Price of condominiums in various provinces?
Dat Xanh Services (DXS – FERI), a research institute on Economics, Finance, and Real Estate, recently pointed out that in the first month of 2024, the prices of primary real estate products maintained a stable trend after a 3-7% increase at the end of 2023.
In particular, the new supply in Hanoi and neighboring provinces such as Hung Yen, Bac Ninh, Bac Giang, and Quang Ninh decreased by 50% compared to the previous month. The absorption rate on the total primary supply reached 35 – 40%.
In terms of selling prices, apartments ranged from 20 – 60 million VND/m2; townhouses increased by 2 – 3% per month, ranging from 38 – 171 million VND/m2; villas ranged from 27 – 194 million VND/m2; shophouses increased by 2 – 3% per month, ranging from 36 – 200 million VND/m2; land prices ranged from 17 – 60 million VND/m2.
Apartments in Hanoi and neighboring provinces such as Hung Yen, Bac Ninh, Bac Giang, and Quang Ninh ranged from 20 – 60 million VND/m2. (Photo: Lap Dong)
In the Central region, including provinces such as Da Nang, Khanh Hoa, Binh Dinh, Quang Nam, and Phu Yen, there was no new supply in January. The absorption rate on the total primary supply was 5 – 10%.
Apartments ranged from 26 – 100 million VND/m2, townhouses increased by 3 – 5% compared to the previous month, ranging from 38 – 120 million VND/m2. Villas had a stable price trend, ranging from 45 – 200 million VND/m2. Shophouses increased by 2 – 3%, ranging from 45 – 220 million VND/m2. Land prices in this area ranged from 13 – 52 million VND/m2.
In Ho Chi Minh City and neighboring provinces including Binh Duong, Dong Nai, and Long An, there were about 800 new products in the first month of 2024, a 90% increase compared to the previous month. The overall absorption rate in the market was 20 – 25%.
The secondary market has stabilized and only the types of townhouses and apartments have seen significant transactions. (Photo: Lap Dong)
All segments have had a stable price trend. In particular, apartments ranged from 27 – 80 million VND/m2, townhouses ranged from 25 – 91 million VND/m2, villas ranged from 60 – 120 million VND/m2, shophouses ranged from 30 – 143 million VND/m2, and land prices ranged from 15 – 55 million VND/m2.
In the Western provinces including Can Tho, An Giang, Hau Giang, Vinh Long, and Bac Lieu, the prices of real estate have remained stable in the month. Specifically, apartments ranged from 30 – 65 million VND/m2, townhouses ranged from 22 – 47 million VND/m2, shophouses ranged from 25 – 43 million VND/m2, and land prices ranged from 11 – 32 million VND/m2. The absorption rate on the total primary supply was 5 – 7%.
DXS – FERI forecasts that the secondary market prices of real estate in January 2024 have not fluctuated much. The secondary market has stabilized and only the types of townhouses and apartments have seen significant transactions.
Lower prices for condotels
According to DKRA, in 2023, the condotel segment in Da Nang and the Central region recorded a significant decrease in primary supply, only reaching 61% compared to the same period, mainly due to the inventory of old projects that had been launched earlier.
The market demand is low, with the lowest consumption in the past 10 years, at only 3% compared to 2022. Most transactions focus on products with selling prices ranging from 3 – 4 billion VND/unit.
The suspension of projects due to legal issues, lack of capital from businesses, and a challenging overall market have negatively affected investor sentiment, leading to a continuous decline in market liquidity from the middle of the second quarter of 2022 until now.
The suspension of projects due to legal issues, lack of capital from businesses, and a challenging overall market have negatively affected investor sentiment. (Illustrative photo)
Sharing with Tien Phong, a real estate broker in Da Nang said that the reason why condotel prices in the city are high is that from a fishing village by the Han River, the city has become one of the most valuable and livable cities in the world. As a result, the number of international tourists coming here for tourism and living has been increasing.
Thanks to this, the market for renting condotels and high-end apartments for foreigners, especially Koreans and Japanese, has been vibrant, with rents ranging from 20 – 25 million VND/month. Therefore, it is understandable that apartments with prices in the hundreds of millions of VND/m2.
“Before COVID-19, there was a wave of investment in apartments in coastal provinces in the Central region such as Da Nang, Phu Yen, Quang Nam, which caused apartment prices to continuously increase. Many people explained that buying these apartments serves their family’s vacation needs when they have time, and when things return to normal, they will rent them out to foreign guests, so profits will not go anywhere but remain”, the broker said.
However, when COVID-19 appeared, the market for renting condotels and apartments dropped, resulting in a decrease in selling prices but still remained relatively high.
The market for renting condotels has dropped, resulting in a decrease in selling prices but still remained relatively high. (Illustrative photo)
Based on real surveys, currently, some apartment projects in Hai Chau District (Da Nang) fluctuate around 110 – 130 million VND/m2, while apartments in other areas such as Son Tra, Ngu Hanh Son have prices ranging from 50 – 70 million VND/m2. In discussions with a journalist, a broker said that despite continuous listings, there were very few calls for price inquiries since the high prices did not attract customers.
According to many experts, brokers, and investors, the real estate market at the current time no longer follows cyclic fluctuations as previously forecasted. Instead, it is undergoing targeted purification to achieve long-term stability. Therefore, professional investors are focusing on observing, evaluating, and correctly understanding the nature of the issues after witnessing the strong participation of the Government in recent times…
