Hanoi apartment prices are sky-high but the price increase has not stopped, the State's regulation is needed - Photo: NAM TRAN
The rise in apartment prices has not stopped
A recent survey by VARS of 150 real estate projects nationwide recorded that at the end of the third quarter of 2024, the average selling price of apartments in Hanoi approached 60 million VND/ m2 , an increase of 64% compared to the second quarter of 2019.
In the same period in Ho Chi Minh City, the average selling price of apartments was about 64.2 million VND/ m2 , an increase of 30.6%.
In Da Nang, the average selling price of apartments also increased by about 46.2%.
The information was provided by VARS in the Vietnam real estate market report for the third quarter of 2024 with the topic "Heating up or creating heat" just released.
VARS believes that the demand for real estate (including residential and investment needs) is shifting to the suburbs, provinces and cities around the two special urban areas of Hanoi and Ho Chi Minh City. Apartments and real estate under 3 billion VND are being "hunted" a lot.
Ms. Pham Thi Mien, Deputy Director of the Vietnam Real Estate Market Research and Assessment Institute (VARS), commented that the real estate market in the third quarter continued to show signs of heating up. The total supply of real estate in the third quarter nationwide reached 22,412 products, of which about 14,750 products were newly launched, an increase of 60% over the same period in 2023.
In the first 9 months of 2024, the market recorded 38,797 new products offered for sale.
Although the supply is mainly in the high-end and luxury segments, the whole market recorded about 10,400 successful transactions in the third quarter of this year, with an absorption rate of 51% of the total new supply.
Apartment transactions accounted for 71% of the total successful real estate transactions in the third quarter, with newly opened apartment projects recording an average absorption rate of 75%. Some newly opened apartment projects in Hanoi recorded absorption rates of up to 90% shortly after opening for sale.
"This reflects the market's interest in new real estate products, although most of the new supply is completed to high standards and investment costs, especially land-related costs, are increasing," Ms. Mien commented.
The imbalance of supply and demand is increasingly serious.
The imbalance between real estate supply and demand across the country, according to VARS, is becoming increasingly serious. Supply has improved but it is still difficult to meet demand.
In the third quarter of 2024, the primary price level in Hanoi continued to increase and showed no signs of stopping. New projects from low-rise to high-rise products, mainly in the high-end and luxury segments, still received strong attention from the market.
Meanwhile, in Da Nang, the primary price level of apartments also recorded a record increase, with more than 50% of new supply priced at over VND80 million/ m2 . However, the Da Nang market still has a good absorption rate thanks to investment demand from buyers outside the province, especially investors from Hanoi.
For Ho Chi Minh City, the primary price level remains stable at a high level due to supply mainly coming from ongoing projects.
According to Ms. Mien, in addition to the imbalance between supply and demand, the real estate market has shown signs of "heating up". This situation is reflected in land speculation, pushing up housing prices and creating non-transparent real estate transactions.
Many small investors enter the market for speculative purposes, causing real estate prices to rise unreasonably. Signs of "heating up" are also evident in the apartment segment with increasingly high asking prices, due to the "assistance" of some speculative groups.
Sharing the same view, Ms. Do Thi Thu Hang - Senior Director, Research and Consulting Department, Savills Hanoi - said that housing prices in Hanoi are still on the rise. The primary selling price is currently at VND69 million/ m2 , up 6% compared to the previous quarter and 28% compared to the same period last year.
According to Ms. Hang, although the market is growing, the gap between household income and housing prices is becoming increasingly obvious. With an average household income in Hanoi of about 250 million VND/year, and an average apartment price of 4 billion VND, people need to save up to 18 years without spending to be able to buy a house.
"Average income only grows 6% per year, housing prices on the secondary market have increased by an average of 17-20%, causing many difficulties in buying a house," said Ms. Hang.
Source: https://tuoitre.vn/tang-gia-nha-dat-de-xuat-nha-nuoc-co-giai-phap-can-thiep-20241014154543084.htm
Comment (0)