Luxury apartments priced over 50 million VND/m2 dominate the real estate market

Apartment prices in Hanoi and Ho Chi Minh City continue to increase

According to the report of the Ministry of Construction , in the third quarter of 2023, the level of interest in apartments has shown signs of recovery, the demand for buying and renting has increased. In particular, apartments priced from 2 - 4 billion VND are the most searched.

Regarding selling prices, in Hanoi, the average primary price of newly opened apartments increased by 7% compared to the previous quarter and increased by 14% compared to the same period last year, reaching VND50.8 million/m2.

Luxury apartments priced over 50 million VND/m2, real estate market influence picture 1 — Apartment prices in Hanoi and Ho Chi Minh City continue to increase. (Photo: TNMT)

Regarding this issue, Mr. Hoang Hai, Director of the Department of Housing and Real Estate Market Management, Ministry of Construction, said: The selling price has been adjusted in an upward trend due to the overwhelming proportion of new supply in the high-end segment (over 90%). Along with that, some investors have adjusted prices up and opened for sale additional inventory on higher floors.

In the secondary market, the average selling price maintained its upward momentum from the previous quarter, reaching about VND32 million/m2, up 2.7% quarter-on-quarter and 0.8% year-on-year.

All districts in Hanoi recorded an increase in secondary selling prices in the third quarter compared to the second quarter; in which, Dong Da, Thanh Xuan, Tay Ho, Nam Tu Liem and Gia Lam increased by over 3%.

In Ho Chi Minh City, in the third quarter, the number of newly launched apartments mostly came from the next phase of existing projects. The primary selling price of the Ho Chi Minh City apartment market in the quarter reached more than 60 million VND/m2.

In the secondary market, the average price reached VND45 million/m2, up 3% compared to the previous quarter. Meanwhile, secondary prices in the luxury and affordable segments remained almost the same compared to the second quarter.

Also related to apartment prices in the third quarter of 2023, the leader of the Ministry of Construction also said that the market has welcomed a number of affordable apartment projects, with prices of about 25 million - 35 million VND/m2.

For example, the One 18 Ngoc Lam project (Long Bien, Hanoi) has an asking price of about 27.5 million VND/m2, the Eurowindow River Park project (Dong Anh district) has an asking price of about 25.2 million VND/m2,...

Similarly, the Diyas Sky studio apartment project (Tan Binh district, Ho Chi Minh City) has an asking price of around VND25.5 - 32 million/m2; the Citi Alto apartment project has an asking price of around VND29 - 34 million/m2.

Ministry of Construction plans price framework for classifying luxury apartments

Although the market has seen the emergence of a number of affordable apartment projects, the leader of the Ministry of Construction said that the luxury apartment segment still accounts for a large proportion of the apartment supply.

Luxury apartments priced over 50 million VND/m2, real estate market influence picture 2 — In particular, luxury apartments priced at over 50 million VND/m2 dominate the real estate market. (Photo: DM)

For example, in Ho Chi Minh City, about 96% of the new supply in the third quarter came from the high-end segment and the remaining 4% of new supply was in the luxury segment, from the next phase of a project in Thu Thiem New Urban Area. This pushed the primary selling price in Ho Chi Minh City up to VND60 million/m2.

At the regular press conference for the third quarter of 2023 held on the afternoon of October 19, Mr. Nguyen Van Sinh, Deputy Minister of Construction, said that in the near future, apartments will be classified to determine selling prices and regulate service fees.

According to the Deputy Minister, previously there were no regulations on which apartments were considered high-end, medium-sized and affordable. But now a price range has been determined, accordingly, below 25 million VND/m2 is low-income apartments, above 40 million VND/m2 is high-end apartments.

“This level is set to classify projects, from which we will determine first, second, and third class apartments. Based on the classification, we will determine the selling price and regulate apartment service fees. This will create fairness and transparency,” Deputy Minister Sinh emphasized.

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