Apartment prices continue to increase, making it increasingly difficult for people to buy.

A report recently released by batdongsan.com.vn shows that in the third quarter of 2023, the demand for buying apartments continued to increase by 1% and for renting apartments increased by 6% compared to the previous quarter. Of which, apartments priced at 2 - 4 billion VND were the most searched.

In 2023, apartment prices did not change much, increasing by 1-5% in Hanoi and almost unchanged in Ho Chi Minh City. However, in the long term from 2015 to present, the apartment price increase index in Hanoi and Ho Chi Minh City has exceeded the growth rate of people's income. After 8 years, apartment prices in Ho Chi Minh City and Hanoi increased by 82% and 56% respectively, while the income of people in urban areas increased by only 39%.

Mr. Le Bao Long, Strategy Director of Batdongsan.com.vn commented: “ Buying an apartment is becoming increasingly difficult for people when the rate of income growth cannot keep up with the rate of housing price growth. In the future, primary apartment projects will also have high prices because investors have to optimize profits when costs are pushed up. According to Batdongsan.com.vn's report on real estate consumer psychology, in the context of high housing prices, people are turning to renting or looking for ways to buy a house. But currently, many buyers have not yet taken out a loan to buy because they are still concerned about interest rates .”

After 8 years, apartment prices in Ho Chi Minh City and Hanoi increased by 82% and 56% respectively, while the income of people in urban areas increased by only 39%. (Illustration photo: Cong Hieu)

Because the price of apartments is constantly increasing and the demand for buying and renting this type of property is always high, the average profit rate when investing in apartments is up to 12.5%/year (combining the price increase and rental profit). This is a better and more stable profit rate than other types of investment such as stocks, gold, foreign currency, land, and savings.

The report of batdongsan.com.vn also shows that many real estate segments will continue to increase in price in the third quarter of 2023.

For example, besides apartments, the private house segment still has a level of interest and the asking price remains stable in Hanoi, because this type of housing serves real housing needs, so demand is still maintained.

In the third quarter of 2023, the asking price of private houses in many districts of Hanoi such as Tay Ho, Hai Ba Trung, Dong Da, Hoang Mai, Ha Dong increased by 4 - 9% compared to the same period in 2022. The level of interest also increased slightly by 2 - 3% in some other districts in Hanoi.

In Ho Chi Minh City, selling prices and interest in private homes are trending down, but the decrease is not more than 10% compared to the third quarter of 2022.

Meanwhile, the national low-rise real estate market has fallen into a slump with a decline in transactions. 57% of brokers participating in the survey said that transactions of low-rise real estate products have decreased by more than 50%, 28% commented that transactions have decreased by 10-50%.

Mr. Dinh Minh Tuan - Director of Batdongsan.com.vn in the Southern region, commented that price is the biggest barrier for buyers at the present time because low-rise real estate types have prices much higher than the average income of people and products with high value are difficult to borrow to buy.

The average selling price of townhouses in the third quarter of 2023 is VND 333 million/m2 in Hanoi, and VND 209 million/m2 in Ho Chi Minh City.

According to Mr. Tuan, each low-rise real estate segment has a different trend and recovery potential. Specifically, townhouses are still sluggish because tourism and retail activities have not grown strongly due to the impact of the macro economy and the post-COVID-19 pandemic.

Data from Batdongsan.com.vn also shows that the level of interest in townhouses in central urban areas has remained almost flat, while in coastal tourist provinces in the Central, Northern and Southern regions, it has decreased by 11%, 22% and 41% respectively compared to the first quarter of 2021.

Chau Anh

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