Experts said that in the past few years, land plots in the suburbs of Hanoi have experienced “fever”, thereby pushing up the price of other segments such as apartments.
While the entire real estate market fell silent, Hanoi and Ho Chi Minh City were still areas that recorded a high level of interest, as well as a high number of postings. In addition, real estate prices in these two cities are still increasing, especially in the apartment segment.
Specifically, in the first eight months of 2022, the demand for apartments in Hanoi and Ho Chi Minh City both increased compared to the same period last year. Specifically, the number of buying apartments in Hanoi and Ho Chi Minh City increased by 9% and 4%, respectively. The number of apartment rentals in these two cities increased even more strongly, by 25% and 48% respectively.
Attracting a large amount of interest, the type of apartment with the selling price has increased in the past 8 months. Notably, the growth rate of apartment prices in Hanoi is about double or even triple that of HCMC, depending on the segment. The apartment segment in Hanoi saw the asking price increase from 15% to 15.5% over the same period last year. Meanwhile, the selling prices of affordable, mid-end and high-end apartments in Ho Chi Minh City increased by 3%, 5.5% and 8%, respectively.
Mr. Dinh Minh Tuan – Director of Batdongsan.com.vn in the South region said that in recent years, the price of apartments in Ho Chi Minh City is significantly higher than in Hanoi. But up to now, the price adjustment is almost the same but happens on two different price bases, the percentage change will inevitably be different. At the same time, in the past few years, land plots in the suburbs of Hanoi have experienced “fevers”, thereby pushing up the general price of other segments such as apartments.
On the Hanoi apartment market, mid-end apartments (30-50 million VND/m2) had the highest increase in selling prices (15.5%). This is the segment that attracts the most interest and increases the most (10%), the number of posts also increases by 11%.
In Ho Chi Minh City, luxury apartments (55 million VND/m2) ranked first in terms of price increase, interest level and number of postings. Specifically, the price of high-end apartments in Ho Chi Minh City increased by 8%, the number of purchases increased by 16% and the number of postings increased by 25%.
Although the asking price has increased, but according to DKRA, the overall absorption rate in the projects “bottomed out” is the lowest in more than 3 years, the popular fluctuation is only 16% – 26% of the shopping carts opened for sale in the past 3 years.
Grade A apartments continue to be the leading segment of the market, the remaining segments hardly recorded new supply for sale in the month.
In the coming time, the disbursement of loans to buy real estate is eased, the market may recover at the end of the year, but it will be difficult to have a sudden change in the short term.