Apartment and Individual Housing Prices Continue to Rise
Apartment and Individual Housing Prices Continue to Rise
During the regular press conference for the third quarter of 2023 on October 19, Mr. Dau Minh Thanh, Head of the Office of the Ministry of Construction, announced that in the past quarter, the land segment had 91,277 successful transactions, an increase of 135.72% compared to the second quarter of 2023. Meanwhile, the apartment and individual housing segment had 29,723 successful transactions, an increase of 99.99% compared to the previous quarter.
RENEWED INTEREST IN APARTMENTS INDICATES RECOVERY
"However, there are signs of renewed interest in apartments, with a 1% increase in buying demand and a 6% increase in rental demand compared to the previous quarter. Among these, apartments priced from 2 to 4 billion VND are the most sought after. In large cities, there are indications of good absorption, focusing on the apartment and housing segments below 10 billion VND in the central core area. Apartments are also the least affected by the negative market impacts in the past year, as they serve essential housing needs," stated a representative of the Ministry of Construction.
In Hanoi, in the primary market, the average selling price of newly launched apartments in the quarter increased by nearly 7% quarterly, 14% annually, reaching approximately 50.8 million VND/m2. The upward trend in selling prices is attributed to the dominance of new supply in the high-end segment (over 90%). Some developers have adjusted prices and released additional inventory on higher floors.
In the secondary market, the average selling price continues to rise from the previous quarter, reaching around 32 million VND/m2, a 2.7% quarterly increase and 0.8% annually. All districts in Hanoi reported an increase in secondary market prices compared to the second quarter, with Dong Da, Thanh Xuan, Tay Ho, Nam Tu Liem, and Gia Lam showing increases of over 3%.
In Ho Chi Minh City, most of the newly launched apartments come from the next phases of existing projects. About 60% of the new supply in the first 9 months of 2023 comes from a urban project in the East. Approximately 96% of the new supply in the third quarter comes from the high-end segment, with the remaining 4% belonging to the luxury segment from the next phase of a project in the new Thu Thiem Urban Area. The primary market prices for Ho Chi Minh City apartments in the third quarter of 2023 exceeded 60 million VND/m2.
In the secondary market in Ho Chi Minh City, the average price reached 45 million VND/m2, a 3% increase from the previous quarter. While secondary prices in the luxury and affordable segments remained nearly unchanged from the second quarter, the quarterly increase was mainly driven by the rise in secondary prices in the high-end and mid-range segments, especially for projects near the city center such as Binh Thanh District and Thu Duc City.
