According to the Ministry of Construction’s Q2 2024 real estate market report, there were a total of 150,876 successful real estate transactions, based on data aggregated from 60 out of 63 local Construction Departments.
Of these, there were 25,885 transactions for apartments and detached houses, a decrease of 28% from the previous quarter and 13% from the same period last year. In contrast, the majority of transactions were for land plots, with 124,991 successful deals, marking a 28% increase from the previous quarter and an impressive 86% jump from the same period last year.
In terms of transaction prices, apartment prices in Hanoi and Ho Chi Minh City increased by an average of 5-6.5% in Q2, and by up to 25% year-on-year, depending on the area and location.
The Ministry of Construction noted that this price surge was not limited to new projects but also extended to older apartments that have been in use for many years. However, this trend appears to be short-lived, showing signs of slowing down towards the end of the quarter as prices reached a plateau and buyers adopted a wait-and-see approach.
In Ho Chi Minh City, the upward trend continued in Q2. According to surveys by market research organizations, the asking prices for mid-range apartments, defined as those priced between 35-55 million VND per square meter, increased by 2%, while luxury apartments priced above 55 million VND per square meter saw a 5% year-on-year increase.
Additionally, there was a noticeable upward trend in the asking prices of pre-owned apartment projects, particularly in the inner-city areas. For instance, the City Garden project in Binh Thanh district had an average asking price of 85 million VND per square meter, representing an 18% increase compared to the same period last year. Similarly, the Antonia project in District 7 and Masteri Thao Dien in District 2 witnessed price increases of 11% and 10%, respectively.
Analytical reports suggest that apartment prices in Ho Chi Minh City are likely to continue climbing in the foreseeable future due to the scarcity of new project launches entering the market.
In the secondary market, several projects witnessed notable price increases during the quarter, including Masteri Thao Dien (District 2) with a 6% increase (reaching 77 million VND per square meter), Eco Green Saigon (District 7) with a nearly 7% increase (surpassing 61 million VND per square meter), Jamona Heights (District 7) with a nearly 6% increase (42.6 million VND per square meter), and The Antonia (District 7) with a more than 7% increase (82.6 million VND per square meter).
Turning to Hanoi, several apartment projects also experienced significant price hikes in Q2. For instance, prices in the Royal City urban area increased by 33%, while The Pride and My Dinh Song Da-Sudico saw increases of 33% and 32%, respectively. Even older urban areas like Trung Hoa-Nhan Chinh and the resettlement apartments in Nam Trung Yen saw price increases of 25% and 20%, respectively.
Given the rapid price increases, buyers seeking apartments with slower price growth would need to look towards projects farther from the city center, such as Binh Minh Garden Duc Giang and Le Grand Jardin Sai Dong, where prices still start at a hefty 3 billion VND (ranging from 3.2-4.5 billion VND for 2-3 bedroom apartments).
In the secondary market, several projects witnessed notable price increases, including 249A Thuy Khue (Tay Ho) with a 12% increase (55.8 million VND per square meter), D’. El Dorado II (Tay Ho) with a nearly 10% increase (80.6 million VND per square meter), Vinata Tower (Cau Giay) with a 10% increase (over 53 million VND per square meter), Vinhomes D’Capitale (Cau Giay) with a 14% jump (over 74 million VND per square meter), and Eco Lake View (Hoang Mai) with a 13.5% increase (surpassing 48 million VND per square meter).
Villas and detached houses followed the upward price trend
In Q2, the survey found that selling prices for villas and detached houses within projects tended to increase compared to the previous quarter.
“The heat in the apartment market has also affected the prices of detached houses and villas in projects and residential areas, which tend to increase,” said the Ministry of Construction.
Specifically, several projects in Hanoi witnessed price increases compared to the previous quarter, including Iris Garden (Nam Tu Liem) with a nearly 8% increase (242.7 million VND per square meter), Vinhomes Riverside (Long Bien) with a 9% jump (244.7 million VND per square meter), Rue De Charme (Thanh Tri) with a 9% increase (nearly 260 million VND per square meter), and KDT Co Nhue (Bac Tu Liem) with a nearly 9% increase (reaching 232.5 million VND per square meter).
In Ho Chi Minh City, several projects also experienced price increases compared to the previous quarter, including Precia Riverside (District 2) with a nearly 9% increase (203.8 million VND per square meter), Villa Riviera (District 2) with a nearly 7% increase (385 million VND per square meter), and River Park (District 9) with a more than 6% increase (reaching 111.4 million VND per square meter).
According to the Ministry of Construction, notable new supply sources in Q2/2024 in Hanoi came from projects by Nam Cuong Group, Him Lam Thuong Tin, and The Manor Central Park, offering new investment options in districts/counties farther from the city center.
In Ho Chi Minh City, new supply entered the market from projects such as The Foresta (District 2), spanning 5.77 hectares and providing 159 villas, the high-end townhouse project Bao Anh Residence (District 12) with 31 units, and Conic Boulevard in Binh Chanh district, comprising 114 adjacent houses.
Industrial real estate follows suit
In the first six months of 2024, the industrial real estate market received additional supply from newly approved and commenced projects, including Tien Cuong II industrial cluster with a scale of 50 hectares in Hai Phong, the northeastern industrial cluster of 20 hectares in Thanh Hoa, VSIP Lang Son industrial park with an area of 599.7 hectares, and Ho Son 1 industrial cluster of over 73.7 hectares, also in Lang Son.
In the first half of 2024, the occupancy rate in industrial parks in the North reached over 80%, while the rental rate in the South reached 90%.
In the ready-built factory and warehouse market, the average occupancy rate in the Northern industrial parks was 70% for warehouses and 85% for factories. In the Southern region, these rates were 60% and 85%, respectively.
Land rental prices in industrial parks in the first six months of 2024 increased by 5-8% compared to the same period last year. For ready-built factories and warehouses, rental prices remained stable.
According to the survey, the average rental price in industrial parks currently ranges from 3.5 to 5 USD/m2/month, and the rental price for the whole lease term is about 135-185 USD/m2/lease term.
The stagnation of the resort real estate segment
In Q2, notable new hotel and resort projects entering the market included the 5-star Charmant Suite & Boutique Hotel in Can Tho, the 4-star The HUB by Hotel Academy Vietnam in Ho Chi Minh City, and the Wyndham Garden Sonasea Van Don resort in Quang Ninh. Additionally, several new real estate projects in the hospitality sector were launched during the quarter, expected to add new supply to the market.
Notable project prices in Q2 included Shophouse/villas at the L’Aurora Phu Yen project, with asking prices ranging from 85-130 million VND per square meter, and the Vlasta Sam Son project in Quang Hung, Sam Son, Thanh Hoa, with prices ranging from 70-80 million VND per square meter. Condotel prices at projects like A La Carte Ha Long, with permanent red books, ranged from 45-65 million VND per square meter, while The Song 5-star Plus Vung Tau, with a 50-year lease, had asking prices of about 35-45 million VND per square meter. The Flamingo Cat Ba project in Hai Phong, with red books already available, had asking prices of around 60 million VND per square meter.
The Ministry of Construction assessed that the real estate market for resorts and villas in Q2 remained stagnant and showed no signs of recovery.
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Astonishingly high price for old and dilapidated apartment buildings reaching nearly 200 million VND/m2, rivaling the most luxurious condominiums in Hanoi
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