Mr. Le Xuan Nga, CEO of BHS Property, stated that there is often a lag when new laws are implemented in practice. In the real estate industry, this lag could last for several years. Therefore, condo prices and market “heat” are expected to persist in the coming period.
“After the new laws take effect, the market will not experience a feverish surge. However, buyers should not expect prices to drop immediately,” he added.
Mr. Nga also attributed the scarcity of supply as the main reason for the high condo prices, which is expected to persist in the 2024-2025 period. He believes that it will take at least three years from the enforcement of the new laws for investors to resolve issues and complete their projects.
Sharing the same viewpoint, Mr. Nguyen Quoc Anh, Deputy CEO of Batdongsan.com.vn, mentioned that condo prices in Hanoi will continue to rise due to the scarce supply. The new Laws on Real Estate Business, Land, and Housing will help remove bottlenecks and boost supply but will need time to take effect in the market. Hence, in the short term, condo prices in Hanoi are unlikely to decrease immediately.
According to Mr. Nguyen Anh Que, a member of the Executive Committee of the Vietnam Real Estate Association and Chairman of the Board of Directors of G6 Group, condo prices within the first and second ring roads will definitely not decrease due to the lack of new supply. New projects are all priced high. As for areas from the third ring road and beyond, it is difficult to see a decrease in prices, except for some localized areas where there are new projects with large supply.
“However, overall, it is challenging for condo prices in Hanoi to go down. If there is any decrease, it will only be localized to a specific area rather than a general trend. For prices to drop, there needs to be a significant macroeconomic event, such as a severe global economic recession that also affects Vietnam. In the current context of high demand and low supply, it is unlikely for prices to decrease,” said Mr. Que.
Mr. Que also commented that the race to sell properties from now until the end of the year will be very exciting, especially in the condo segment. Investors will try to launch their projects as soon as possible as the market is showing positive signs.
In Q2/2024, condo transactions decreased, but prices increased by an average of 5-6.5% from the previous quarter and 25% from the same period last year.
In reality, many people are currently waiting for housing prices to drop but are instead witnessing a continuous rise in property prices, especially for condos.
Specifically, according to the Q2/2024 real estate market report by the Ministry of Construction, based on data from 60/63 provincial Departments of Construction, there were a total of 150,876 successful real estate transactions. Of these, 25,885 were transactions of apartments and separate houses, a decrease of 28% from the previous quarter and 13% from the same period last year. The majority of transactions were in the land plot segment, with 124,991 transactions, an increase of 28% from the previous quarter and 86% from the same period last year.
In terms of transaction prices, condo prices in Hanoi increased by an average of 5-6.5% in Q2. According to the Ministry of Construction, the hot increase in condo prices occurred not only in new projects but also in many old apartments that have been in use for many years. However, this situation only lasted for a short period and showed signs of cooling down towards the end of Q2 due to high prices and buyers’ wait-and-see attitude.
In Hanoi, in Q2, the asking prices of some condo projects saw significant increases, such as Royal City (up 33%), The Pride (up 33%), My Dinh Song Da – Sudico (up 32%), and Vinhomes West Point (up 28%). Even older urban areas like Trung Hoa – Nhan Chinh saw condo prices increase by 25%, and resettlement apartments in Nam Trung Yen increased by 20%…
In the secondary market, some projects with high average price increases include 249A Thuy Khue (Tay Ho) up 12% (VND 55.8 million/sq m); D’. El Dorado II (Tay Ho) up nearly 10% (VND 80.6 million/sq m); Vinata Tower (Cau Giay) up 10% (over VND 53 million/sq m); Vinhomes D’Capitale (Cau Giay) up 14% (over VND 74 million/sq m), Thong Nhat Complex (Thanh Xuan) up 12.5% (nearly VND 60 million/sq m), and Eco Lake View (Hoang Mai) up 13.5% (over VND 48 million/sq m)…
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