Apartment price TP. Thu Duc (Ho Chi Minh City) continued to increase strongly, Hanoi remained unchanged

Minh Hoàng
April 22, 2021

The real estate market in Hanoi and Ho Chi Minh City continues to record a scarcity of goods in many segments and types. While apartment prices in Thu Duc City (Ho Chi Minh City) continued to increase sharply, apartment prices in Hanoi almost did not change.
Hanoi: Land prices in the suburbs are pushed up by 50-60%.

– According to Nguyen Van Dinh, General Secretary of the Vietnam Real Estate Brokerage Association, in the first quarter of 2021, the Hanoi market recorded products eligible for sale. However, most of these products have been offered for sale since Q4 / 2020. Thus, it can be seen that there is almost no new supply to the Hanoi market. The real estate market in the first quarter of 2021 mainly sells outstanding apartments from 2020, in the middle and high-end segments. Apartment products are concentrated in the western and southern areas of Hanoi, the north bank of the Red River.

– In the low-rise building segment, there are some new products, concentrated mainly in Hoai Duc, Dong Anh and Gia Lam. A number of projects that were previously eligible to participate in the market are also being introduced for sale.

– In the Hanoi market, the absorption rate of affordable apartments is the highest (44.3%) but this is the lowest ever, as products are assessed in non-absorbent areas. leading to the location, convenient for transportation. The segment of apartments with prices over 35 million VND / m2 is difficult to sell and has a very low absorption rate of 15.3%. In the high-end segment, there is a sell-and-loss situation of investors, including some products located in good quality projects.

– Low-rise housing segment, although there are few products and high demand, but consumption is only average (63.6%). Currently, the price in this segment is very high, about 10 billion VND / unit on average. Because the selling price tends to increase strongly, the amount of resale in this segment is quite active.

The selling price of Hanoi apartments did not change much in the first quarter of 2021

– Regarding price fluctuations, selling prices of affordable and mid-end apartments did not change. The selling price of low-rise houses fluctuates between 80 – 90 million VND / m2, an increase of about 20% compared to quarter 4/2020.

– In the land plot segment, when there is information about to announce the urban planning along the Red River, there is an exciting and bustling phenomenon in some areas such as Dong Anh, Long Bien, Gia Lam. Land prices in the people in suburban areas are now being pushed up by about 50-60% compared to quarter 4/2020, some places have increased by 100%. Currently, land prices in peri-urban areas, preparing to go to the district, are at 30-50 million VND / m2. Meanwhile, land prices among people in urban districts are almost unchanged.

– Ho Chi Minh City: Scarcity of new sources
According to Mr. Dinh, at present, Ho Chi Minh City is in a shortage of products offered for sale in the market (including new products and inventory). Products on the market are mainly concentrated in areas: District 9, District 2 and City. Thu Duc. Some low-rise housing projects in District 9 fluctuate at VND 130-150 million / m2, HCMC. Thu Duc ranges from 230-250 million VND / m2. Low-rise houses offered for sale are also very limited, concentrated in areas such as TP. Thu Duc, Binh Chanh, Nha Be with very high selling prices, so the consumption rate is quite slow.

– Selling prices in the regions do not have much change compared to the end of 2020, because before that, the price has been pushed up very high. Particularly in Thu Duc City, apartment prices continue to increase. The average price in this area ranges from 60-70 million VND / m2.

– Due to the scarcity of new products, the inventory in Ho Chi Minh City market is also not much and prices are also at high thresholds, the demand for investment continues to move strongly to the neighboring area, Binh Duong, causing apartment prices in Binh Duong up to 30-35 million VND / m2.

– In addition, Mr. Dinh said, on the national level, after a long time slow approval of development of real estate projects in many provinces and cities across the country, in general, the real estate market is precious. 1/2021 elsewhere saw a decline in new projects and products being introduced to the market. In addition, due to the impact of the Covid-19 epidemic, the inventory from 2020 is still quite large, developers at this time also limit the sale of new products (although the quantity is not much) to focus on solutions. inventory decision. Therefore, the amount of products offered for sale and transactions on the market in the first quarter of 2021, mostly in the provinces / cities, is mainly inventories from 2020.

Source: Duy Bach