The market recorded positive signals

According to data from the Ministry of Construction, interest in apartments has shown signs of recovery in recent times. Demand for buying apartments increased by 1% in the third quarter of 2023 and for renting increased by 6% compared to the previous quarter. Of which, apartments priced from 2 to 4 billion VND were the most sought after.

Positive market signals also appeared in major cities when absorption capacity was better than the previous period. Transaction volume was mainly concentrated in the apartment segment, in the segment under 10 billion VND in central urban areas.

However, the gap in market supply has not improved as new supply is mainly concentrated in the high-end segment. Therefore, transaction prices in the primary market still recorded a strong increase.

Specifically, in the Hanoi market, the average selling price of newly opened apartments in the third quarter in the primary market increased by nearly 7% quarter-on-quarter, 14% year-on-year and reached about VND50.8 million/m2.

“Selling prices have been adjusted in an upward trend due to the overwhelming proportion of new supply in the high-end segment (over 90%). Along with that, some investors have adjusted prices upward and opened additional sales funds on higher floors,” the report of the Ministry of Construction stated.

In the secondary market, the average selling price continued to increase from the previous quarter, reaching about VND32 million/m2, up 2.7% quarter-on-quarter and 0.8% year-on-year. All districts in Hanoi recorded an increase in secondary selling prices in the third quarter compared to the second quarter. Among them, districts such as Dong Da, Thanh Xuan, Tay Ho, Nam Tu Liem and Gia Lam increased by over 3%.

However, in the Hanoi market, there are still some projects in the affordable segment with prices ranging from 25 - 35 million VND/m2. Some projects include Anland Premium Duong Noi (Ha Dong) with an asking price of about 31 million VND/m2; One 18 Ngoc Lam (Long Bien) with an asking price of about 27.5 million VND/m2, Phuong Dong Green Home (Long Bien) with an asking price of about 32 million VND/m2...

Luxury apartment prices reach 200 million VND/m2

In Ho Chi Minh City, the number of affordable apartments is extremely small, including projects such as Diyas Sky (Tan Binh) with an asking price of about 25.5 - 32 million VND/m2; Citi Alto project with an asking price of about 29 - 34 million VND/m2.

Similar to the Hanoi market, the high-end apartment segment in Ho Chi Minh City is also dominating, in which the number of newly launched apartments in the third quarter mostly comes from the next phase of existing projects. Of which, about 60% of the new supply in the first 9 months of 2023 comes from an urban area project in the East. About 96% of the new supply in the third quarter comes from the high-end segment and the remaining 4% of the new supply is in the luxury segment, from the next phase of a project in Thu Thiem New Urban Area.

In particular, the primary selling price of the apartment market in Ho Chi Minh City in the third quarter of 2023 reached more than 60 million VND/m2. Of which, there are projects returning to record levels with selling prices up to 100 - 200 million VND/m2. Meanwhile, in the secondary market, the average price reached 45 million VND/m2, an increase of 3% compared to the previous quarter. Meanwhile, the secondary price in the luxury and affordable segments remained almost the same compared to the second quarter.

The report of the Ministry of Construction also shows that investors' interest in individual housing and project land has also increased compared to the previous quarter. However, the overall transaction situation has not improved much.

Specifically, the transaction prices of the real estate segment of adjacent villas, individual houses and project land in many localities in the third quarter of 2023 have slowed down in terms of price reduction compared to the previous quarter. In Hanoi and Ho Chi Minh City, transaction prices in the central area are basically stable or only slightly decreased while suburban districts and suburban areas have a greater decrease.