According to data recently released by Batdongsan.com.vn, many newly launched projects in Hanoi and Ho Chi Minh City have quite high prices. In Hanoi, the average price ranges from 45 million VND/m2 to 90 million VND/m2. In Ho Chi Minh City, the average price ranges from 45 million VND/m2 to 130 million VND/m2.
In the third quarter of 2024, the price of private houses increased to 173 million VND/m2 compared to 95 million VND/m2 in the first quarter of 2021. In addition, the price of land in this area increased to 46 million VND/m2 compared to 27 million VND/m2 in the first quarter of 2021.
In the Southern region, the price fluctuations of land and private houses were not too large. The price of private houses increased to 106 million VND/m2 and the price of land increased slightly to 17 million VND/m2.
Forecasting the real estate price developments in the coming time, Mr. Nguyen Quoc Anh - Deputy General Director of Batdongsan.com.vn said that the new legal corridor with 3 new laws: Housing Law 2023, Real Estate Business Law 2023 and Land Law 2024 will increase the prices of many types of real estate.
Land costs and many new regulations put upward pressure on both primary and secondary markets. The reason for the increase in land prices is due to the increased frequency of land price updates when the land price framework was removed and the land price table was updated annually, instead of every 5 years as before. The increase in land prices is also due to increased accuracy when the deduction method was removed and comes from regulations on the conditions for applying 4 land valuation methods.
In addition, stricter legal certification when adding conditions for granting land use right certificates for land in use without disputes will also increase land prices when requirements for land with clear legal status are increasingly emphasized and focused on.
Not only land prices increase, but primary real estate prices also increase due to the cost of site clearance increasing with land prices. In addition, regulations on resettlement procedures will push up primary real estate prices when investors must arrange resettlement housing in the project, implemented before reclamation and clearance.
The conditions for resettlement housing are also clear and strict, as they must be equal to or better than the people's previous housing. The resettlement area must have complete infrastructure.
Mr. Quoc Anh said that secondary real estate prices will also increase due to the increase in primary prices. In each type, private houses increase according to land prices, the market expands. Land prices also increase when the supply of subdivided plots is tightened, requiring close price. Urban housing projects will be more popular than land projects and with investment in infrastructure and utilities, urban housing projects will also establish new prices.
