The decline in real estate supply will cause prices to continue to climb.

According to the May 2024 market report by Dat Xanh Services (DXS - FERI), an economic , financial, and real estate research institute, new supply across the market showed signs of decline. Specifically, total primary supply in May decreased by 0.73% compared to April, reaching 47,458 units. This new supply was only about 38.5% of the previous month's total, largely coming from the mid-range and high-end apartment segments.

Because most new projects launched during this period were in the mid-range and higher segments, this contributed to an increase in average selling prices in major markets such as Hanoi , Ho Chi Minh City, Da Nang, and Can Tho. In addition, the current limited supply has also impacted the prices of some property types on the market.

For apartment buildings, except for Hanoi and neighboring provinces which maintained stable prices this month, other provinces and cities saw significant increases. Specifically, in the Central region, prices ranged from 29 to 104 million VND/m2, up 4-6%; in Ho Chi Minh City and neighboring provinces, prices ranged from 29 to 82 million VND/m2, up 1-2%; and in the Mekong Delta region, prices ranged from 31 to 45 million VND/m2, up 3-5%.

Excluding Hanoi and neighboring provinces, most other areas have recorded price increases for apartments.

For townhouses, selling prices in Hanoi and its suburbs range from approximately 40 to 176 million VND/m2, an increase of 3-4%; in Ho Chi Minh City and neighboring provinces, prices range from 31 to 103 million VND/m2, an increase of 3-5%. Meanwhile, prices in the Central and Western regions remained stable compared to April.

However, land plots, a type of property that attracts significant investor interest, have not seen much price change in major markets such as Hanoi and Ho Chi Minh City. In the Central region, prices range from 14-54 million VND/m2, an increase of 3-5%.

Meanwhile, the shophouse market remained relatively stable, recording only a 3-4% increase in Hanoi and neighboring provinces, with prices ranging from 34 to 242 million VND/m2. Villas, on the other hand, saw the highest price increases, reaching approximately 29-231 million VND/m2 (a 5-7% increase) and 63-329 million VND/m2 (a 3-5% increase) in Hanoi and Ho Chi Minh City, respectively.

The DXS - FERI report also predicts that in June 2024, several high-end and luxury projects will be officially launched, while the supply of new affordable and mid-range projects will become increasingly limited, and social housing projects have no plans to launch, so the price level is expected to continue its upward trend.

Villas are the type of property with the highest price increase.

However, a bright spot in the market is the significant increase in the average absorption rate of new supply compared to the same period last year, reaching an average of 58-62%. This growth stems from the relatively scarce supply of new units, particularly from projects in prime locations with high liquidity. Furthermore, projects that have already launched continue to announce attractive sales policies to accelerate sales. Many developers are offering substantial discounts, up to 30%, which has significantly contributed to the improved absorption rate in May.

The research unit also noted that market sentiment is showing signs of improving in a more positive direction as developers are urgently launching and selling projects that have met all legal requirements; brokerage firms are actively recruiting staff, strengthening cooperation, expanding their geographical reach, product types, and segments… In particular, customers with good financial capacity are quickly making purchase decisions when suitable products become available, even in some projects with relatively high selling prices.

Source: https://www.congluan.vn/nguon-cung-bds-sut-giam-khien-mat-bang-gia-se-tiep-tiep-co-xu-huong-leo-thang-post298396.html