Comprehensive inspection of mini apartments, a segment 'immune' to market impacts, land transactions increased by 35%

The Prime Minister signed an official dispatch requesting a comprehensive inspection of mini apartments, the difference in land prices between Hanoi and Ho Chi Minh City, opening registration files for the Green Garden Urban Area project in Lang Son... are the latest real estate news.

Bất động sản mới nhất: Thanh tra toàn diện chung cư mini, phân khúc ‘miễn nhiễm’ với tác động từ thị trường, giao dịch đất nền tăng 35%

Apartments are the type of real estate least affected by the negative impacts of the market in the past year. (Source: BXD)

Prime Minister requests comprehensive inspection of mini apartments

Recently, the Prime Minister has just signed and issued Official Dispatch 991 dated October 22, 2023 on strengthening the management of construction order and fire prevention and fighting (PCCC) for individual houses with many floors and many apartments.

The dispatch clearly stated that in some provinces, cities, urban areas, residential areas near industrial parks, export processing zones, economic zones, etc., the management of functional agencies is not effective.

In particular, the construction of individual housing projects with many floors and many apartments that do not comply with legal regulations, are built without planning, without permission, or without permission, still occurs.

Many projects do not ensure fire prevention and fighting regulations and standards, especially arbitrarily designing additional floors, arranging houses into many apartments or dividing rooms for the purpose of renting, buying, selling, transferring... leading to many consequences, potentially causing incidents and insecurity for the project.

Faced with this situation, the Prime Minister assigned the Minister of Construction to urgently inspect, review, promptly evaluate, issue legal documents to amend, supplement, and perfect regulations, norms, and standards on planning, design, fire prevention and fighting, licensing, management, use, and naming of individual houses with many floors and many apartments.

In addition, it is necessary to strengthen the work of establishing and managing construction planning, urban planning, construction order, and organizing comprehensive inspections of construction management activities of individual houses with many floors and many apartments (mini apartments).

The Ministry of Construction needs to take the lead and coordinate closely with the Ministry of Public Security to urgently research and find solutions to immediately overcome existing problems in fire prevention and fighting for individual houses with many floors, many apartments, and rental service businesses with high population density...

The Prime Minister also directed the Ministry of Industry and Trade to strengthen guidance, inspection, and handling of violations in electricity use...

The Head of Government requested the Chairmen of the People's Committees of provinces and cities to urgently review and evaluate all multi-storey, multi-apartment individual housing projects that have been put into use in the area to detect violations of construction order, especially violations of housing function conversion and violations of fire prevention and fighting regulations to strictly handle violations.

The Prime Minister emphasized that he will resolutely and strictly handle violations of construction order and put an end to illegal and unlicensed construction.

For new construction projects, local authorities must strictly control compliance with legal regulations on planning, construction, fire prevention and fighting, manage the issuance of construction permits, quality management, and construction order according to regulations.

Apartment search increased

According to information from the Ministry of Construction, in the third quarter of 2023, according to the synthesis of reports and survey information from localities and market research organizations, apartments are the type of real estate least affected by the negative impacts of the market in the past year because this type serves real housing needs.

Interest in apartments has shown signs of recovery, with demand for buying apartments increasing by 1% and for renting apartments increasing by 6% compared to the previous quarter. In particular, apartments priced from 2 to 4 billion VND are the most sought after; in major cities, there are signs of good absorption, concentrated in the apartment and housing segment priced under 10 billion VND in the central core area.

According to the report on housing and real estate market information in the third quarter of 2023 by the Ministry of Construction, in Hanoi City, in the primary market, the average selling price of newly opened apartments in the third quarter increased by nearly 7% quarter-on-quarter, increased by 14% year-on-year and reached about 50.8 million VND/m2. The selling price has been adjusted in an upward trend due to the overwhelming proportion of new supply in the high-end segment (over 90%). Along with that, some investors have adjusted prices up and opened for sale additional inventory on higher floors.

In the secondary market, the average selling price continued to increase from the previous quarter, reaching about VND32 million/m2, up 2.7% quarter-on-quarter and 0.8% year-on-year. All districts in Hanoi recorded an increase in secondary selling prices in the third quarter compared to the second quarter. Of which, Dong Da, Thanh Xuan, Tay Ho, Nam Tu Liem and Gia Lam increased by over 3%.

In the mid-range apartment segment, some typical projects include Moonlight 1 - An Lac Green Symphony Project (Hoai Duc district) with an offering price of about 39 - 42 million VND/m2; Hoang Thanh Pearl project (Nam Tu Liem district) with an offering price of about 45 - 50 million VND/m2; Sakura subdivision of Vinhomes Smart City project (Nam Tu Liem district) with an offering price of about 43 million VND/m2...

In the high-end apartment segment, the TNR The Nosta project (Dong Da district) has an offering price of around 60 - 75 million VND/m2; the Han Jardin apartment project has an offering price of around 51 - 82 million VND/m2...

In Ho Chi Minh City, in the third quarter of 2023, the number of newly launched apartments will mostly come from the next phase of existing projects. About 60% of the new supply in the first 9 months of 2023 will come from an urban area project in the East. About 96% of the new supply in the third quarter will come from the high-end segment and the remaining 4% of the new supply will be in the luxury segment, from the next phase of a project in the Thu Thiem New Urban Area. The primary selling price of the Ho Chi Minh City apartment market in the third quarter of 2023 will reach more than 60 million VND/m2.

In the secondary market, the average price reached VND45 million/m2, up 3% compared to the previous quarter. Meanwhile, secondary prices in the luxury and affordable segments remained almost the same compared to the second quarter. The quarterly increase was mainly due to the increase in secondary prices in the high-end and mid-range segments, especially for projects near the center such as Binh Thanh District, Thu Duc City.

How is the price of land near projects in Hanoi different from that in Ho Chi Minh City?

In a recent report, the Ministry of Construction said that the real estate market has shown signs of a more positive recovery compared to the first half of the year. In particular, the number of searches for transactions in the land and apartment segments has recovered well and the supply from new projects and transactions is increasing.

According to data compiled from local construction departments, the number of transactions in the land segment in the third quarter reached 91,277, an increase of 35.72% compared to the second quarter.

The search demand and interest of investors in land products in real estate projects has increased compared to the second quarter, however, the overall transaction situation has not improved much.

The land segment still accounts for the largest proportion of real estate inventory in the third quarter. Specifically, the reported data of 52/63 localities shows that the real estate inventory in the third quarter was about 16,940 units, including apartments, individual houses, and land. Of which, apartment inventory was 3,196 units; individual houses were 6,554 units, and land inventory was 7,190 lots.

Transaction prices of villas, townhouses and project land in many localities have slowed down compared to the previous quarter. In Hanoi and Ho Chi Minh City, transaction prices in the central area were basically stable or only slightly decreased while suburban districts and outlying areas saw a greater decrease.

In Hanoi, the areas of Ring Road 4 passing through Hoai Duc district (near Duong Lieu industrial cluster, Song Phuong overpass) cost about 100 million VND/m2. The area near Vinhomes Wonder Park project in Dan Phuong district costs about 140 million VND/m2. The area at the beginning of Nhat Tan bridge in Dong Anh district costs about 200 million VND/m2 with beautiful lots facing the main road.

In Ho Chi Minh City, the land price at Thu Thiem Villa (District 2) is about 126.2 million VND/m2, The EverRich III (District 7) is about 115.5 million VND/m2, Dong Tang Long (District 7) is about 66.2 million VND/m2, Hoang Anh Minh Tuan (District 9) is about 91.5 million VND/m2, Kim Son (District 7) is about 136.5 million VND/m2, Kien A Residential Area (District 9) is about 72 million VND/m2.

Lang Son: Opening registration files for Green Garden Urban Area Project

Recently, at the Green Garden Urban Area Project in Mai Pha Commune, Lang Son City and Yen Trach Commune, Cao Loc District, Lang Son Province, registration documents for implementation were opened with 2 investors.

Perspective of Green Garden Urban Area planning. (Source: Green Garden)

Accordingly, the Project has a preliminary implementation cost of 1,124 billion VND; compensation and resettlement support costs of 113,492 billion VND, with a total land area of 37.71 hectares. Of which, the land area for housing construction is 138,534.92 m2 (excluding the current land area of 5,132.78 m2). Housing types include townhouses, villas, garden houses, resettlement houses, and social housing. The population size is 5,312 people.

Minutes of opening the project registration dossier include: 2 registered investors: Telin Group Joint Stock Company and the joint venture of Global Real Estate Investment Joint Stock Company - Nam Son Consulting and Investment Joint Stock Company. Both investors have addresses in Hanoi.

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