Apartments receive much attention

As a type of real estate that meets the real housing needs, apartments are the most popular type of real estate in the current period with increasing demand, especially in the affordable segment. For that reason, this is the type of real estate with the most optimistic market developments in the recent period. While other types such as land, villas, and townhouses have all suffered a decline in liquidity and selling prices, even having to continuously cut losses, apartments are still sought after by many people.

A recent survey by Dat Xanh Services Research Institute on the type of real estate that customers are interested in in the near future also shows that apartments are the overwhelmingly chosen segment with 73%, 15% choose low-rise houses, 10% choose land and resort real estate accounts for only 2% of the answers.

Regarding the price range of apartments that customers are interested in, DXS - FERI surveyed 82% of the responses from customers choosing apartments priced under 2.5 billion VND, 13% choosing apartments from 2.5 - 3.5 billion VND, only 5% choosing the price range above 3.5 billion VND.

The above survey data shows that customer demand is still focused on products that are suitable for the purpose of buying for living, with prices suitable for the majority of current home buyers.

However, at present, new affordable products have almost disappeared in major markets, such as Ho Chi Minh City. According to a survey by Batdongsan.com.vn on home buying needs, 65% of respondents will buy a home in the next year. However, 46% of candidates said that current real estate prices are quite high and 26% said that prices are too high.

Although the selling price is currently higher than actual demand, the current imbalance between supply and demand in major markets will also have some impact on future selling prices.

Apartment prices will increase in 2024

According to Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, in 2023, the selling price of apartments in Hanoi and Ho Chi Minh City will not decrease even though the demand for this type of property is decreasing.

Notably, in November 2023, the level of interest in apartments decreased by 20% compared to February 2023, but the asking price of apartments in Hanoi in the fourth quarter of 2023 still increased from 6% to 9% compared to the first quarter of the year (depending on the segment). In Ho Chi Minh City, the fourth quarter of 2023 witnessed the price of high-end apartments remaining the same, while mid-range and affordable apartments decreased slightly from 1% to 4%.

Thus, the apartment price level has not decreased, but people's ability to buy a house has increased thanks to flexible incentive policies from investors. According to the Real Estate Consumer Psychology Report for the first half of 2024 by Batdongsan.com.vn, 46% of respondents are satisfied with the current market situation because there are more good financial options.

Commenting on this type, Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that the real estate supply in general, including the apartment type, will hardly have a breakthrough.

With the lack of supply, the apartment segment continues to be in short supply, making it difficult for prices to decrease and even increase. Transactions targeting real housing demand will be more numerous, but overall market liquidity will be difficult to achieve due to limited supply. Therefore, in 2024, primary apartment prices will continue to increase by an average of 3-8%. Of which, high-end apartment prices will increase the most.

"Apartments in big cities will continue to increase steadily because supply has not yet adapted to customer and investor demand. At the same time, most of the upcoming projects in Hanoi and Ho Chi Minh City are located in districts far from the center, where land funds are still abundant. The constantly improving infrastructure will continue to push the price level of these projects higher in the future," said Mr. Nguyen Van Dinh.