Apartment prices 'explode', selling for up to 130 million VND/m2

TPO - Many new apartment projects recently opened for sale in Hanoi and Ho Chi Minh City have quite high prices. In Hanoi, the average price ranges from 45-90 million VND/m2, in Ho Chi Minh City the price can be up to 130 million VND/m2.

According to Batdongsan.com.vn, many new apartment projects opening for sale in Hanoi and Ho Chi Minh City all have quite high prices.

In Hanoi, the average price ranges from 45-90 million VND/m2. In Ho Chi Minh City, the average price ranges from 45-130 million VND/m2.

A survey by the Institute of Construction Economics - Ministry of Construction and the Vietnam Real Estate Association shows that the average selling price of apartments in some projects in Hanoi is currently fluctuating around 50-70 million VND/m2. The price of apartments for sale has been recorded to continuously increase in both the primary market (sold by investors) and the secondary market (buyers from investors who then resell).

According to Mr. Tran Quang Trung - Director of Business Development of One Housing, the Hanoi apartment market has established a new price level. Mr. Trung said that some investors launched and sold very quickly despite the sharp increase in prices. This is because the supply is lower than the consumption, forcing the market to accept the new price level.

Mr. Trung commented that in the coming time, apartment prices may remain stable before entering a new price increase cycle, because supply in the next 1-2 years will be lower than market demand.

Apartment prices are getting higher and higher.

According to One Housing, the supply of the Hanoi market in 2024 is expected to reach 22,000 units, higher than the period 2020-2023 and equal to about 69% compared to 2019 - the period before COVID-19. In particular, the high-end segment with a price range of 50-80 million VND/m2 (excluding 10% VAT and 2% maintenance fee) will continue to increase its market share and account for the majority of about 70% in the last months of this year and about 68% in 2025.

In particular, in 2025, the Hanoi market will see many luxury segment projects priced from 80-230 million VND/m2 in the West and North, while the mid-range segment of 30-50 million VND/m2 is expected to account for only about 5% of the total supply in the Hanoi market.

Mr. Dinh Minh Tuan - Director of Batdongsan.com.vn in the South - said that over the past 10 years, apartment prices in Hanoi have always been about 30% lower than those in Ho Chi Minh City. However, recently, the average price of apartments in Hanoi has increased to about 50 million VND/m2, catching up with the price in Ho Chi Minh City.

“When apartment prices increase rapidly and approach the prices in Ho Chi Minh City, the market will tend to adjust until the end of 2024. At the end of this period, the market will adjust again,” said Mr. Tuan.

According to Savills Vietnam’s research on real estate buyers’ psychology, the majority of demand is from middle-income earners who can afford apartments priced under VND3 billion. However, currently, although there are many affordable products priced under VND3 billion, they are not available for sale because people have settled down and have no need to sell.

"When the Land Law comes into effect, it is predicted that the real estate market will enter a new cycle. However, in the short term, prices cannot be adjusted because supply has not improved. Therefore, investors need to wait for legal guidance documents, when supply is predicted to improve and prices will be more stable," said a representative of Savills.

Previously, the Ministry of Construction sent an official dispatch to the People's Committees of provinces and cities requesting an inspection of the high price of apartments. According to the Ministry of Construction, in Hanoi, there is a situation where the price of apartments in some projects... is abnormally high compared to the market situation and people's needs.

Ngoc Mai

Source: https://tienphong.vn/chung-cu-bong-gia-ban-toi-130-trieu-dongm2-post1675212.tpo