The surplus of luxury apartments, the shortage of affordable housing for the majority of the population, an assessment of the impact of the new land price list in Ho Chi Minh City, and procedures for buying and selling apartments in 2024… are among the latest real estate news.
 |
| Latest real estate news: In Hanoi and Ho Chi Minh City, there are no longer any apartment segments with prices affordable to the majority of the population. (Photo: Hai An) |
Real estate prices have skyrocketed.
The National Assembly 's supervisory delegation has just submitted to the delegates a report on the results of its supervision of "the implementation of policies and laws on real estate market management and social housing development from 2015 to the end of 2023".
Looking back at the period from 2015 to 2021, the market developed vibrantly and strongly, with abundant supply and many new types of real estate such as: tourist apartments (condotels), resort villas, etc. However, the monitoring team assessed that there were "inadequacies" in the structure of real estate products, which were not rational, with an imbalance between supply and demand, mainly targeting the high-end segment and financial investment goals, with few products suitable for the income of the majority of the population.
In the 2022-2023 period, the real estate market declined, and businesses faced many difficulties due to the shortcomings and limitations of the 2015-2021 period being revealed under the pressure of the Covid-19 pandemic. At this time, the supply was much more limited than in the previous period. Real estate prices skyrocketed compared to the increase in income of the majority of the population.
In Hanoi and Ho Chi Minh City, there is no longer a segment of apartment buildings with prices affordable to the majority of the population.
Statistics show a growing disparity in the structure of real estate products. According to a report by the Hanoi People's Committee, the mid-range and high-end apartment segments account for the majority. In 2022, apartment prices increased sharply, but transaction volumes were low, accounting for only about 10% of the products offered on the market. Prices for individual houses remained high and there were almost no transactions.
In Ho Chi Minh City, real estate transactions have decreased sharply, while real estate prices have increased uncontrollably, creating an imbalance between price and value. According to the Ho Chi Minh City Real Estate Association, since 2021, there are no longer any affordable apartment segments (priced below 25 million VND/m2) in the city.
Meanwhile, a large number of residential real estate projects are facing obstacles, delays, slow implementation, and stagnation, resulting in significant waste of land and capital invested by businesses. This increases difficulties and costs for investors, and drives up product prices.
The Supervisory Delegation's report also pointed out the inadequacy of the market, with an oversupply of high-end, large-sized, and expensive housing products, while there is a shortage of social housing and low-cost housing suitable for the needs of the majority of the population. In addition, the average price of social housing is still too high compared to the income of the beneficiaries.
Furthermore, the slow disbursement of funds from the 120,000 billion VND credit package for social housing, worker housing, and the renovation and reconstruction of old apartment buildings, coupled with complex conditions and procedures, and high interest rates, have not been effective in attracting and encouraging investors and social housing buyers to access this credit package. These are significant obstacles to the development of social housing.
Based on the above facts, the Supervisory Delegation recommends that one of the immediate tasks is to propose specific solutions to effectively implement the Project to invest in the construction of at least 1 million social housing units for low-income earners and industrial zone workers in the period 2021-2030, ensuring progress, quality, and suitability to the needs and living conditions of the beneficiaries.
In the long term, the Supervisory Delegation recommends the early completion of research and proposals for amending, supplementing, and enacting new tax laws, including provisions for higher tax rates for those who use large areas of land, own multiple houses, are slow to utilize land, or leave land fallow. This will ensure consistency with the innovations in land law, improve the efficiency of land management and use, achieve the goal of income redistribution, and mobilize reasonable and stable revenue sources for the state budget, based on international practices and in accordance with Vietnam's socio-economic conditions.
Apartment prices in Hanoi continue to reach new highs.
According to online data from Batdongsan.com.vn, Hanoi apartments have consistently reached record high prices in a short period. At the beginning of 2018, the asking prices for apartments in Hanoi and Ho Chi Minh City were 27 million VND/m2 and 31 million VND/m2 respectively. However, after six years, by 2024, the average price increase for apartments in Hanoi reached 70%, while the increase in Ho Chi Minh City was lower, at 55%.
Data from the Vietnam Real Estate Brokers Association also confirms the rapid price increase of apartments in Hanoi. Accordingly, the Hanoi apartment price index in 2023 increased by approximately 38 percentage points compared to 2019. Meanwhile, the Ho Chi Minh City apartment price index only increased by about 16 percentage points. In fact, the upward trend in apartment prices is still continuing and has become stronger recently, with an average increase of 100-200 million VND per month.
Given the above situation, Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, commented that for the apartment market, the average price increase for a project will range from 8-12%. This is considered a positive increase. If the price increase rate is higher than the average, the market is showing signs of being unsustainable.
Regarding the Hanoi apartment market, Mr. Tuan believes that apartment prices have increased continuously in recent times, even skyrocketing in a short period. Therefore, at some point, perhaps within the next 2-3 years, Hanoi apartment prices will stop increasing, or if they do, the increase will be slow, fluctuating only around 5-6%.
Prevent land brokers from exploiting adjusted land price lists to inflate prices.
Regarding the adjusted land price list recently issued by the Ho Chi Minh City People's Committee and applied from October 31st to December 31st, 2025, real estate experts have offered their assessments of its impacts.
According to Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), the adjusted land price list was developed in compliance with the principle of market-based valuation. The drafting agency has incorporated many suggestions from the business community and experts.
Compared to the draft released for public comment at the end of July, the Chairman of HoREA believes that the newly issued land price list has been adjusted and changed in a "reasonable and appropriate" direction.
For example, in Hoc Mon district, according to the draft, land prices in some areas increased 50.7 times compared to the 2020 price list, but with the adjusted price list, this increase is only nearly 40 times.
Regarding the impact, according to Mr. Chau, the adjusted land price list ensures fairness between those who have fulfilled their financial obligations in the first 10 months of this year compared to those who have paid from October 31st onwards.
"The adjusted land price list hasn't immediately impacted the real estate market because commercial housing projects are currently valued using the surplus method. However, after some time, when developers acquire land use rights to develop projects, people will have a desire for higher prices than before, leading to an increase in housing prices," Mr. Chau said.
The Chairman of HoREA suggested that state agencies need to take measures to control the activities of "land speculators, brokers, and unscrupulous businesses," because this group may take advantage of the adjusted land price list to speculate and inflate prices.
Apartment buying and selling procedures in 2024
According to Article 160 of the 2023 Housing Law, transactions involving the purchase and sale of housing must meet the following six conditions.
Specifically, (1) Has a Certificate as prescribed by law.
(2) Not subject to ongoing disputes, complaints, or lawsuits regarding ownership rights as prescribed by law on dispute resolution, complaints, and denunciations.
(3) Currently within the ownership period for the case of limited-term home ownership.
(4) Not subject to seizure for enforcement of judgments or for execution of legally effective administrative decisions of competent state agencies or not subject to temporary emergency measures or preventive measures as decided by the Court or competent state agencies.
(5) Not in cases where there is a decision to reclaim land, or a notice of demolition of houses issued by a competent authority.
(6) The conditions stipulated in points (2) and (3) do not apply to the case of buying, selling, or leasing houses under construction.
Note: The following housing transactions do not require a Certificate of Ownership: Buying and selling houses under construction; selling houses in cases of dissolution or bankruptcy; organizing the donation of houses for charitable purposes, houses for the needy, and houses for national solidarity.
Buying and selling existing housing from the developer of a housing construction project in the following cases: housing belonging to public assets; social housing, housing for the people's armed forces, housing for resettlement not belonging to public assets; inheriting housing.
Documents proving eligibility for housing transactions as stipulated in this clause shall be implemented in accordance with government regulations.
Source: https://baoquocte.vn/bat-dong-san-moi-nhat-gia-chung-cu-ha-noi-lien-tuc-leo-dinh-khong-con-can-ho-vua-tui-tien-ngan-co-dat-thoi-gia-o-tphcm-291395.html
Comment (0)