Condo prices maintain an upward trend despite gloomy market

Condominium market prices in both Hanoi and Ho Chi Minh City maintain an upward trend this year, according to CBRE Vietnam.
Condo prices maintain an upward trend despite gloomy market ảnh 1Illustrative image (Photo: VNA)
Hanoi (VNS/VNA) - Condominium market prices in both Hanoiand Ho Chi Minh City maintain an upward trend this year, according to CBREVietnam.

Condominium primary selling prices in both cities remainedhigh, especially in Hanoi, with primary prices recording rapid growth mainlydue to the large quantity of new supply in the high-end segment. 

The number of high-end condominium units accounted for 75% in Hanoiand 84% in HCM City in 2023’s total new launches. On the other hand, themid-point segment, with selling prices more budget-friendly to the majority ofthe population, accounted for only a small proportion, while the affordablesegment has completely disappeared in both markets in the past few years.

Dung Duong, Executive Director of CBRE Vietnam, said: "In2023, we observed a reversal in the trend between the Hanoi and HCM Cityresidential markets, with the Hanoi market now following a similar trajectoryto that of HCM City about three years ago." 

Particularly, at the end of 2023, the average primary sellingprice in Hanoi reached 53 million VND per sqm (excluding VAT and maintenancefees), up 4.6% quarter on quarter and 14.6% year on year. This was the primaryprice recorded in HCM City during the 2020-2021 period. 

On the contrary, the primary prices for condominiums in HCM Citylevelled off at around more than 61 million VND per sq.m in 2023, down 1.7% yearon year. 
Vo Huynh Tuan Kiet, Associate Director of CBRE Vietnam'sHousing Project Marketing, said at the end of 2023, real estatecompanies had many policies on reducing selling prices, with a condition thatbuyers must implement faster payment to receive the house. This was a businessstrategy and the decreasing trend was only for some projects in HCM City.

In the secondary market, the selling price of condominiums in Hanoiand HCM City went on opposite trends, according to the CBRE Vietnam's report onHanoi real estate market in the fourth quarter of 2023, released on January 9.

Secondary prices in Hanoi in the fourth quarter of 2023 continuedto increase from the previous quarter, reaching around 33 million VND per sq.m,up 5% year on year. Limited new supply, while newly launched projects settinghigh prices contributed to boosting the demand in the secondary condominiummarket in Hanoi. 
In contrast, secondary prices in HCM City recorded 45 million VNDper sq.m for the condominium market and 140 million VND per sq.m for the landedproperty market on average, down 5% and 2% year on year, respectively. 

During 2023, the secondary market in HCM City went through several priceadjustments, yet the price fall gradually slowed towards the last quarter.
"Continuing this momentum, in 2024 we also expect that theoverall price level in the housing market in Hanoi and HCM City will tend to bestable. Especially, the apartment housing segment in Hanoi will continue theincrease in prices in 2024," Nguyen Hoai An, Senior Director, HanoiBranch, CBRE Vietnam, said.
According to experts, reducing the selling price of commercialproperty is still a difficult issue due to the small number of approvedprojects, development of project for a long time, and increase in constructioncosts and prices of building materials.

Le Dinh Chung, General Director of SGO Homes, said it was difficult toreduce the prices of the commercial products. The State was promoting thedevelopment of social and affordable housing projects, but it was difficult tofind land funds for development of those products.

Many experts believe that housing prices can only decrease if the marketincreases supply. If social housing projects or mid-range price houses enterthe market, the housing prices could be more stable.

At present, the policies supporting social housing development, from land taxesto loan incentive packages, are available and those are expected to havepositive effects on the property market in 2024.

In particular, the draft amended Land Law has basically been completed and willbe submitted to the National Assembly for approval at an extraordinary meetingnext week.

When this law is passed, many projects with legal obstacles will have theopportunity to have these removed, so they can continue to develop, creatingsupply for the market. 

With these factors, the real estate market in 2024 is expected toenter a new cycle with more stability and sustainable growth.
According to the CBRE's report, in 2023, the residential market inboth Hanoi and HCM City experienced the lowest new supply in the past tenyears.

Specifically, in Hanoi, nearly 10,300 condominiums and 2,600 landed propertyunits were newly launched in 2023, representing a decrease of 32% and 84%,respectively, compared to 2022.

In HCM City, there was a more modest new supply with nearly 8,700 condominiumsand only 30 new landed property units launched, indicating a decline of 54% and98%, respectively, compared to 2022.

However, there was an improvement in the number of newly launched units in thelatter half of 2023 compared to the first half, particularly a significantincrease of over 60% in the Hanoi condominium market and an 11% increase in HCMCity.

Mega-urban projects in the West and East of Hanoi and in the East of HCM Citycontinued to dominate the market with the highest share of new supply in bothcities, contributing more than 60% of new supply in Hanoi and nearly 80% of newsupply in HCM City.

In terms of absorption rate, Hanoi and HCM City recorded more than22,000 residential units sold (including both condominiums and landedproperties) in 2023, but representing only half of the units sold in 2022.

However, there was an improvement in the absorption rate in thesecond half of 2023, thanks to the proactive efforts of developers. Theseefforts included implementing preferential sales policies such as extendedpayment schedules and offering discounts of up to 40% for early payment.

Additionally, positive macro factors such as declining interestrates have contributed to an improved sentiment among home buyers. As a result,the number of residential units sold in the last two quarters of the yearhelped increase the sold units by more than 60% in Hanoi and doubled in HCMCity compared to the first half of the year./.
VNA

See more

The Lumitel brand is being promoted on walls across Burundi. (Photo: Viettel)

Lumitel – A bright spot in Vietnam-Burundi collaboration

After a decade of operations, Lumitel has become the leading telecommunications provider in Burundi and one of the largest contributors to the Burundian government's budget, providing stable employment for over 60,000 workers and indirectly creating around 100,000 jobs.

Belarusian Deputy Prime Minister Anatoly Sivak speaks at the forum. (Photo: VNA)

Ample room remains for Vietnam - Belarus trade cooperation

To further develop the Vietnam-Belarus economic and trade relationship, it is essential to enhance trade promotion and investment initiatives such as trade fairs, forums, thematic workshops, and trade connections, which serve as an important bridge for businesses from both sides to meet, connect, and seek cooperation opportunities.

The 5th Exhibition of Ho Chi Minh City and Friendship Provinces and Cities in Savannakhet takes place from April 2 to 6. (Photo: VNA)

Vietnam, Laos boost trade at Savannakhet expo

Vice Governor of Savannakhet Saensak Soulisak highlighted the exhibition’s role in expanding trade collaboration, enabling businesses to connect, share experience, and explore investment prospects. He also noted its significance in promoting local products to a wider market.

Visitors at the exhibition (Photo: VNA)

Vietnam Expo 2025 opens, spotlighting digital transformation, innovation

This year’s edition, themed “Step together in a digitised world,” has attracted around 400 businesses from 18 countries and territories, with over 500 booths. Alongside traditional networking, it introduces online business-to-business (B2B) matching, enabling year-round connections.

Prime Minister Pham Minh Chinh speaks at the second meeting of the National Steering Committee for building the private economic sector development project (Photo: VNA)

Private sector encouraged to join major national programmes, projects

It must fully unleash the productive capacity and resources of the country through the private sector; mobilise all private resources for national development; harness the effectiveness of internal forces, including human, natural resources, history, and culture, while effectively combining them with external resources such as capital, technology, human resources, and management experience, he said.

At the annual Vietnam-Cambodia business dialogue in Phnom Penh on April 4 (Photo: VNA)

Annual Vietnam-Cambodia business dialogue held in Cambodia

The annual business dialogue in Cambodia attracted around 150 delegates, including Vietnamese businesses and Vietnamese-origin companies operating in Cambodia across various sectors such as finance, banking, insurance, telecommunications, agriculture, construction, interior design, food services, transportation, logistics, trade, healthcare, and tourism.

Rice is one of Vietnam's exports to Cuba. (Photo: VNA)

Vietnam-Cuba Business Forum held in Hanoi

Addressing the event, Cuban Ambassador Rogelio Polanco Fuentes affirmed that Cuba will always stand alongside the Vietnamese Government and business community in their efforts to achieve the challenging target socio-economic goals.

The private sector is expected to make breakthroughs for national development. (Photo: VNA)

Party official anticipates breakthroughs in private economic sector

With the Politburo set to issue a dedicated resolution on the private economic sector, there should be a reformed approach to action plans, according to Secretary of the Party Central Committee and head of Head of its Commission for Policies and Strategies Tran Luu Quang.

NCSoft and VNGGames sign a cooperation agreement to develop products in Southeast Asia. (Photo: VNG)

More RoK’s game developers target Vietnam

Over half of Vietnam's nearly 100 million population being gamers and the country's competitive labour costs are among reasons for Korean gaming firms' expanding presence in Vietnam.

Representatives from the Vietnamese Embassy in the UK, LHR leaders, airline partners, and passengers at the anniversary event (Photo: VNA)

Vietnam Airlines marks 10 years of UK route operations

Vietnam Airlines launched its direct UK route in 2011, initially operating from London Gatwick Airport (LGW) before transitioning to Heathrow in 2015, improving connectivity to one of the UK’s major international hubs./.