Apartment prices grow steadily through each period

According to surveys and reports compiled by a number of provinces, the Ministry of Construction's announcement on housing and real estate market in the second quarter of 2024 shows that in major cities such as Hanoi and Ho Chi Minh City, apartment prices increased by an average of 5% to 6.5% in the second quarter of 2024 and 25% annually depending on the area and location. Apartment prices increased 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.

Old urban areas in Hanoi also increased in price sharply.

Specifically, in Hanoi, the selling price of some apartment projects on the market has increased sharply, such as in urban areas Royal City increased by 33%; The Pride 33%, My Dinh Song Da - Sudico increased by 32%; Vinhomes West Point increased by 28%.

Some old urban areas such as Trung Hoa - Nhan Chinh Urban Area, apartment prices also increased by 25%; resettlement apartment areas in Nam Trung Yen had a 20% increase...

According to the Ministry of Construction, to buy an apartment with a slower price increase, buyers must look to 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)...

Scarce supply, apartment prices in Ho Chi Minh City will continue to increase

The apartment market in Ho Chi Minh City in the second quarter of 2024 is also not out of the price increase trend.

According to a survey by a number of market research organizations, the fluctuation in selling prices of mid-range apartments in Ho Chi Minh City (price 35 - 55 million VND/m2) increased by 2%; high-end (price over 55 million VND/m2) increased by 5% compared to the same period in 2023.

At the same time, the selling price of used apartment projects in Ho Chi Minh City also tends to increase, especially in the inner city area, specifically the City Garden apartment project (Binh Thanh district) is selling for an average of 85 million VND per square meter, an increase of 18% over 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).

Demand for office space decreases amid economic downturn

In the second quarter of 2024, according to a survey, the selling prices of villas and townhouses in the project all tended to increase 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.

There is not much new supply of office space for lease nationwide in the second quarter of 2024.

Office rental demand in the first half of 2024 tends to decrease slightly compared to the previous period when the current business situation of enterprises is still facing many difficulties in the output market in the context of the domestic and world economies still facing many challenges.

"The number of enterprises remains almost unchanged, but the decline in production and business capacity also affects the demand for office expansion and office rental demand. For commercial premises, the demand for renting business premises tends to increase slightly compared to the end of 2023," the Ministry of Construction's announcement stated.

The average rental price of the whole market for offices and commercial premises in the quarter compared to the same period in 2023 increased slightly by about 1-3%. For retail premises, the rental price compared to the previous period was basically stable.

Industrial real estate adds new supply

In general, in the first 6 months of 2024, the industrial real estate market will be supplemented with new supply from a number of projects approved for investment and started construction.

Leasing capacity and occupancy rate at industrial parks in the second quarter of 2024 in key industrial parks in the North reached over 80% while in the Southern market, leasing capacity reached about 90%.

For the market of ready-built warehouses and factories, the average occupancy rate in the Northern industrial parks is about 70% for ready-built warehouses and 85% for ready-built factories; in the Southern region, this rate is about 60% for warehouses and 85% for factories, respectively (report of the Institute of Construction Economics)...

According to the General Statistics Office, the industrial production index (IIP) is estimated to increase by 7.54% over the same period last year; FDI capital in the industrial sector reached 6.83 billion USD, accounting for 71.6% of the total newly registered capital in the first half of 2024. These are factors that can increase the demand for industrial real estate when the investment trend in factory chains and industrial production lines in Vietnam by foreign investors is still on the rise.