Apartments are the "darling" product of the real estate market.
Despite many difficulties, the Vietnamese economy has passed the first 6 months of 2024 with outstanding growth results, creating a foundation to strive to achieve and exceed the growth target for the whole year 2024. Accordingly, the growth of gross domestic product (GDP) in the second quarter of 2024 is estimated at 6.93% and the first 6 months is estimated at 6.42%, exceeding the upper limit of the scenario set out in Resolution 01/NQ-CP.
On the basis of stable economic growth, the real estate market in the second quarter of 2024 continued to record positive signals with new supply and transaction volume increasing sharply, 3 times and 2.4 times respectively compared to the previous quarter.
The supply of luxury apartments is overwhelming, investors prioritize 'people with money'. (Photo: SMH)
Specifically, research data from the Vietnam Association of Realtors (VARS) shows that in the second quarter of 2024, the primary housing supply reached about 27,335 products, of which about 19,747 were newly offered products. Also in the second quarter, the entire market recorded more than 14,400 successful transactions.
Transaction volume increased sharply due to improved quality of apartment supply and demand.
According to VARs, demand, including investment demand and real demand, is estimated to increase by about 30% compared to the previous quarter.
This proves that market confidence is being strengthened. In addition, interest rates are remaining stable at low levels, primary prices are unlikely to fall sharply, investors are aggressively implementing attractive incentive programs, etc., which also create momentum for the market.
Up to now, apartments are still the main segment, leading market liquidity. Specifically, more than 70% of supply and 75% of transactions in the primary real estate market in the second quarter were contributed by the apartment segment.
Newly launched apartment projects, most of which are priced above VND50 million/m2, concentrated in Hanoi, have recorded very good absorption rates, up to 90% after a short time of official launch. Although the average primary price has continued to increase.
Apartment prices in Hanoi increase "skyrocketing"
Although the supply of apartments tends to increase, the selling price is still increasing, especially in Hanoi. Specifically, from mid-late 2023, the growth in selling prices of the Hanoi apartment market has begun to increase and surpass the price increase of the Ho Chi Minh City market.
As of the second quarter of 2024, the average selling price of primary apartments in Hanoi is approaching 60 million VND/m2. Compared to the base period (second quarter of 2019), the selling price of primary apartments in Hanoi recorded a remarkable increase of 58%, more than double the growth rate of the Ho Chi Minh City market with an increase of 27%.
The apartment price index in Da Nang has also begun to "accelerate" with the price increase rate in the second quarter of 2024 surpassing that of Ho Chi Minh City, although the average apartment price here is still lower than the two special cities.
VARS believes that primary apartment prices are still unlikely to decrease, especially when the supply of luxury apartments is overwhelming, construction costs are increasing, and space and amenities are increasingly invested in quality.
Land funds for commercial housing development in the city center and the suburbs will continue to be developed by investors into apartment segments, serving the investment needs and real housing needs of "the rich".
To own a house, low- and middle-income individuals will continue to have to "rely" on social housing, which will not be available much within a radius of less than 30km from the central area.
Source: https://www.congluan.vn/nguon-cung-can-ho-cao-cap-ap-dao-chu-dau-tu-uu-tien-nguoi-co-tien-post304241.html
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