The apartment segment faces the challenge of limited supply
In the first half of 2024, the housing segments continue to be the hot spot of the real estate market. The apartment segment recorded a sudden increase in interest, leading to a sharp increase in product prices on the secondary market.
Talking to Lao Dong, Ms. Do Thi Thu Hang, Senior Director, Consulting and Research Department, Savills Hanoi said: "In comparison with the same period last year, apartment prices on the secondary market The average grade increased by 25%, even the Grade B and Grade C segments recorded an increase of 27% to 29%.
Savills Vietnam's second quarter 2024 report also shows that, since 2020, the average primary price increased by 18% per year, while secondary prices increased by 14% per year. By mid-2024, the primary price of the apartment segment will reach 65 million VND/m², up 10% quarter-on-quarter and 24% year-on-year. In particular, Savills recorded no new supply of less than 45 million VND in the second quarter of 2024.
Limited supply and product imbalance are said to be the main reasons leading to the continuous sharp increase in selling prices of the apartment segment. In the second quarter of 2024, new supply decreased by 34% quarter-on-quarter and 25% year-on-year, with 2,697 units. Primary supply with 10,317 units, down 20% quarter-on-quarter and 49% year-on-year.
The majority of apartment purchases recorded in the first 6 months of the year belonged to the Grade B apartment segment. Grade B accounted for 96% of the total 5,085 units sold. This segment provides quality services that meet daily living needs, helping buyers balance the cost of buying a home and quality of life.
Prospects of the housing market in the near future
According to Ms. Do Thi Thu Hang, Hanoi's housing market is expected to enter a new phase because the Land Law, Housing Law and Real Estate Business Law officially took effect early on August 1.
“When the law takes effect soon, many market problems will be resolved and the impacts will happen faster. For example, there is the problem of limited supply in many localities. When supply is limited, people's choices decrease, leading to unstable and increasing prices. Solving the problem of limited supply will be a positive impact for the overall market.
However, it should be noted that even though the law takes effect soon, it will still take time to resolve the problem of limited supply because currently projects are still waiting for guiding documents," Ms. Hang said.
Currently, prices of housing segments are at high levels, greatly affecting investment decisions and market liquidity. When guiding documents are gradually fully issued, prices are forecast to become more stable and people's benefits will be more assured, for example, conditions and regulations for the sale of visual products. become in the future.
Typically, the Real Estate Business Law also stipulates that investors are only allowed to collect a deposit of no more than 5% of the real estate value, in addition, they are only allowed to collect deposits in cases where houses and construction works have been completed. has all the conditions for putting into business according to the provisions of the Real Estate Business Law 2023.
This helps protect buyers from the risk of capital being misappropriated before completing the necessary legal procedures, giving buyers more time to prepare financially. At the same time, this regulation contributes to creating more confidence in market transactions.
Besides, in the coming time, with the limited land fund, projects and supply in the center, the trend of moving to suburban areas will continue to be strong.
For apartments, demand mainly comes from the middle-income group. The affordability of this group is products under 3 billion VND, while the Hanoi market does not have many choices for this price range. Therefore, buyers have considered projects located on the outskirts of the city such as Nam Tu Liem, Ha Dong and Gia Lam, which provide up to 93% of the supply of this segment.
