Apartment supply in Ho Chi Minh City 'hits bottom' in 12 years, selling prices continue to increase

The supply of new apartments for sale in Ho Chi Minh City in 2024 is only 5,050 units, the lowest in the period 2013-2024.

Overview of the Vietnam Real Estate Market Roundtable 2024 - Photo: B. NGOC

This assessment was made by Mr. Vo Huynh Tuan Kiet, head of residential project marketing at CBRE Vietnam, at the Vietnam Real Estate Market Overview conference for Q4 2024, held on January 8th in Hanoi .

The average selling price for apartments ranges from 72-76 million VND/m2.

According to Mr. Kiet, 2024 will be the year when apartment prices increase "tremendously," especially in the Hanoi market.

CBRE Vietnam's 2024 real estate market overview report also notes contrasting trends between the two key housing markets.

While the Ho Chi Minh City market has a limited supply of new housing units for sale, reaching nearly 5,300 products (apartments, townhouses, villas), the Hanoi housing market has seen a sharp increase in new supply, reaching nearly 38,000 new units for sale.

Specifically for the apartment market, in 2024 the supply of new apartments for sale in Hanoi tripled compared to 2023, reaching over 30,900 units, the highest number since 2020.

In Ho Chi Minh City, the supply of newly launched apartments reached 5,050 units, the lowest in the 2013-2024 period.

Nevertheless, in the last quarter of the year, the supply of apartments in Ho Chi Minh City improved significantly, increasing sharply compared to the previous three quarters.

The selling price of newly launched apartments in Hanoi in Q4 2024 reached 72 million VND/ ^m² (excluding VAT and apartment maintenance fees).

Primary market apartment prices in Hanoi in 2024 increased by 36% compared to the same period last year and 12% compared to the previous quarter.

This is the highest increase recorded in Hanoi in the last 8 years.

The Hanoi apartment market continues to experience a supply-demand imbalance, with the majority of new supply in the fourth quarter concentrated in high-end projects with complete legal documentation, developed within large urban areas in Nam Tu Liem district and Gia Lam district.

Another noteworthy point regarding the Hanoi apartment market is that areas further from the city center, such as Dong Anh and Van Giang ( in Hung Yen province bordering Hanoi), are increasing the supply of high-end apartments within large urban areas.

Besides high-end supply, the Hanoi market in Q4 also saw the launch of a new mid-range project in the suburban area of ​​Hanoi (Thach That district) with positive sales figures.

For the Ho Chi Minh City apartment market, the average primary selling price recorded in the fourth quarter reached 76 million VND/ ^m² (excluding VAT and apartment maintenance fees), an increase of nearly 24% compared to the same period last year.

Seventy percent of the new apartment supply in Ho Chi Minh City in 2024 will be concentrated in high-end and luxury projects. Projects launching subsequent phases have adjusted their selling prices upwards by 10-40% compared to the previous phase.

Typically, projects in the Thu Thiem area are offering their final phase of apartments at prices up to 490 million VND/ ^m² . Despite setting high initial selling prices, developers are also applying many preferential sales policies such as flexible payment plans up to 5 years and discounts ranging from 5% to 16% of the selling price.

Therefore, the absorption rate of apartments in newly launched projects in Ho Chi Minh City averages 70% of the total number of apartments offered for sale.

In particular, some high-end, luxury projects with convenient connections to the city center recorded sales rates of nearly 100% on the opening day, attracting a large number of investors with readily available cash and who opted for standard payment policies with high discounts.

Apartment prices in Hanoi and Ho Chi Minh City both increased sharply in 2024 - Photo: NAM TRAN

The market will be more stable in 2025.

According to a survey by CBRE Vietnam, in the secondary market (used apartments, bought and resold), the average selling price in Hanoi and Ho Chi Minh City reached VND 48 million/ ^m² and VND 49 million/ ^m² respectively (excluding VAT and apartment maintenance fees).

In Hanoi, secondary market prices increased by over 26% compared to the same period last year, while in Ho Chi Minh City they increased by 7%.

CBRE Vietnam forecasts that in 2025, the supply of new apartments in Hanoi will continue to be abundant, estimated at over 31,000 new units. However, the supply will mainly be concentrated in the high-end and luxury segments.

Commenting on the Hanoi and Ho Chi Minh City housing markets in the coming year, Ms. Duong Thuy Dung, CEO of CBRE Vietnam, said: "2025 will mark the beginning of a new cycle for the housing market, with abundant supply and improved product quality."

The market is expected to develop more stably and sustainably as it adapts to the amended laws and new implementing decrees and circulars. This will create a clearer legal environment, encourage investors to participate in project development, and open up opportunities for easier access to housing for the people."

Source: https://tuoitre.vn/nguon-cung-can-ho-tp-hcm-cham-day-12-nam-gia-ban-tiep-tuc-tang-20250108115552798.htm