The supply of newly launched apartments in Ho Chi Minh City in 2024 will only reach 5,050 units, the lowest in the 2013-2024 period.
Overview of Vietnam real estate market discussion 2024 - Photo: B.NGOC
The above comment was made by Mr. Vo Huynh Tuan Kiet, head of housing project marketing department of CBRE Vietnam, at the Vietnam Real Estate Market Overview Conference in the fourth quarter of 2024, held on January 8 in Hanoi.
Average apartment price from 72-76 million VND/m2
According to Mr. Kiet, 2024 will be the year of "terrible" apartment price increases, especially in the Hanoi market.
CBRE Vietnam's 2024 Real Estate Market Overview Report also noted contrasting trends between the two key housing markets.
While the Ho Chi Minh City market has a limited supply of newly launched housing, reaching nearly 5,300 products (apartments, townhouses, villas), the new supply of the housing market in Hanoi increased sharply, reaching nearly 38,000 newly launched products.
Considering the apartment market alone, in 2024, the supply of newly launched apartments in Hanoi increased 3 times compared to 2023, reaching more than 30,900 apartments, the highest since 2020.
In Ho Chi Minh City, the supply of newly opened apartments reached 5,050 units, the lowest in the period 2013 - 2024.
However, in the last quarter of the year, the supply of apartments in Ho Chi Minh City improved, increasing sharply compared to the previous 3 quarters.
The selling price of newly opened apartments in Hanoi in the fourth quarter of 2024 is 72 million VND/ m2 (excluding VAT and apartment maintenance fees).
Primary selling prices of apartments in Hanoi in 2024 increased by 36% year-on-year and 12% quarter-on-quarter.
This is the highest increase recorded in the past 8 years in Hanoi.
The Hanoi apartment market continues to have a supply-demand imbalance, with most of the new supply in the fourth quarter focusing on high-end projects with full legal status, developed in large urban areas in Nam Tu Liem and Gia Lam districts.
Another noteworthy point with the Hanoi apartment market is that areas far from the center such as Dong Anh, Van Giang (Hung Yen province bordering Hanoi) are increasing the supply of high-end apartments in large urban areas.
In addition to high-end supplies, the Hanoi market in the fourth quarter also recorded a new mid-range project in the suburbs of Hanoi (Thach That district) that opened for sale with a positive sales rate.
For the apartment market in Ho Chi Minh City, the primary selling price recorded in the fourth quarter reached an average of 76 million VND/ m2 (excluding VAT and apartment maintenance fees), an increase of nearly 24% over the same period last year.
70% of new apartment supply in Ho Chi Minh City in 2024 will be concentrated in high-end and luxury projects. Projects opening for sale in the next phase have adjusted their selling prices to increase by 10-40% compared to the previous phase.
Typically, there is a project in the Thu Thiem area offering the final phase with apartment prices up to 490 million VND/ m2 . Despite setting a high primary selling price, investors also apply many preferential sales policies such as payment extension up to 5 years, discounts from 5 - 16% of the selling price.
Therefore, the absorption rate of apartments in newly opened projects in Ho Chi Minh City reached an average of 70% of the total number of apartments opened for sale.
Among them, some high-end, luxury projects with convenient connections to the central area recorded a sales rate of nearly 100% on the opening day, attracting the majority of investors with available cash flow and choosing standard payment policies with high discounts.
Apartment prices in Hanoi and Ho Chi Minh City will both increase sharply in 2024 - Photo: NAM TRAN
The market will be more stable in 2025
According to the survey results of CBRE Vietnam, in the secondary market (used apartments, bought and sold), the average selling price in Hanoi and Ho Chi Minh City reached 48 million VND/ m2 and 49 million VND/ m2 respectively (excluding VAT and apartment maintenance fees).
In Hanoi, compared to the same period last year, secondary selling prices increased by more than 26%, while in Ho Chi Minh City they increased by 7%.
CBRE Vietnam forecasts that in 2025, the supply of new apartments in Hanoi will continue to be abundant, with an estimated 31,000 new apartments for sale. However, the supply will mainly be concentrated in the high-end and luxury segments.
Commenting on the housing market in Hanoi and Ho Chi Minh City next year, Ms. Duong Thuy Dung, CEO of CBRE Vietnam, said: "2025 will mark the beginning of a new cycle of the housing market, with abundant supply and improved product quality.
The market is expected to develop more stably and sustainably when it has time to adapt to the revised laws along with new decrees and circulars guiding their implementation. This will create a clear legal environment, encourage investors to participate in project development, and open up opportunities for easier access to housing for people."
Source: https://tuoitre.vn/nguon-cung-can-ho-tp-hcm-cham-day-12-nam-gia-ban-tiep-tuc-tang-20250108115552798.htm
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