In 2024, Hanoi apartment prices will increase by 50% but it is not yet the 'peak price'

(CLO) The Ministry of Construction believes that in 2024, apartment prices in some major cities will continue to increase. In Hanoi, apartment prices will increase by 40-50% compared to 2023, with some projects increasing at a higher rate.

In the 2024 real estate market report, the Ministry of Construction said that in large cities, apartment prices increased much higher than in 2023, a new price level was established for all segments. Specifically, the affordable segment, which previously cost less than 30 million VND/m2, has now increased to 45 million VND/m2.

The mid-range segment, which previously had a selling price of 30 - 45 million VND/m2, has now increased to 45 - 70 million VND/m2. Similarly, the high-end segment, which previously had a price of 50 - 70 million VND/m2, has now increased to 70 - 100 million VND/m2. The super luxury segment has appeared on the market in a few projects with a selling price of 200 million VND/m2.

The Ministry of Construction believes that in 2024, apartment prices in some major cities will continue to increase. In Hanoi , apartment prices will increase by 40-50% compared to 2023 prices, with some projects increasing at higher rates.

In 2024, Hanoi apartment prices will increase by 50% but it is not yet the 'peak'. (Photo: DT)

Apartment projects in Hanoi have increased in price compared to before. In particular, apartments such as: Ecolife Tay Ho with a selling price of about 72 million VND/m2, Sunshine Garden with a selling price of about 54 million VND/m2, Chelsea Park - Cau Giay with a selling price of about 62 million VND/m2, Trang An Complex with a selling price of about 70 million VND/m2, Legend Tower with a selling price of about 72 million VND/m2.

Meanwhile, in Ho Chi Minh City, apartment prices in 2024 will increase by about 20-30% compared to 2023. Accordingly, The Horizon Phu My Hung project will have a selling price of about 125 million VND/m2, The Ascent will have a selling price of about 64 million VND/m2, Lu Gia Plaza will have a selling price of about 46 million VND/m2, Osimi Tower will have a selling price of about 41 million VND/m2, Stown Tham Luong will have a price ranging from 29-44 million VND/m2.

Similarly, the selling price of apartments in 2024 in Da Nang City increased by about 20% compared to 2023. Of which, Sam Towers apartments cost from 80-100 million VND/m2, Peninsula costs from 53.5 million VND/m2, The Filmore costs from 100 million VND/m2.

Most opinions agree that apartment prices in Vietnam in general and in Hanoi in particular will be difficult to decrease, the current price is not yet the "peak".

According to the forecast of Associate Professor, Dr. Dinh Trong Thinh, economic expert, in the coming time, apartment prices will hardly decrease, however, the price increase up to this point has somewhat slowed down, following a more stable trend, no longer in a feverish state as happened many months before.

Mr. Thinh added that the primary supply has increased, the scarcity has been somewhat overcome, but mainly in the high-end, luxury segment of over 100 million VND/m2, but through market observation and synthesis from reports, it can be seen that the new supply is also absorbed quickly. The "softest" price is currently at 60 - 70 million VND/m2 in some newly restarted projects, in areas that were previously less noticed.

Mr. Ngo Huu Truong, Deputy General Director of Hung Thinh Corporation in Vietnam, analyzed that in the past 3 years, some of the main factors leading to the increase in real estate prices are: Firstly, the time for completing legal procedures is long, accordingly, the project approval process in Vietnam often takes a long time, from site clearance to completing legal procedures. This increases investment costs, thereby pushing up real estate prices.

Second, according to current regulations, land auctions must follow market prices, which also makes the input value of projects higher, leading to increased real estate prices.

Third is the impact of inflation and exchange rates. Although inflation in Vietnam is well controlled, the increase in the price of gold and USD compared to VND has put upward pressure on real estate prices, because many investors use these assets as a basis for accumulating value. Therefore, real estate prices will be very difficult to decrease in the coming period.

Source: https://www.congluan.vn/trong-nam-2024-gia-can-ho-ha-noi-tang-50-nhung-chua-phai-la-dinh-noc-kich-tran-post331833.html