After a period of strong price increases, apartment prices are at a fairly high level. Most of the new projects launched on the market today are in the mid- to high-end segment. The market lacks diversity, the supply of new projects is mainly concentrated in a few projects and belongs to large investors.
According to a survey by Lao Dong Newspaper reporters, most of the newly opened supply is in the high-end and luxury segments, lacking products in the mid-range and affordable segments.
In Hanoi, newly opened commercial housing for sale at prices below 35 million VND/m2 no longer appears, the market no longer has primary products in this segment. Even higher prices, averaging from 38-45 million VND/m2, only appear in one project, Grand Sunlake at 135 Tran Phu, Ha Dong District. The average price of primary products in Hanoi is currently quite high, around 60-120 million VND/m2.
It can be seen that the imbalance between supply and demand is a major concern when the supply is mainly focused on the high-end housing segment, while affordable apartments suitable for the majority of people's income are almost non-existent. This not only causes a shortage of affordable housing, but also pushes real estate prices up, beyond the affordability of many people, especially middle- and low-income workers.
Therefore, housing prices and the issue of housing for middle-income and low-income earners are becoming hot issues. Many people expect that housing prices, especially apartment prices, will decrease in the near future, and the market will have more supply of affordable and mid-range housing.
However, according to experts' forecasts, in the near future, apartment prices will hardly decrease.
Mr. Le Dinh Chung - General Director of SGO Homes said that the high housing prices are partly due to large investors monopolizing the supply, leading to price. In addition, high investment costs, high demand while scarce supply makes investors have higher expectations for profits, which is also the reason for pushing prices up abnormally.
The General Director of SGO Homes predicts that Hanoi apartment prices will continue to increase in the short term, at least from now until mid-2025. In the long term, with the Government's solutions such as developing social housing and removing legal obstacles, real estate prices will be controlled and kept stable. However, these solutions are only aimed at avoiding price escalation, and it is impossible for apartment prices to decrease sharply.
Sharing the same view, Mr. Nguyen Quoc Anh - Deputy General Director of PropertyGuru Vietnam also said: "When apartment prices have not increased much, people tend to wait for price reduction. But when prices increase by 10 - 20%, they rush to buy because they are afraid that prices will continue to increase. This is a psychological blow that causes apartment prices to increase again."
According to Mr. Quoc Anh, the price level of apartments in the coming time is very difficult to decrease. However, the expert predicts that the market next year will be flat, not as hot as it is now. "Any market after a period of overheated development will at least be flat, it cannot increase forever" - Mr. Quoc Anh commented.
