The Ministry of Construction's Q2/2024 report on housing and real estate market shows that the number of successful transactions of apartments and individual houses recorded 25,885 transactions. Meanwhile, land transactions reached 124,991 successful transactions.
According to the comparison of the Ministry of Construction, the volume of apartment and individual house transactions was 72.2% compared to the first quarter, 87.08% compared to the same period in 2023; the volume of land transactions was 127.9% compared to the first quarter of this year and 185.8% compared to the same period in 2023.
In the second quarter of 2024, apartment prices increased by an average of 5-6.5% compared to the previous quarter and increased by 25% compared to the same period last year. Many projects in Hanoi increased by 20-30%. Meanwhile, in Ho Chi Minh City, apartment prices in some mid-range projects increased by 2-5%, some increased by 10-18%.
The Ministry of Construction said that apartment prices increased not only in newly opened projects but also in many old apartments that have been used for many years.
In report No. 5333/BXD-QLN sent to the Office of the Government, the Ministry of Construction said that there are currently a number of associations, groups of speculators, investors and individuals operating in real estate brokerage who are distorting market information to inflate prices and create virtual prices.
Not only that, they also take advantage of people's ignorance to manipulate psychology, attracting investment according to crowd psychology for profit.
In the secondary market, the Ministry of Construction said, house/land prices are also being pushed up by brokers and intermediaries.
Normally, the seller will deduct an amount equivalent to 1% of the selling price to the broker. However, when the market is hot, the broker often adds a markup to the transaction with the customer.
"For an apartment with a selling price of about 5 billion VND, the broker can send a price difference of about 200 - 300 million VND, equivalent to 5% of the selling price" - Ministry of Construction stated in the report.
In addition to brokers, the Ministry of Construction believes that the local increase in apartment prices in the two major cities of Hanoi and Ho Chi Minh City is due to the continued limited supply of new projects and the small number of new projects opening for sale.
In particular, the scarcity of housing supply in the mid-range and affordable segments in recent times has pushed apartment prices up sharply.
Sharing with Lao Dong reporter, expert Nguyen The Diep - member of Vietnam Real Estate Association - also acknowledged that the high housing price increase has many causes including scarce supply, increased construction costs, supply-demand gap and partly due to brokers.
According to Mr. Diep, real estate brokers do not have enough potential to push up house prices. Individuals who skim deposits and sell at a higher price should be considered speculators.
To limit the situation of buying through a third party and having to pay the difference in fees, buyers should request to exchange and deposit directly through the homeowner, limiting going through an intermediary.
This expert believes that if there is a situation where real estate brokerage firms inflate real estate prices, it is likely that only the trading floor has the power to do this. As for individual brokers, they are just employees, and their financial potential is not enough to manipulate the market.
