According to Savills' price report, the selling price of primary apartments is currently at VND69 million/m2, up 6% compared to the previous quarter and 28% compared to the same period last year.
In the secondary market, the average apartment price in the third quarter was VND51 million/m2, up 10% compared to the previous quarter and 41% compared to last year. The average secondary price increased by 17% per year since 2020, with Grade C increasing the most at 20%/year, followed by Grade A increasing by 16%/year and Grade B increasing by 15%/year.
According to Ms. Nguyen Hoai An - Director of CBRE Hanoi, currently, apartment products for living and investment are quite diverse, and the price level is also higher than previous years. Therefore, waiting for housing prices to decrease is not feasible.
According to this expert, real estate prices can only decrease when there is excess supply and slow demand growth, affecting market liquidity and selling prices. Or there are major fluctuations in the macro economy, financial markets, economic growth, etc.
In Vietnam, although the economy is currently growing steadily, interest rates, inflation, and exchange rates are controlled at reasonable levels, the housing supply is still in a state of shortage and imbalance between segments. Therefore, in the short term, it is very difficult for real estate prices to decrease.
Forecasting the upcoming developments of the apartment market, Ms. Nguyen Hoai An said that in 2025, the supply of new apartments could reach over 30,000 units. Prices will not decrease but will not increase as rapidly as in the recent period, possibly only increasing by 5-8% compared to 2024.
Mr. Nguyen Quoc Anh - Deputy General Director of PropertyGuru Vietnam assessed that the Vietnamese real estate market in the third quarter of 2024 has passed through a period of many fluctuations and is gradually recovering. If in the third quarter of 2023, only 23% of brokers participating in the survey said that real estate transactions improved, in the third quarter of this year, 51% of brokers participating in the survey said that transactions have stabilized or increased again.
However, real estate prices remain high due to many factors. Land clearance costs, resettlement arrangements, and costs incurred during project development create upward pressure on prices.
Mr. Nguyen Quoc Anh said that currently, the average opening price of new projects is over 60 million VND/m2 but the absorption rate is still quite good, while the supply is scarce, in the second quarter of 2024, the whole country only has about 13,000 apartments eligible for sale. Therefore, real estate is still an attractive investment channel and it is difficult to reduce prices because the products are still absorbed, the demand for housing is still there.
The Deputy General Director of PropertyGuru Vietnam expects that in the future, project supply will improve, the economy will grow, the population dispersion process will be accelerated, infrastructure will be improved, and the number of utilities, jobs... in the suburbs will increase to increase home ownership opportunities for people.
