Apartment prices have increased sharply in a short period of time.

The prolonged shortage of apartment supply and high apartment prices make it difficult for the majority of people to buy a home – Photo: NAM TRAN

The supply shortage persists, with a lack of affordable housing.

According to Tuoi Tre Online , in the second quarter of this year, only a few commercial housing projects in Hanoi launched their units, such as Lumi Hanoi, The Sola Park, QMS Top Tower To Huu, The Canopy Residences, Capital Elite, Masteri West Heights… The selling prices of apartments in these projects are all in the range of 50-80 million VND/ ^m2 .

Data from the Ministry of Construction also shows that in the first quarter of 2024, only 10 commercial housing projects were completed nationwide, with a construction scale of approximately 4,700 apartment units. The number of completed commercial housing projects is only about 34.5% of the fourth quarter of 2023 and 71.4% of the same period last year.

In addition, the number of newly licensed projects nationwide was 19 (a decrease of 3 projects), and the number of projects eligible to sell housing units under construction was 38 (a decrease of 9 projects compared to the same period in 2023). The selling price of apartment projects in Hanoi and Ho Chi Minh City in the first quarter of this year ranged from 50 to 70 million VND/ ^m² .

According to the Ministry of Construction, the supply of social housing in the first quarter was also very limited, with only 5 completed projects, comprising approximately 2,000 apartments, mostly concentrated in provinces such as Bac Giang, Thai Binh, and Khanh Hoa . In major markets like Hanoi, there were no projects, while Ho Chi Minh City had only one rental housing project with a mere 242 units.

Notably, the number of commercial apartment projects under development in Q1 2024 reached 984 projects (an increase of 130 projects) compared to the same period last year. This figure includes hundreds of projects that have been stalled for many years and are awaiting resolution of obstacles.

Many experts expect that from August 1st, when the Land Law, Housing Law, and Real Estate Business Law come into effect, and the guiding documents for these laws are issued, many projects will have their obstacles removed, freeing up the supply of housing for the market.

	2015	2024
Apartment	23	45
Home	51	126
Townhouses	85	225
Villa	45	140
Land plots	9	25
Vacation villa	45	63

Apartment prices have increased sharply in a short period of time.

Regarding real estate asking prices, Mr. Dinh Minh Tuan – business director of Batdongsan.com.vn – said that there has been a significant increase in Hanoi and Ho Chi Minh City during the first six months of this year.

Compared to Q1 2023, asking prices for various types of real estate in Hanoi at the end of Q2 2024 increased sharply, with apartments rising by 31%, townhouses by 10%, villas by 18%, detached houses by 32%, land plots by 19%, and terraced houses by 10%. Meanwhile, in Ho Chi Minh City, only apartment asking prices increased by 6%, while other types of properties remained unchanged.

The apartment segment is considered a driving force for the recovery of the Hanoi and Ho Chi Minh City markets in the first few months of the year. The main reason for the increase in apartment prices in Hanoi is the limited supply in the city center and high initial selling prices.

A survey by Batdongsan.com.vn of 537 real estate agents revealed the following reasons for the apartment price surge in the first few months of 2024: 32% believed the price increase was due to a scarcity of supply and limited choices; 23% attributed it to a strong resurgence in demand; 15% believed the new supply was priced too high; 15% attributed it to investment and speculation driving up prices; and 11% attributed it to real estate agents manipulating prices.

In addition, interest in apartments in Hanoi and Ho Chi Minh City has also increased sharply. Compared to October 2023, the level of interest in apartments in May 2024 increased by 29% in Hanoi and 32% in Ho Chi Minh City.

A report by Batdongsan.com.vn also indicates that compared to the period 2013-2016, apartment prices in the 2023-2026 period have doubled. Specifically, the average price in 2013 was approximately 23 million VND/ ^m² , while the average price in the first six months of 2024 was approximately 45 million VND/ ^m² .

Mr. Nguyen Quoc Anh – Deputy General Director of Batdongsan.com.vn – commented that the real estate market in the first six months of this year is at a turning point, and in the third and fourth quarters of 2024, the market will enter a phase of exploration with small-scale liquidity.

By the first quarter of 2025, the market will enter a phase of consolidating funding and completing legal procedures. From the second to the fourth quarter of 2025, the real estate market will flourish and enter a stable development trajectory in 2026.

Given this trend, some experts predict that apartment prices may continue to rise in the coming period.

The current problem with apartment housing lies in the projected increase in land costs due to the new land valuation regulations taking effect from August 1st. In addition, construction costs are also trending upwards, and while there is a huge demand for housing, market supply is unlikely to increase significantly in the short term.

On the other hand, as project input costs increase, real estate investment businesses tend to invest only in the high-end apartment segment to maximize profits, while the supply of social housing cannot increase rapidly unless policies are truly attractive to private investors.

The supply of apartments in Hanoi is concentrated in two urban areas.

Data from OneHousing's Market Research and Customer Insights Center also shows that in Q1 2024, up to 80% of home sales in Hanoi were concentrated in two urban areas: Vinhomes Ocean Park and Vinhomes Smart City.

In the first five months of 2024, approximately 2,500 apartments were sold at Vinhomes Ocean Park, and about 5,600 at Vinhomes Smart City.

Source: https://tuoitre.vn/gia-can-ho-chung-cu-tang-manh-trong-thoi-gian-ngan-20240628094201846.htm