A recent market report conducted by the Institute of Construction Economics (Ministry of Construction) shows that in 2024, after a period of rapid growth, old apartments transferred in Hanoi have established a new price level with 37% of products priced over 5 billion VND/unit, more than 19% of the market share belongs to the segment of 1.5 - 3 billion VND/unit, apartments under 1.5 billion VND/unit account for less than 3% and are tending to disappear from the market.
According to the Ministry of Construction, the increase in prices of old apartments is mainly due to "following" the wave of new high-priced supply. Most projects opened for sale in Hanoi in 2023 are priced above VND50 million/m2. The fact that investors prioritize the high-end segment has made the housing product structure increasingly unbalanced.
Data from the Vietnam Association of Realtors (VARS) shows that in recent times, the housing market has had many shortcomings as it has increasingly shifted to the high-end segment.
Accordingly, in 2024, the entire Hanoi market recorded nearly 10,000 apartment products launched with prices above 80 million VND/m2. This number is 3 times higher than in 2023, showing that the supply of the high-end segment is overwhelming.
In some suburban areas of Hanoi, apartment prices have also increased to 70 - 90 million VND/m2, competing with inner-city projects.
In the Southern market, Mr. David Jackson - General Director of Avison Young Vietnam Company - said that apartment prices in Ho Chi Minh City are currently around 75 - 120 million VND/m2.
Ho Chi Minh City market has run out of apartments priced under 40 million VND/m2, with only a few projects priced at around 50 - 55 million VND/m2 (accounting for about 10-15%).
It is expected that the supply of apartments in Hanoi will increase in 2025. However, finding apartments in the mid-range segment, with prices under 60 million VND/m2, is still a big challenge for people who want to buy a house.
Mr. Nguyen Van Dinh - Chairman of the Vietnam Association of Real Estate Brokers (Vars) - commented that if the trend of increasing real estate prices is not controlled soon, the market and society may face many consequences.
Therefore, Mr. Dinh also recommended that management agencies study plans to support site clearance for projects in the affordable segment to increase supply at suitable prices.
Many real estate experts say that rising housing prices not only put great pressure on buyers but also undermine the sustainability of the market.
To cool down housing prices, experts recommend promoting the development of social housing, removing legal obstacles to increase supply, and issuing financial support policies to help home buyers access preferential loans, thereby reducing financial pressure.
