Real Estate Market Overview: Increase in Transactions and Prices
The Ministry of Construction’s report indicates that the number of land transactions in the first quarter of 2024 reached 97,659 successful transactions. According to the Ministry, transactions in the three segments of land, condominiums, and detached houses have increased compared to the fourth quarter of 2023 (in the fourth quarter of 2023, there were 27,590 transactions for detached houses and condominiums, and 81,476 land transactions).
Accordingly, the number of condominium and detached house transactions was 129.95% compared to the fourth quarter of 2023, and 81.51% compared to the same period in 2023; the number of land transactions was 119.86% compared to the fourth quarter of 2023 and 145.18% compared to the same period in 2023.
In Ho Chi Minh City alone, in the first quarter of 2024, on the secondary market, the selling price of condominiums has shown an upward trend compared to the previous quarter, with significant increases in some districts such as District 7, Tan Phu, Tan Binh, Phu Nhuan. Some projects have seen high average price increases in the first quarter of 2024. Notably, Thu Thiem Green House project (District 2) has a selling price ranging from 25.5 – 30 million VND/m2; Happy City project (Binh Chanh district) selling price ranges from 23 – 27 million VND/m2;
My Phuoc project (District 7) selling price ranges from 39.3 – 52.8 million VND/m2; Green River apartment project (District 8) selling price ranges from 37.5 – 42.4 million VND/m2; Carillon Apartment project (Tan Binh district) selling price ranges from 45.3 – 53.3 million VND/m2; Garden Gate project (Phu Nhuan district) selling price ranges from 58.8 – 69.5 million VND/m2…
For detached houses, villas, townhouses, and land in projects, according to the Ministry of Construction in the first quarter of 2024, the demand for searching for detached houses and land has increased compared to the previous quarter and compared to the same period last year. In some areas, after the Tet holiday, selling prices have increased slightly and transactions have been quite active. However, the organization of land auctions in new urban and residential areas has been carried out more by localities compared to the same period in 2023. This is also considered a factor that can help the land market become more active in the near future.
In Ho Chi Minh City, the selling prices of detached houses, villas, townhouses, and land of some projects are as follows: Thanh My Loi Villas project, District 2, selling price around 160 -180 million VND/m2; Phu My Hung project, Tan Phong ward, District 7 selling price around 200- 220 million VND/m2; Nam Vien project, Road 17, Tan Phu Ward, District 7, Ho Chi Minh City, selling price around 250 – 280 million VND/m2; Vinhomes Central Park project, Dien Bien Phu Street, Ward 22, Binh Thanh, Ho Chi Minh City, selling price around 400 – 450 million VND/m2;
The selling prices of detached houses, villas, townhouses, and land of some projects have increased significantly in recent quarters, such as: Citi Bella 2 project (District 2) increased by about 4.3% (up to 88.2 million VND/m2); My Thai 3 project (District 7) increased by about 4.2% (up to 194.9 million VND/m2); Ha Do Villas project (District 10) increased by about 4.2% (up to 304.9 million VND/m2); …
According to most experts in the industry, from the third quarter of 2024 onwards, real estate will enter a trading cycle and prices will show signs of increasing. In a recent forum, Ms. Trang Bui – General Director of Cushman & Wakefield emphasized that market demand will increase significantly from the third quarter of 2024 onwards. After a period of compression, this is a period when demand will accelerate again due to many positive factors supporting the market. However, demand may not be as strong as it was before Covid-19.
Dr. Dinh The Hien, a financial expert, shares the same view, stating that the time for buyers to “bet” on the real estate market is from the third quarter of 2024 onwards. From this point on, the recovery of the real estate market will be evident. Investment funds will begin to take interest in real estate companies.
According to Dr. Hien, private investors’ money has already started flowing back into the real estate market. The disbursement from these investors will be strongest in the third and fourth quarters of 2024. At the same time, public investment disbursement will also accelerate from the third quarter of this year onwards.
“The liquidity of the real estate market in Ho Chi Minh City and neighboring areas will recover the soonest this year. Among which, real estate for actual use and exploiting cash flow will ‘bounce back’ first. Land in neighboring provinces bought for price speculation will not recover in 2024,” emphasized Dr. Dinh The Hien.
