The real estate market is completely devoid of affordable apartments.

The real estate market is led by the apartment segment.

According to the Real Estate Market Report for the third quarter and the first 9 months of 2024 published by the Vietnam Association of Real Estate Brokers (VARS), VARS assessed that the Vietnamese real estate market in the third quarter in particular and the first 9 months of 2024 in general showed a positive recovery after a difficult period, thanks to the stability of the economy and the Government's support policies.

Ms. Pham Thi Mien - Deputy Director of VARS said that the residential real estate market has begun to show signs of "heating up".

Accordingly, the land auction story is "hotter" than ever with auctions held overnight, recording hundreds, even thousands of people accepting to eat and sleep in order to compete for a spot. The winning price is also a record high, equal to project land with well-invested infrastructure.

The heat of the market is also led by the apartment segment, with prices continuously setting new high levels, in both the primary and secondary markets.

Along with the apartment type, some newly launched low-rise projects of major investors also recorded a record number of bookings despite increasingly high prices.

Ms. Pham Thi Mien - Deputy Director of VARS said that the residential real estate market has begun to show signs of "heating up".

However, besides the results from actual supply and demand, the market has also shown signs of "heating up".

This situation is reflected in land speculation, pushing up housing prices, and the emergence of non-transparent real estate transactions. Many small investors participate in the market for the purpose of speculation, causing real estate prices to be pushed up unreasonably.

Signs of "heating up" are also shown in the apartment segment with the price level of transferred apartments increasingly high, due to the support of some speculative groups.

These signs all stem from a lack of supply, although it has improved.

Overwhelming apartment transaction volume

VARS's market report shows that in the third quarter of 2024, the residential real estate market continued to record a supply of 22,412 products offered on the market, with about 14,750 newly launched products, down 25% compared to the previous quarter, but up 60% compared to the same period in 2023.

Despite a statistical decrease in quantity, the supply in the third quarter of 2024 still showed growth when a number of new projects appeared, making the market more exciting.

In the first 9 months of 2024, the market recorded 38,797 new products offered for sale. Supply still recorded strong differentiation.

Accordingly, 70% of the new supply comes from the apartment segment. Of which, products with selling prices of 50 million VND/m2 or more account for the overwhelming majority.

The market is almost completely devoid of affordable commercial apartments. In terms of region, the North leads the new supply with 46%, followed by the Central region with 29% and the South with 25%.

The market is almost completely devoid of affordable commercial apartments.

VARS research data also shows that, 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 2024, equivalent to an absorption rate of 51%.

Transaction volume and absorption rates decreased by 25% and one percentage point respectively compared to the previous quarter but increased by 80% and 28 percentage points respectively compared to the same period in 2023.

Of which, the volume of apartment transactions is still overwhelming, accounting for 71% of total housing transactions in the third quarter of 2024, with new apartment projects recording an average absorption rate of 75%.

Even apartment projects in Hanoi recorded absorption rates of up to 90% shortly after opening for sale.

In the first 9 months of 2024, the market recorded 30,589 successful transactions, 2.5 times higher than the same period in 2023. Many new projects launched at the end of September, starting to receive bookings, also recorded a large amount of interest and deposits.

Projects in Hanoi approaching price of 60 million VND/m2

In terms of selling prices, housing prices continue to remain high in both the primary and secondary markets, especially in the apartment segment. The imbalance between supply and demand is becoming increasingly serious as supply, although improved, is still difficult to meet demand.

In addition, most new supply continues to be completed to a high standard with investment costs, especially land-related costs, increasing.

Specifically, in the third quarter of 2024, the primary price level in Hanoi continued to increase and showed no signs of stopping, while supply has been gradually improving.

New projects, from low-rise to high-rise products, mainly in the high-end and luxury segments, still receive strong attention from the market.

This has created a driving force for secondary apartment prices to remain high, although liquidity has gradually stabilized after a period of "hot" growth.

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 market is still well absorbed thanks to investment demand from out-of-province buyers, especially investors from Hanoi.

In addition, secondary prices also improved across the board, with residential land prices in some areas increasing by 10-25% over the same period.

Apartments and houses under 3 billion VND are being "hunted" strongly in Hanoi and Ho Chi Minh City.

For Ho Chi Minh City , the primary price level remains stable at a high level due to the supply mainly coming from ongoing projects. Meanwhile, the primary price level in the provinces and cities surrounding Ho Chi Minh City increased slightly, ranging from 3-5%, with new supply having higher selling prices.

Research on apartment price index, reflecting the average selling price fluctuations of projects in the sample set of 150 projects selected and observed by VARS, also shows that, as of the third quarter of 2024, the average selling price of the sample project cluster in Hanoi is close to 60 million VND/m2, an increase of 64.0% compared to the second quarter of 2019.

The average selling price of the project cluster in Ho Chi Minh City increased from VND49.2 million/m2 to VND64.2 million/m2, reflecting an increase of 30.6% compared to the base period. In Da Nang, the Da Nang market price index showed an increase of 46.2% in the third quarter of 2024, higher than the increase in Ho Chi Minh City.

Demand for real estate, including housing and investment needs, continues to shift to suburban areas, provinces/cities surrounding the two special urban areas and the secondary market with many options at more reasonable prices. Apartments and houses under 3 billion VND are being "hunted" strongly in Hanoi and Ho Chi Minh City .

Source: https://www.nguoiduatin.vn/thi-truong-bds-vang-bong-hoan-toan-can-ho-chung-cu-gia-binh-dan-204241014145959475.htm