According to a report released by CBRE Vietnam on July 9, 2024, the supply of residential real estate in Hanoi and Ho Chi Minh City showed contrasting trends in the first half of 2024, especially in the apartment market.
Apartment supply in Ho Chi Minh City is quite scarce. Illustrative image
In Hanoi, new supply released in the second quarter of 2024 increased nearly fourfold compared to the previous quarter, reaching approximately 8,500 units.
Meanwhile, in Ho Chi Minh City, after only 500 new apartments were released in the first quarter, the market recorded an additional 1,200 new units for sale in the second quarter, located in the eastern and southern districts of the city. Most of the apartments sold in the first half of the year were from older projects offering new phases.
Notably, CBRE’s report assessed that, driven by abundant new supply, Hanoi’s apartment market witnessed a significant increase in purchasing power, with the number of units sold in the first half of 2024 surpassing the total recorded for the entire year of 2023.
In the second quarter of 2024 alone, the number of units sold reached 10,170, five times the number sold in the previous quarter and the same period last year. Notably, some projects with a large number of units for sale (1,000 – 2,000 units) recorded a sales rate of 80 – 90% during the launch.
In Ho Chi Minh City, with limited new apartment supply in the first half of 2024 (only 40% of the same period last year), the number of units sold in the first six months reached 80% of the same period last year, with over 1,700 apartments sold.
A mid-range project in the city’s southern district was launched at an average price of VND 53 million per square meter (excluding VAT, maintenance fees, and promotions), 16% lower than the Ho Chi Minh City market average, and recorded sales of over 90% on the launch day.
In the city’s eastern district, a luxury apartment project recorded the sale of all remaining units in the final phase at an average price of VND 170 million per square meter on the launch day, and a high-end project bordering the luxury segment also recorded sales of over 70% of the released units at an average price of approximately VND 130 million per square meter (excluding VAT, maintenance fees, and promotions).
CBRE assessed that Hanoi’s apartment prices are gradually catching up with Ho Chi Minh City’s in both the primary and secondary markets.
In the primary market, Hanoi’s average apartment selling price reached approximately VND 60 million per square meter (excluding VAT and maintenance fees), only VND 3 million lower than Ho Chi Minh City’s current average. Compared to the previous quarter, prices increased by 6.5% quarter-on-quarter and nearly 25% year-on-year.
The new supply in the high-end segment still accounts for a large proportion. In addition, the completed and delivered stock in the past 1-2 years has only reached about 15,000 – 20,000 units, not really abundant compared to the 2019 – 2020 period when the completed and delivered stock reached 30,000 – 40,000 units per year, while housing demand continues to rise, also contributing to the increase in primary selling prices.
CBRE forecasts that from now until the end of 2024, the new supply of apartments in Hanoi will continue to increase, with more than 9,000 new units for sale, bringing the total new supply for the full year of 2024 to nearly 20,000 units. This will be the highest new apartment supply in Hanoi in the past five years since 2020.
With the continued increase in new primary supply, the upward trend in secondary market prices is expected to slow down, with prices at the end of 2024 expected to increase by about 22% year-on-year.
In Ho Chi Minh City, with more than 8,000 new apartments expected to be released in 2024, primary apartment prices are forecast to increase by about 5% year-on-year, narrowing the price gap between Hanoi and Ho Chi Minh City.
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