Scarce supply, old apartments in Hanoi and Ho Chi Minh City increase in price sharply

Apartment prices have been steadily increasing over time.

According to surveys and compiled reports from several provinces, the Ministry of Construction 's Q2/2024 housing and real estate market information bulletin shows that in major cities like Hanoi and Ho Chi Minh City, apartment prices increased by an average of 5% to 6.5% in Q2/2024 and 25% year-on-year, depending on the area and location. The price increase was not only seen in newly launched projects but also in many older apartments that had been used for many years.

However, this situation only lasted for a short period, and showed signs of slowing down towards the end of the quarter due to high prices and a wait-and-see attitude among buyers.

Prices in older urban areas of Hanoi have also increased sharply.

Specifically, in Hanoi, the asking prices of some apartment projects on the market have increased significantly, such as in urban areas like Royal City (up 33%), The Pride (up 33%), My Dinh Song Da - Sudico (up 32%), and Vinhomes West Point (up 28%).

In some older urban areas like Trung Hoa - Nhan Chinh urban area, apartment prices have also increased by 25%; resettlement apartment complexes in Nam Trung Yen have seen a 20% increase...

The asking prices for apartment projects on the market have seen a significant increase.

According to the Ministry of Construction, to buy an apartment with a slower rate of price increase, buyers should look to areas further from the city center, such as the Binh Minh Garden Duc Giang project; Le Grand Jardin Sai Dong..., and the selling price should not be less than 3 billion VND (ranging from 3.2-4.5 billion VND/apartment for 2-3 bedrooms).

In the secondary market, asking prices at some projects saw high average price increases during the quarter, such as 249A Thuy Khue (Tay Ho) increasing by approximately 12.1% (to VND 55.8 million/m2), D'. El Dorado II (Tay Ho) increasing by approximately 9.6% (to VND 80.6 million/m2), Vinata Tower (Cau Giay) increasing by approximately 9.9% (to VND 53.1 million/m2), Vinhomes D'Capitale (Cau Giay) increasing by approximately 13.9% (to VND 74.1 million/m2)...

With limited supply, apartment prices in Ho Chi Minh City will continue to rise.

The apartment market in Ho Chi Minh City in the second quarter of 2024 also followed the upward price trend.

According to surveys by several market research organizations, the asking prices for mid-range apartments (priced at 35-55 million VND/m2) in Ho Chi Minh City increased by 2%; and for high-end apartments (priced above 55 million VND/m2), they increased by 5% compared to the same period in 2023.

At the same time, the selling prices of used apartment projects in Ho Chi Minh City also tend to increase, especially in the inner city area. Specifically, the City Garden apartment project (Binh Thanh District) is being offered at an average price of 85 million VND per square meter, an 18% increase compared to the same period last year; the Antonia project (District 7) and Masteri Thao Dien (District 2) increased by 11% and 10% respectively.

The average asking price for old apartments in Ho Chi Minh City is up to 85 million VND per square meter.

However, according to analytical reports, apartment prices in Ho Chi Minh City may continue to rise in the near future due to the scarcity of new projects entering the market.

In the secondary market, asking prices at some projects saw high average price increases during the quarter, such as: Masteri Thao Dien (District 2) increased by approximately 6.1% (to VND 77 million/m2), Eco Green Saigon (District 7) increased by approximately 6.8% (to VND 61.1 million/m2), Jamona Heights (District 7) increased by approximately 5.9% (to VND 42.6 million/m2), and The Antonia (District 7) increased by approximately 7.2% (to VND 82.6 million/m2).

Demand for office space has decreased amid a challenging economic environment.

In the second quarter of 2024, according to surveys, the selling prices of villas and townhouses in projects tended to increase compared to the previous quarter. The rapid price increase in the apartment market has also had an impact, causing the prices of detached houses, townhouses in projects, and even houses in existing residential areas to tend to rise.

The supply of new office space for rent nationwide in Q2/2024 was not substantial.

The demand for office space in the first half of 2024 showed a slight downward trend compared to the previous period, as businesses continue to face difficulties in the export market amidst ongoing challenges in both the domestic and global economies.

"The number of businesses has remained almost unchanged, but the decline in production and business capacity has also affected the demand for office expansion and office rentals. As for commercial spaces, the demand for business space rentals tends to increase slightly compared to the end of 2023," the Ministry of Construction's statement said.

The average rental price for office and commercial space across the market in the quarter increased slightly by about 1-3% compared to the same period in 2023. For retail space in townhouses, rental prices remained basically stable compared to the previous period.

Industrial real estate adds new supply.

Overall, in the first six months of 2024, the industrial real estate market received new supply from several projects that received investment approval and commenced construction.

The occupancy rate and rental yield at key industrial parks in the North in Q2/2024 reached over 80%, while in the South, the occupancy rate was around 90%.

For the market of ready-built warehouses and factories, the average occupancy rate in industrial parks in the North is approximately 70% for ready-built warehouses and 85% for ready-built factories; in the South, this rate is approximately 60% for warehouses and 85% for factories (report by the Institute of Construction Economics)...

The occupancy rate and rental yield at key industrial parks in Northern Vietnam in Q2/2024 exceeded 80%.

According to the General Statistics Office, the industrial production index (IIP) is estimated to have increased by 7.54% compared to the same period last year; FDI into the industrial sector reached US$6.83 billion, accounting for 71.6% of the total newly registered capital in the first half of 2024. These factors could contribute to increased demand for industrial real estate as the trend of foreign investors investing in industrial factory chains and production lines in Vietnam continues to rise.

Source: https://www.nguoiduatin.vn/bo-xay-dung-khan-hiem-nguon-cung-chung-cu-cu-tai-ha-noi-va-tphcm-tang-gia-manh-204240815185445638.htm