DNVN - According to Savills's Q1/2024 Asia-Pacific Investment Report, the real estate price index in the first quarter of 2024, the housing segment in Hanoi and Ho Chi Minh City, took place in two opposite extremes.
In Hanoi, the residential index rose 8 percentage points quarter-on-quarter to 142.5, up 37% since bottoming out at 104.1 in the third quarter of 2019, according to Savills Asia Pacific Q1/2024 Investment Report. The average house price was VND44 million per square metre of built-up area (NSA), up 8% quarter-on-quarter.
Hanoi is prioritizing infrastructure development, creating immediate real estate demand and a foundation for sustainable growth. Key projects will be the driving force for affordable housing projects.
In Q1/2024, the absorption rate reached 41%, up 15 percentage points quarter-on-quarter and 27 percentage points year-on-year. Confidence and stability are returning to the real estate market amid low bank deposit interest rates and new comprehensive regulatory reforms, including the Real Estate and Housing Business Laws as well as supportive fiscal measures from the Government.
Regarding the office index, in Hanoi, the index recorded 69 points, stable on a quarterly and annual basis. The occupancy rate of Grade A was 88%, up 3 percentage points compared to Q4/2023 and 8 percentage points compared to the same period last year. The occupancy rate of Grade B was 85%, stable on a quarterly basis and down 1 percentage point year-on-year. Meanwhile, the Grade C segment had an occupancy rate of 91%, down 1 percentage point both quarterly and year-on-year.
In Ho Chi Minh City, the housing index fell 2 percentage points from the previous quarter to 123 points after many projects were suspended. Primary selling prices also fell 3% from the previous quarter to VND67 million/m2.
Amid slowing sales and weak homebuyer confidence, developers are showing caution by maintaining stable selling prices and increasing discounts. Some investors have paused projects to adjust sales policies.
The absorption rate decreased by 18 percentage points compared to the previous quarter to 23%. However, new supply achieved an absorption rate of 70% while inventory only achieved an absorption rate of 16%.
In Ho Chi Minh City, the office index increased by 1 percentage point quarter-on-quarter and 2 percentage points year-on-year to 98. The index in the central business district (CBD) increased by 1 percentage point quarter-on-quarter but decreased by 1 percentage point year-on-year to 107.
Occupancy decreased 1 percentage point QoQ and 4 percentage points YoY to 90% due to the new project The Nexus with a low occupancy rate of 55%. Rents increased 3% QoQ and 7% YoY to VND1 million/m2/month.
Also in Ho Chi Minh City, the non-CBD index was stable compared to the previous quarter and increased by 6 percentage points compared to the same period last year to 114 points. Office rents improved across all 15 districts, up 1% compared to the previous quarter and 11% compared to the same period last year to VND595,000/m2/month. The occupancy rate reached 89%, up 1 percentage point compared to the previous quarter but down 1 percentage point compared to the same period last year.
The first quarter real estate price index shows that the housing segment in Hanoi and Ho Chi Minh City is moving in two opposite extremes.
Hoai Anh
Source: https://doanhnghiepvn.vn/kinh-te/bat-dong-san/phan-khuc-nha-o-tai-ha-noi-va-tp-ho-chi-minh-theo-2-thai-cuc-doi-lap/20240624021031835
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