Lots of transactions, but inventory is still large

The Ministry of Construction has just released a report on the real estate market situation in the second quarter of 2024.

According to the assessment, the real estate sector has also had positive changes. Partly due to the promotion of public investment, which has had an impact, promoting business activities, and the reduction of bank interest rates has reduced input costs for businesses.

However, the real estate market in the quarter still has potential risks.

According to the aggregated data, the number of transactions of apartments and individual houses in the second quarter tends to decrease compared to the first quarter of 2024. Meanwhile, the number of land transactions tends to increase (in the first quarter of 2024, there were 35,853 transactions of individual houses and apartments, and 97,659 transactions of land).

Accordingly, the volume of apartment and individual house transactions was 72.2% compared to the first quarter of 2024, 87.08% compared to the same period in 2023; the volume of land transactions was 127.9% compared to the first quarter of 2024 and 185.8% compared to the same period in 2023.

Real estate inventory at projects in the second quarter of 2024 is about 17,105 units and plots (including apartments, individual houses, and land plots).

Of which, there are 2,999 apartments, 7,045 single-family homes, and 7,061 land plots. It can be seen that the inventory ratio is mainly in the single-family home and land plot real estate segments of projects.

The inventory of individual houses and land plots in the second quarter of 2024 is 14,106 units/plots (7,045 individual houses; 7,061 land plots), equivalent to 73% compared to the first quarter of 2024 (the inventory of individual houses and land plots in the first quarter of 2024 is 19,323 units/plots, of which: 8,468 individual houses, 10,855 land plots).

Many land investors cut losses to sell their goods.

The purchase price keeps increasing

In the second quarter of 2024, apartment prices increased by an average of about 5% to 6.5% in the second quarter and 25% annually depending on the area and location.

Apartment prices are increasing not only in newly opened projects but also in many old apartments that have been used for many years.

However, this situation only occurred for a short period, and showed signs of slowing down at the end of the quarter due to high prices and buyers' psychology being in a wait-and-see mode.

Apartment prices in Hanoi and Ho Chi Minh City are still increasing sharply. Specifically, in Hanoi, in urban areas such as Royal City, prices increased by 33%; The Pride by 33%, My Dinh Song Da - Sudico by 32%; Vinhomes West Point by 28%. In some old urban areas such as Trung Hoa - Nhan Chinh, apartment prices also increased by 25%; resettlement apartment areas in Nam Trung Yen increased by 20%...

However, if you want to buy an apartment with a slower price increase, you have to look for areas far from the center such as Binh Minh Garden Duc Giang project; Le Grand Jardin Sai Dong..., and the price is not less than 3 billion (from 3.2-4.5 billion VND/apartment with 2-3 bedrooms).

In the secondary market, the selling price of some projects with high average price increase in the quarter such as: 249A Thuy Khue (Tay Ho) increased by about 12.1% (to 55.8 million VND/m2), D'. El Dorado II (Tay Ho) increased by about 9.6% (to 80.6 million VND/m2), Vinata Tower (Cau Giay) increased by about 9.9% (to 53.1 million VND/m2), Vinhomes D'Capitale (Cau Giay) increased by about 13.9% (to 74.1 million VND/m2)...

Meanwhile, in Ho Chi Minh City, the apartment market in the second quarter of 2024 is also not outside the price increase trend.

The price fluctuations of mid-range apartments in Ho Chi Minh City (price 35-55 million VND/m2) increased by 2%; high-end apartments (price over 55 million VND/m2) increased by 5% compared to the same period in 2023. The selling prices of used apartment projects in Ho Chi Minh City also tend to increase, especially in the inner city, specifically the City Garden apartment project (Binh Thanh district) is selling for an average of 85 million VND per m2, an increase of 18% compared to the same period last year; the Antonia project (District 7) and Masteri Thao Dien (District 2) increased by 11% and 10% respectively.

However, according to analysis reports, apartment prices in Ho Chi Minh City may continue to increase in the near future due to the scarcity of new projects on the market.

In the secondary market, the selling price of some projects with high average price increase in the quarter such as: Masteri Thao Dien (District 2) increased by about 6.1% (to 77 million VND/m2), Eco Green Saigon (District 7) increased by about 6.8% (to 61.1 million VND/m2), Jamona Heights (District 7) increased by about 5.9% (to 42.6 million VND/m2), The Antonia (District 7) increased by about 7.2% (to 82.6 million VND/m2).

Particularly, the villa and townhouse segments in the project all had increased prices compared to the previous quarter. The hot price increase in the apartment market has also had an impact, leading to an increase in the prices of individual houses, townhouses in projects and houses in existing residential areas.