Apartment prices continue to climb
According to the regular report of the Ministry of Construction, survey and synthesis of reports from several large provinces and cities such as Hanoi and Ho Chi Minh City, apartment prices increased by an average of 5-6.5% in the second quarter and 25% annually depending on the area.
In Hanoi alone, Savills' Q3/2024 real estate market report shows that apartment prices continue to climb in both new and old projects. Accordingly, the price level of new projects has increased by 6% quarter-on-quarter and 28% year-on-year, reaching VND69 million/m2. The high increase in primary projects has also pushed the selling price of old apartments to VND51 million/m2, up 10% quarter-on-quarter and 41% year-on-year.
For example, at the Diamond Goldmark City project (Phu Dien, Bac Tu Liem) in September 2024, the average selling price was about 66.1 million VND/m2. Meanwhile, in January 2024, the average selling price at this project was only about 50.3 million VND/m2.
In Cau Giay, The Nine Apartment project as of September 2024 has a price range of about 72.8-91.6 million VND/m2. Meanwhile, in January 2024, the selling price of apartments in this project only fluctuates around 58.6-77.4 million VND/m2.
At the Mipec Rubik 360 project (Dich Vong Hau, Cau Giay), as of September 2024, the price ranges from 70.9 - 93.6 million VND/m2. Meanwhile, in January 2024, the selling price of apartments in this project only fluctuates from 63.5 - 79.3 million VND/m2.
Even in old apartment projects that have been in use for many years and are gradually deteriorating, prices are still high. For example, the Nam Trung Yen resettlement project (Cau Giay, Hanoi) is being advertised for sale at over 70 million VND/m2.
Imbalance of supply and demand, people struggle to buy houses
According to the third quarter 2024 report of the Vietnam Association of Realtors (VARS), housing prices in Hanoi continue to remain high, in both the primary and secondary markets, especially in the apartment segment.
The supply-demand imbalance is becoming more and more serious as supply, although improved, is still struggling to meet demand. This has left home buyers with fewer and fewer options due to the scarcity of apartments and rising prices.
Ms. Nguyen Minh Hien (Ho Tung Mau, Cau Giay) said that if you work in an office with a basic monthly salary of over 10 million VND, it would be extremely difficult to buy an apartment in Hanoi without support from relatives. Ms. Hien shared that with 1-2 billion VND, it is not certain that you can buy an apartment in Hanoi, but if you return to your hometown, you can at least buy land to build a small house.
According to Savills statistics, in the first 9 months of 2024, 70% of apartments were traded for over 4 billion VND, a sharp increase from 2% in 2020. The segment from 2 to 4 billion VND accounted for 29%. Only 1% of apartments were traded for under 2 billion VND.
This shows a serious imbalance in the product structure of the apartment segment. After a period of continuous price increases, apartments priced above VND4 billion have become a common purchase price in Hanoi. With VND2-3 billion, people still struggle to find a place to live.
