Apartment prices reach nearly 500 million VND/m2
According to the report on the real estate market in Ho Chi Minh City and surrounding areas in the third quarter of 2024 by DKRA, the primary supply of the apartment segment in the whole market recorded 13,408 units, down 17% over the same period, with projects concentrated in the two markets of Ho Chi Minh City accounting for 57% and Binh Duong 38%.
Consumption of 2,671 units, down 39% over the same period, largely due to the lack of new projects opening for sale as well as the influence of buyers' waiting psychology.
Transactions are concentrated in mid-range projects with prices ranging from 40-55 million VND/m2 in Ho Chi Minh City, from 30-35 million VND/m2 in Binh Duong, mostly in projects with completed legal procedures and rapid construction progress. Notably, the highest primary selling price of apartments in Ho Chi Minh City is up to 493 million VND/m2, while the highest in Binh Duong is only 60 million VND.
DKRA Group said that primary selling prices remained high under the pressure of project development input costs, while demand was stimulated by many policies of quick payment discounts, principal and interest grace periods, etc. Secondary selling prices increased by 5-9% over the same period, focusing on projects that have handed over houses, have certificates, and are conveniently located to the center.
With many projects in the communication phase preparing for sale, DKRA forecasts that new supply in the fourth quarter will increase compared to the third quarter of 2024, fluctuating around 4,000-6,000 units, mainly concentrated in Ho Chi Minh City and Binh Duong. The class A apartment segment continues to hold a dominant position in Ho Chi Minh City, while the class B and C segments lead the new supply in the market of neighboring provinces.
Regarding the primary selling price of townhouses and villas in Ho Chi Minh City, the highest is up to 700 billion VND/unit, the lowest is 5.3 billion VND, while in Dong Nai the highest is 228.5 billion VND, the lowest is 2.2 billion VND.
New land price list will cause prices to increase sharply
According to observations of the real estate market, after the new land price list was issued and officially applied by Ho Chi Minh City, the price level of residential land and land with certificates has increased.
According to some experts, the new land price list will increase sharply in the short term, causing mixed psychological impacts, both positive and negative.
In the context of increasingly narrowing land funds, in the coming time, investors who buy new land funds must conduct compensation for site clearance, the land price will increase and this cost will be included in the selling price, thereby increasing the cost of products.
Dr. Nguyen Duy Phuong, Investment Director of DG Capital, believes that the market does not have to wait until the new land price list is issued for prices to increase, but the story of real estate product prices has been continuously increasing over the past time, even when the market is facing liquidity difficulties.
The demand for housing is increasing, but it is very difficult to carry out projects at this time, partly because it is difficult to find land to develop the project, partly because the time to complete legal procedures for the project is prolonged, while input costs such as construction materials, labor costs, interest costs, land prices, etc. are all increasing. However, with the new land price list issued according to market prices, investment costs will become more and more expensive. Therefore, it is difficult to expect real estate prices to decrease, but only increase.
According to Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, the adjusted land price list has not yet had an immediate impact on the real estate market because current projects are mainly priced using the surplus method. However, the new land price will impact the market in “phase 2”, when real estate enterprises receive land use rights transfers to implement projects and at this time, people want to sell land at higher prices than before, leading to pressure on house prices to increase.
"Therefore, the State needs to have effective measures to control the activities of speculators and land brokers... to avoid taking advantage of the new land price list to "inflate prices", disrupting the market for the purpose of illegal profiteering", Mr. Chau stated his opinion.
