Ho Chi Minh City apartment market is about to increase in price following Hanoi

Demand for apartment research increases

Since the beginning of 2024, the real estate market in Ho Chi Minh City has recorded a lot of positive information when a series of businesses ran advertising programs, launched projects, and announced sales of new products.

In particular, many brokerage floors are currently recording an increasing number of visitors coming to visit and learn about projects. Research data from the Vietnam Association of Realtors (VARS) shows that the apartment price index in Hanoi in 2023 increased by about 38 percentage points compared to 2019. In Ho Chi Minh City, it was 16 percentage points.

Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com said: “In Ho Chi Minh City, apartment prices are still on the rise, but the increase is only about 4% compared to the same period in 2023. The apartment market in this city has witnessed many adjustments in recent years, causing the price level to stay high, so it is expected to remain stable. This has helped increase the number of customers interested in this segment.”

Real Estate - Ho Chi Minh City apartment market is about to increase in price following Hanoi — Investors' demand for information on buying apartment projects is increasing. (Photo: PS).

According to VARS, the number of customers buying apartments in Ho Chi Minh City and neighboring provinces such as Binh Duong and Dong Nai has not increased much. However, investors have started to research and consider many factors before investing in a project.

Experts also commented that in recent times, the stagnation of real estate segments and the decline in apartment supply have caused a shortage of products in this segment. Meanwhile, the real housing needs of people are increasing. Meanwhile, the problem of social housing and accommodation has not been completely resolved, sharing the burden of housing.

Therefore, in the short term, apartment prices in the center of big cities will continue to increase, especially in the affordable and mid-range segments. Meanwhile, the purchase and resale prices of high-end and luxury projects may record a slight decrease.

Hanoi apartments increase purchasing power, Ho Chi Minh City waits to "catch the wave"

The latest data from Batdongsan.com shows that the average selling price of apartments in Hanoi in the first two months of this year increased by 17% compared to the same period in 2023. In fact, many buyers, sellers and real estate brokers also commented that Hanoi apartment prices are "escalating".

Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, said that Hanoi apartments have not yet “crazy prices”. This price increase is partly reflecting the supply-demand relationship. In Hanoi, the supply is not enough to meet the demand, leading to the phenomenon of prices still going up.

In addition, Batdongsan.com also said that apartment projects that are seeing sharp increases in selling prices include: Royal City, The Pride, My Dinh Song Da Urban Area - Sudico, Sun Grand City...

In general assessment of the market in the coming time, Mr. Nguyen Quoc Anh said that apartment prices can continue to increase if demand exceeds the old peak.

“The number of people looking to buy apartments in Hanoi increased significantly from the second quarter of 2023, peaking in August 2023. After that, the number of people selling apartments increased, causing demand to decrease. However, in December 2023, the demand for apartments increased sharply again. By February 2024, it had almost returned to the peak of August 2023,” Mr. Anh shared.

Real estate - Ho Chi Minh City apartment market is about to increase in price following Hanoi (Figure 2). — Apartments are still a scarce segment in the market and continue to be an attractive point for investors (photo PS).

Mr. Le Van Hung, Director of Nam Phat Real Estate Construction Joint Stock Company, commented: “The Hanoi market currently has a good number of customers because investors have real housing needs, many people have changed their thinking and moved from mini apartments, houses in alleys to apartments, apartment complexes to find a better living environment. Meanwhile, the market in Ho Chi Minh City and neighboring provinces is also bustling when a series of apartment investors continuously offer and introduce products to the market.”

“It can be seen that compared to 2023, the level of customer interest in the apartment segment in Ho Chi Minh City has increased significantly. If the market in Hanoi has heated up, then in the coming time, the "wave" will also return to Ho Chi Minh City. When the cash flow circulates, investors will continue to look for suitable real estate segments, especially apartments in Ho Chi Minh City are currently at a stable price, and the projects are being prepared by investors with proper legal procedures. This will certainly stimulate the real estate market in the South," Mr. Hung shared.

Experts recommend that investors and real estate buyers and sellers should spend more time observing market developments in the coming period. If the level of interest in apartments is high, prices may increase in the near future. Therefore, those with real housing needs need to know how to seize the opportunity to avoid buying high-priced products.

Speculators should also choose to learn and "surf" at the right time, avoiding being caught up in the market when apartment prices have increased too high.

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