In a recent real estate market report by the Ministry of Construction, it was said that the rapid increase in prices has caused apartment prices to increasingly exceed household incomes, especially for low-income groups in Hanoi and Ho Chi Minh City.
Notably, in Hanoi, the heating up of apartment prices in the late first quarter - early second quarter of 2024 has caused selling prices to escalate in both the primary and secondary markets. Compared to the end of 2023, house prices have increased by nearly 18%, with some projects even having selling prices increase by more than 40%.
After a period of rapid increase, the price of transferred apartments has also established a new price level with nearly 40% of products priced over 5 billion VND/apartment; More than 19% of the market share belongs to the segment of 1.5-3 billion VND/apartment; Transferred apartments under 1.5 billion VND/apartment account for less than 3% and are showing signs of disappearing.
Also according to the report of the Ministry of Construction, the criteria for classifying new apartment segments were recently raised by 28-44%.
For example, the apartment segment priced under 45 million VND/m2 belongs to the affordable segment (previously under 25 million VND/m2); Luxury apartments have increased from over 50 million VND/m2 to about 70-100 million VND/m2.
Despite the upgrade in classification, the structure of new apartment supply still has a clear trend of being out of phase. The affordable segment accounts for only 5-7% of the total new supply, while the high-end segment accounts for 60-65%; Mid-range apartments from 45-70 million VND/m2 account for about 30-35% of the market share.
The Vietnam Association of Real Estate Brokers (VARS) recently commented that in the short term, housing supply in 2025 will continue to grow by about 10% compared to 2024, contributed more evenly by many projects that have had their problems resolved, have been re-implemented and are preparing to open for sale.
According to Vars, in terms of product types, apartments priced from VND50 million/m2 and above continue to lead the real estate market. Meanwhile, the supply of land will continue to decrease along with the tightening of regulations on subdivision and sale of land.
According to information from real estate consultancy CBRE Vietnam, the number of new apartments for sale in 2024 is increasing 3 times compared to 2023, exceeding 30,900 units. This is also the highest annual supply since 2020.
Forecasting the real estate market in 2025, Ms. Duong Thuy Dung - CEO of CBRE Vietnam - said that housing prices are expected to not decrease but the growth rate will slow down, about 5-8% compared to 2024.
In particular, primary selling prices continue to increase due to supply not meeting demand. Many real estate experts even predict that the new apartment segment priced under VND50 million/m2 in Hanoi will gradually disappear from the Hanoi market.
