.

Price list of 14 newly opened apartments. (Source: Lao Dong)

The real estate market is in the "season" of year-end sales, however home buyers still do not have many choices because most of the new products are in the high-end segment.

A noticeable feature is that the supply of new apartment projects in Hanoi is mainly concentrated in the West, located in the metropolitan area. In addition, there is also supply from projects in Dong Da, Ha Dong, Tay Ho, Hoai Duc, Gia Lam, Dong Anh...

According to Lao Dong Newspaper , the supply of new apartments is mostly high-end, luxury projects, lacking affordable housing products (mid-range, low-end), so the average price of primary products in Hanoi is quite high, around 60-120 million VND/m2. Even projects in suburban districts have selling prices of hundreds of millions of VND/m2, or the price of apartments in the central area is up to nearly 300 million VND/m2, equal to the price of townhouses, villas...

It can be seen that there is no shortage of newly opened apartments for sale in Hanoi, but the prices are too high because the projects for sale are mainly in the high-end, luxury segment with prices of over a hundred million VND per square meter.

Recently, the Hanoi Department of Construction has updated the list of future housing projects eligible for sale in the area, as of the end of August. Accordingly, the housing supply in the capital will soon have more than 5,300 apartments in 9 projects.

About 2 years ago, the housing supply in the Hanoi real estate market decreased sharply. In the first half of this year, the number of new projects and apartments launched on the market gradually recovered and increased again. However, affordable housing is still in short supply as investors mainly launched luxury and high-end products.

Savills data shows that the market had no new supply below VND45 million in the second quarter. Meanwhile, primary prices continued to increase by 18% per year from 2020 to now.

Hanoi: Reclaiming more than 7,100m2 of land

Recently, Vice Chairman of Hanoi People's Committee Nguyen Trong Dong signed Decision No. 5745/QD-UBND on the recovery of 7,178m2 of land at plot F2-NT1 under the planning of Tay Mo - Dai Mo - Vinhomes Park New Urban Area in Tay Mo ward; assigned to Nam Tu Liem District People's Committee to implement the project of building Tay Mo 3 Kindergarten, Tay Mo ward, Nam Tu Liem district.

Accordingly, reclaim 7,178m2 of land at the land plot marked F2-NT1 under the planning of the new urban area Tay Mo - Dai Mo - Vinhomes Park in Tay Mo ward, managed by Tay Ha Noi Urban Development and Investment Company Limited (now Thai Son Construction Investment Joint Stock Company), assigned by the City People's Committee in Decision No. 5612/QD-UBND dated October 19, 2018; hand over the reclaimed area at the land plot marked F2-NT1 mentioned above to the People's Committee of Nam Tu Liem district to implement the project to build Tay Mo 3 Kindergarten, Tay Mo ward, Nam Tu Liem district, according to the investment project approved by the People's Committee of Nam Tu Liem district for the feasibility study report in Decision No. 1220/QD-UBND dated June 7, 2022.

The location, boundary, and area of ​​the land bounded by points 1, 2, 3, and 4 are determined in the Master Plan Drawing, scale 1/500, prepared by Tan Minh Investment Joint Stock Company, appraised by the Urban Management Department of Nam Tu Liem District on October 25, 2022, and approved by the Nam Tu Liem District Construction Investment Project Management Board in Decision No. 333/QD-QLDA dated November 1, 2022.

The form of land allocation by the State is without collecting land use fees. The land use term is long-term. The method of land allocation is not through land use rights auction, not through bidding to select investors to implement projects using land.

The City People's Committee assigned the Nam Tu Liem District People's Committee to be responsible for contacting the Department of Natural Resources and Environment to receive land handover on site and issue the Certificate of land use rights and ownership of other assets attached to the land according to regulations. At the same time, contact the Department of Construction for instructions on construction procedures according to regulations. Be responsible for constructing works according to approved investment projects and planning and ensure compliance with current legal regulations on planning, investment, construction, land and other relevant regulations.

Use the land for the correct purpose, boundary, and area specified above; implement the investment project, accept and hand over the project for use in accordance with regulations on public asset management. Contact the Department of Finance for instructions on refunding the land clearance and infrastructure investment amount allocated at the land lot coded F2-NT1 to the investor of the Tay Mo - Dai Mo - Vinhomes Park New Urban Area Project (if any) in accordance with regulations.

The Department of Natural Resources and Environment is responsible for determining the boundary and handing over the land on the field to the People's Committee of Nam Tu Liem District. The Hanoi Land Registration Office updates the land use rights registration, performs the procedures for registering changes, and adjusts land changes into the cadastral records according to regulations.

The Department of Finance guides the refund of the land clearance and infrastructure investment amount allocated at the land lot coded F2-NT1 to the investor of the Tay Mo - Dai Mo - Vinhomes Park New Urban Area Project (if any) according to regulations.

The Departments of Construction, Planning - Architecture, Planning and Investment, Education and Training guide the People's Committee of Nam Tu Liem district to implement specialized management contents according to regulations.

Source: https://baoquocte.vn/bat-dong-san-moi-nhat-mac-ke-ton-kho-ngay-cang-lon-gia-van-tang-vu-vu-thi-truong-vao-mua-cuoi-nam-bang-gia-14-chung-cua-vua-mo-ban-293091.html