The real estate market in 2024 recorded positive developments with the "leading wave" of real estate in the North, with the focus being the Hanoi market. Meanwhile, real estate in the South and Ho Chi Minh City was quiet, with prices in some segments not fluctuating much, and some segments decreasing slightly.
In a general assessment of the Vietnamese real estate market in 2024, Mr. Dinh Minh Tuan - Business Director of PropertyGuru Vietnam - commented that the Vietnamese real estate market in 2024 is clearly differentiated between segments and can be divided into three pictures: North - South, high-rise - low-rise and center - suburbs.
In particular, regarding the differentiation between the North and the South with two major cities Hanoi and Ho Chi Minh City, the average real estate selling price in Hanoi has increased significantly in most segments.
In November 2024, the selling price of apartments in Hanoi reached 61 million VND/m2, surpassing that of Ho Chi Minh City (55 million VND/m2), up 58% compared to January 2023; the price of private houses was 197 million VND/m2, up 52% compared to January 2023 and twice that of the Ho Chi Minh City market. Meanwhile, the average selling price of private houses in Ho Chi Minh City was 108 million VND/m2, down 10% compared to January 2023.
Mr. Dinh Minh Tuan assessed that this is "a very terrible number", the increase in housing prices in Hanoi and the difference in selling prices between the two largest cities are at an astonishing level.
Regarding the land segment, the expert commented that the Hanoi land market will be stable in 2023 and will start to become active from the beginning of this year, typically the recent suburban land auctions. The level of interest recorded up to now has increased by 75%. The average selling price of land in Hanoi in November 2024 is 70 million VND/m2 and in Ho Chi Minh City is 57 million VND/m2. Although the new supply is mostly at a high price level, the absorption rate in Hanoi is still quite positive.
While Hanoi real estate prices increased in most segments, Ho Chi Minh City recorded the opposite trend, the Ho Chi Minh City real estate market throughout 2023 almost did not grow in any type. This year, apartments began to increase in price again, followed by the private house segment.
According to PropertyGuru Vietnam experts, by the end of November this year, compared to January 2023, except for apartment prices which increased by 17%, the remaining segments increased slightly or even decreased. Of which, land increased by 3%, townhouses decreased by 2%, villas decreased by 3%, and private houses decreased by 8%. The expert commented that when the Southern market has not increased in price, real estate investment opportunities in the near future will focus on this area.
“After a period of hot price growth for nearly a decade and always being at least 30% higher than the Hanoi market, by May 2024, Ho Chi Minh City unexpectedly fell behind Hanoi with a difference of 20%. It is likely that Hanoi apartment prices will remain the same or increase slightly in 2025, while Ho Chi Minh City apartment prices will have the opportunity to continue to increase,” Mr. Tuan predicted.
