Real estate market is gloomy, apartment prices in Hanoi still increase

ANTD.VN - Although the real estate market continues to be sluggish in the second quarter of 2023, apartment prices in Hanoi are still increasing due to scarce supply, especially in projects in Tay Ho district and surrounding areas.

The Ministry of Construction has just announced information on housing and real estate market in the second quarter of 2023.

Commercial housing supply continues to decline

Accordingly, for commercial housing development projects, the number of completed projects in the second quarter decreased sharply with only 7 projects (equivalent to 2,424 units). The number of projects was only about 50% compared to the first quarter and 29.17% compared to the same period last year.

Meanwhile, the number of projects under construction tends to increase with 986 projects (413,539 units), equal to about 141.26% compared to the first quarter and about 90.38% compared to the second quarter of 2022.

There are 15 newly licensed projects (3,239 units), only about 88.24% compared to the first quarter of 2023 and about 51.72% compared to the same period in 2022. Of which, the North has 07 projects; the Central has 03 projects; the South has 05 projects.

While the supply of commercial housing projects tends to decrease, investment projects in infrastructure construction to transfer land use rights for housing construction tend to increase quite strongly.

Of which, 25 projects were completed (with 1,916 land plots), equal to about 227.27% compared to the first quarter of 2023 and equal to about 156.25% compared to the second quarter of 2022.

There are 326 projects under construction (79,787 land plots), equal to about 131.45% compared to the first quarter of 2023 and about 155.24% compared to the second quarter of 2022.

The number of newly licensed projects is 45 projects (1,938 land plots), a sharp increase compared to 06 projects in the first quarter of 2023 and 10 projects in the second quarter of 2022.

Regarding social housing and worker housing projects, as of the second quarter of 2023, there are 294 social housing projects under construction nationwide, with a construction scale of about 288,499 units.

For real estate projects, apartments eligible for sale of future housing, there are 51 projects (6,205 units), only about 98.08% compared to the first quarter of 2023 and about 63.75% compared to the same period last year. The proportion of the number of types of real estate eligible for sale is mainly land and individual houses in the project.

Real estate market is gloomy, apartment prices in Hanoi still increase photo 1

Real estate market continues to be sluggish in the second quarter of 2023

Real estate transactions are gloomy

Real estate transactions in the second quarter continued to be sluggish with only 96,977 successful transactions. Of which, the number of transactions of apartments and individual houses only reached 29,725 successful transactions, equal to about 75.61% compared to the previous quarter and equal to more than 43% compared to the second quarter of 2022.

Transaction volume mainly focused on the land segment with 67,525 successful transactions, equal to about 99.98% compared to the previous quarter, equal to about 31.57% compared to the same period last year.

The Ministry of Construction said that the number of real estate searches nationwide by the end of the second quarter of 2023 decreased by about 33% compared to the same period last year, the number of real estate listings also decreased by about 44%, and the number of interested buyers of land decreased by nearly 50% compared to the same period in 2022.

“The transaction situation in the quarter was quiet due to the affected confidence of buyers and investors and the difficulties in credit limits and loan interest rates that have not been completely resolved,” the Ministry of Construction commented.

Apartment prices in Hanoi continue to increase while some localities decrease

The Ministry of Construction said that secondary transaction prices of apartments in some localities tended to decrease by 2-6% compared to the same period last year and decreased significantly in some localities such as Da Nang (down 5.8%), Dong Nai (down 3.5%), Hai Phong (down 3.1%).

The affordable apartment segment with prices under 25 million has almost no fluctuations and no new projects. The average primary price of the apartment market is about 47.5 million VND/m2 (excluding VAT and maintenance fees).

However, in Hanoi and Ho Chi Minh City, there are areas where prices are rising, even though the real estate market is showing signs of slowing down.

In Hanoi, the highest price increase is in projects in Tay Ho district and surrounding areas. The number of newly opened apartment projects in this area is very rare and all have prices around 80 million to 100 million VND/m2. Apartment projects on Pham Van Dong, Nguyen Van Huyen, Vo Chi Cong, Lac Long Quan streets... all have increased sharply compared to the original price and increased by about 1-3% compared to the previous quarter.

However, there are still price fluctuations in the mid-range segment in some areas with projects that have been in use for many years such as CT4 Vimeco II project (Cau Giay) down about 1.4%, Imperial Plaza (Thanh Xuan) down about 1.9%...

For individual houses and land in projects, investors are mainly interested in speculative properties and buyers are no longer interested as before. Many investors are facing cash flow problems, using too much financial leverage and investors are stopping supporting loan interest rates, while the market liquidity has decreased sharply, leading to many transactions of cutting losses.

The selling price of the real estate segment of villas and project land in many localities in the quarter continued to decrease by about 2-5% compared to the previous quarter and may continue to be adjusted to appropriate values, commensurate with the investment value of the product and regional infrastructure in the coming time.

Resort real estate continues to have a downward trend, however the decrease is not as much as at the end of last year because current capital costs are still high, but market liquidity is quiet, with almost no transactions recorded.

The adjacent and shophouse segments, primary selling prices have not fluctuated compared to the previous quarter and the same period last year. The condotel segment is also experiencing stagnant liquidity, most projects have many transactions, primary prices tend to decrease by 3-6% compared to the same period last year.

Real estate inventory increases

According to the Ministry of Construction, in the second quarter of 2023, although there are positive signals about policy mechanisms and bank interest rates are on a downward trend, many real estate projects are still being suspended due to problems related to legal regulations, planning adjustments, site clearance and fluctuations in raw materials... In addition, projects are also facing difficulties in terms of limited bank credit capital and corporate bonds.

Therefore, the inventory is assessed to continue to increase compared to the same period last year. The inventory proportion is mainly in the segment of individual housing real estate, land of projects and resort apartments of enterprises operating in the housing and resort sector, the current real estate inventory value is up to tens of thousands of billions of VND.

According to incomplete reports from localities (only 17/63 provinces), the real estate inventory in the second quarter of 2023 is about 16,688 units (1,714 apartments; 7,473 individual houses; 7,501 land plots).

Thus, the inventory ratio is mainly in the individual housing real estate segment and land plots of projects.

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