Real estate market data for the third quarter of 2024 from Batdongsan.com.vn shows that the Hanoi apartment market recorded a continued upward trend in selling prices.
Mr. Nguyen Quoc Anh - Deputy General Director of Batdongsan.com.vn pointed out a paradox that the high price of apartments is due to the scarcity of supply. However, in recent times, although the supply has improved, the price continues to increase.
The reason is that new supply has improved but the asking price is high and this price is still absorbed by the market.
In fact, the projects launched in Hanoi recently have established a new price level. The average price of an apartment in the Lumi Hanoi project is 79 million VND/m2, Lumiere Evergreen is 90 million VND/m2, Imperia Solar Park is 65 million VND/m2, QMS Tower is 80 million VND/m2.
Real estate prices are forecast to remain high as high-priced products are still being absorbed and real demand is very high. In the future, real estate will maintain its position as an attractive investment channel.
According to data from the OneHousing Center for Market Research and Customer Insights, in August 2024, the Hanoi apartment market recorded about 3,100 transfer transactions. Although this number decreased slightly by 3% compared to July, it increased sharply by 25% compared to the period of May and June.
Ms. Ho Thi Thu Mai, Director of Nha Ho Ngay Viet Nam, said that the price of transferred apartments in Hanoi has grown dramatically since August 2023, before remaining at a "stabilized" high price level in the past few months.
Some apartments previously priced at around VND3 billion in mid-2023 have now risen to over VND5.5 billion in just a short period of time. This is an incredible increase, showing the unprecedented heat of the apartment market in the capital.
The escalation in apartment prices reflects two key factors including the scarcity of supply and increasing demand from buyers.
"New projects launched on the market are almost all in the high-end segment, with primary prices constantly increasing, which further increases the prices of transferred apartments," Ms. Mai shared.
Besides, Ms. Ho Thi Thu Mai said that the Hanoi real estate market, especially within the Ring Road 3, is experiencing a serious shortage of apartment supply.
Two-bedroom apartments priced under VND4 billion have become extremely rare, not only in the central area but also in the outlying districts, where prices have increased sharply. Many projects in the suburbs, far from the center, which were previously in the mid-range segment, are now being pushed up to the high-end segment.
The Director of Vietnam Housing Now warned that without drastic measures from the State and businesses to increase supply, especially in the social housing and low-cost housing segments, the market will face serious consequences.
People with real housing needs will have difficulty owning a home, and the "price fever" can lead to instability for the entire real estate market.
