Apartment prices skyrocket, home buyers have a wait-and-see mentality

Apartment transactions decrease, prices increase.

According to the Ministry of Construction 's Q2/2024 report on housing and the real estate market, 25,885 successful transactions were recorded for apartments and individual houses.

According to the Ministry of Construction's comparison, the number of successful land plot transactions reached 124,991. Specifically, the number of transactions for apartments and detached houses was 72.2% compared to the first quarter and 87.08% compared to the same period in 2023; the number of land plot transactions was 127.9% compared to the first quarter of this year and 185.8% compared to the same period in 2023.

In the second quarter of 2024, apartment prices increased by an average of 5-6.5% compared to the previous quarter and by 25% compared to the same period last year. Many projects in Hanoi saw increases of up to 20-30%. In Ho Chi Minh City, the asking prices for apartments in some mid-range projects increased by 2-5%, while others increased by 10-18%.

Both primary and secondary apartment prices have increased (Photo: Ha Phong)

The surge in apartment prices has slowed down.

The Ministry of Construction believes that the increase in apartment prices is not only occurring in newly launched projects but also in many older apartments that have been used for many years. However, this situation is only happening for a short period and shows signs of slowing down towards the end of the quarter due to already high prices and buyers' wait-and-see attitude.

Speaking to a reporter from Dan Tri newspaper , Mr. Nguyen Van Dinh – Chairman of the Vietnam Association of Real Estate Brokers (VARS) – stated that the reason for the sudden surge in apartment prices is the scarcity of supply. Supply is less than demand, forcing prices to rise to maintain balance. However, the price increase shows signs of being influenced by speculators creating artificial supply and demand to drive up prices in the resale market.

He believes that apartment prices will see some adjustments, but not significant ones. To stabilize apartment prices, coordination between government agencies and market participants is necessary. Furthermore, customers and investors need to be discerning, choosing products that suit their financial capabilities and have guaranteed legal compliance. Homebuyers should absolutely avoid chasing trends or herd mentality.

Speaking at a recent event, Mr. Pham Duc Toan – General Director of EZ Real Estate Investment and Development Joint Stock Company – stated that while the overall market has been gloomy recently, the apartment segment has quietly seen price increases, especially in Hanoi. In Ho Chi Minh City and Da Nang , prices are already high, so the rate of price increase is not as pronounced.

"After Tet, I was shocked by the rate at which apartment prices increased, with some areas seeing price hikes every day. For example, in Trung Hoa Nhan Chinh, the rate of price increase was so rapid that even those of us in the industry were taken aback," Mr. Toan said.

According to him, given the difficult market conditions, the struggling economy, and the fluctuating incomes of the people, this price increase is unusual. However, the apartment segment has now stabilized. "I liken the recent increase in apartment prices to a summer thunderstorm – prices rise quickly and fall just as fast," Mr. Toan said.

Source: https://dantri.com.vn/bat-dong-san/gia-chung-cu-tang-vun-vut-nguoi-mua-nha-co-tam-ly-cho-doi-20240815105609598.htm