Apartment Prices Rise, But Liquidity Falls
Over the past period, apartment prices in Hanoi have been on a continuous upward trend. Conversely, liquidity has shown a declining trend, particularly in the secondary market.
According to a report by the Ministry of Construction, in the last quarter, the primary selling price of apartments in Hanoi surged, reaching an average of 95 million VND per square meter. Notably, over 43% of new supply was priced above 120 million VND per square meter. This sharp increase in primary prices has driven up the overall market average.
In Ho Chi Minh City, apartment prices continued to rise, primarily in the mid-range and high-end segments. The average primary selling price reached 91 million VND per square meter, with some units in central areas averaging between 120 and 150 million VND per square meter.
However, apartment transaction volumes have been on the decline. Specifically, in the last quarter, there were 32,114 successful transactions for apartments and individual houses, a 7% drop compared to the previous quarter and a 17% decrease year-over-year.
Surveys indicate that many apartments in Hanoi, despite being listed for sale for extended periods, remain unsold.
For instance, a 62-square-meter apartment in Tay Mo Ward (Hanoi) was listed at 6.5 billion VND, equivalent to over 100 million VND per square meter. Compared to two months prior, the price has not increased significantly. Real estate agents note that despite being listed for a long time, the owner has not reduced the price. The owner is only willing to sell at the listed price.
Another example is a 78-square-meter apartment in Cau Giay Ward, which was listed three months ago at 9.5 billion VND, equivalent to nearly 122 million VND per square meter. Despite still being unsold, the owner has maintained this price.
Mr. Thanh Tung, owner of a real estate brokerage in Hanoi, stated that over the past two years, apartment prices have been on a steep rise. Earlier this year, the rate of increase slowed, but many owners still expect prices to continue rising, so they maintain high listing prices. However, recently, secondary apartment transactions have stagnated, primarily due to prices being too high for real buyers to afford.
“The demand for housing among residents remains very high. However, due to the high prices, they are temporarily holding off on purchases, waiting for further market signals or new social housing supply,” he shared.
Apartments Hard to Sell Due to High Prices
Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokerage Association (VARS), stated that recently, liquidity in the secondary apartment market in Hanoi has slowed compared to earlier this year, primarily due to high prices. Specifically, for primary apartments, many costs have risen sharply, and the new supply is mainly in the luxury segment, so there are no affordable options. In the last quarter, new apartments priced below 60 million VND per square meter were almost non-existent.
As for the secondary apartment segment, it is being influenced by speculators driving up prices, so despite high prices, they continue to rise. With current apartment prices, real buyers find it very difficult to afford. This is evident in the sharp decline in apartment liquidity in the first half of the year. Additionally, reduced liquidity is also due to residents adopting a wait-and-see approach, monitoring market signals.
“Current apartment prices have reached their ceiling, making it very difficult to surge as in previous periods. However, if apartment prices remain at this level, liquidity may continue to be affected,” he said.
Sharing the same view, Mr. Pham Duc Toan, a real estate expert, stated that apartment liquidity is affected by two main factors. First, current prices are too high, making it unaffordable for real buyers. Second, buyers are adopting a wait-and-see attitude for further market signals.
According to him, the real demand in Hanoi remains high, but supply and demand are struggling to meet. This is because real buyers need reasonably priced apartments, but there is no supply. Meanwhile, the current market supply is concentrated in the high-end segment.
He believes that in the current context of high apartment prices, only those who truly need to buy immediately should make a purchase. Those who are not in a hurry can wait 1-2 years. By then, the supply of social housing will be more abundant, making it easier to access.
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