Apartment construction price is many times lower than apartment transaction price

The Ministry of Construction calculates that apartment buildings under 5 floors with basements cost 8.6 - 13.1 million VND/ ^m2 ; apartment buildings 6 - 20 floors with basements cost 10.1 - 12.9 million VND/ ^m2 ; apartment buildings 21 - 35 floors with basements cost 12.8 - 15.3 million VND/ ^m2 ; apartment buildings 36 - 50 floors with basements cost 15.6 - 18.3 million VND/ ^m2 .

Apartment prices are high compared to construction costs.

Regarding investment in building social housing, worker housing with height under 20 floors, low-rise townhouses, average price from 5.1 - 8.8 million VND/ ^m2 .

Also according to the Ministry of Construction, comparing with the actual selling price of apartments in Hanoi and Ho Chi Minh City, it is many times higher than the construction unit price. Specifically, in Hanoi, some projects have increased price fluctuations in the quarter such as: Vinhomes Metropolis (Ba Dinh District) increased by about 3.5% (up to 99.1 million VND/ ^m2 ), Lac Hong Westlake (Tay Ho District) increased by about 3.6% (up to 36.1 million VND/ ^m2 ), Mandarin Garden 2 (Hoang Mai District) increased by about 4.1% (up to 43.9 million VND/ ^m2 )...

Some projects with notable price fluctuations in the quarter include: Home City (Cau Giay District) down about 5.6% (down to 44.6 million VND/ ^m2 ), Eco Dream (Thanh Tri District) down about 5.3% (down to 34.1 million VND/ ^m2 ).

In Ho Chi Minh City, some projects increased in price during the quarter such as: Cosmo City (District 7) increased by about 3.8% (to 47.3 million VND/ ^m2 ), Hung Vuong 2 (District 7) increased by about 4.0% (to 34.8 million VND/ ^m2 ). But some projects decreased in price during the quarter such as: The Grand Manhattan (District 1) decreased by about 4.4% (to 163.6 million VND/ ^m2 ), The Western Capital (District 6) decreased by about 3.8% (to 36.1 million VND/ ^m2 )...

According to the Ministry of Construction, there are projects with prices increasing and decreasing, but compared to construction prices, they are still much higher, home buyers are having to pay very high prices to own apartments. One of the main reasons is that there is not much new supply, while the demand for housing is high, so apartment prices increase, and when a new price level is established, it rarely decreases.

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