Vietnam Real Estate Market Sees Price Surge and High Absorption in Q1 2024

FIRST QUARTER 2024 REAL ESTATE MARKET REPORT: INCREASED DEMAND AND RISING PRICES

The Ministry of Construction has released its first quarter 2024 report on the housing and real estate market, indicating a notable rise in demand for individual houses and land plots compared to both the previous quarter and the same period last year.

PRICE SURGE IN MAJOR CITIES
In Hanoi, real estate prices are projected to increase by approximately 5% to 15% compared to the end of 2023, with selling prices ranging from 80 million VND to 220 million VND per square meter. Similarly, in Ho Chi Minh City, prices range from 90 million VND to 250 million VND per square meter.

Specific price trends have been observed in key Hanoi projects. The Geleximco Le Trong Tan project in Duong Noi ward, Ha Dong district, is priced at 100 125 million VND per square meter. The Nam Trung Yen Urban Area in Cau Giay district saw a 5.7% increase, reaching 366.1 million VND per square meter. The Starlake Hanoi project in Tay Ho district rose by 4.6% to 375.5 million VND per square meter, while the Vinhomes Green Villas in Nam Tu Liem district increased by 3.3% to 208.6 million VND per square meter. The Viet Hung Urban Area in Long Bien district recorded a 4.1% rise, bringing prices to 165.2 million VND per square meter.

SUPPLY FORECAST FOR HANOI
It is estimated that by the end of 2024, Hanoi will see an additional supply of 2,977 villas and townhouses from 13 new projects entering the market. Dong Anh district is expected to contribute the largest share at 34%, followed by Ha Dong at 19% and Hoai Duc at 16%.

Market research organizations report that in the first quarter of 2024, the new supply of villas and townhouses increased by 7% quarterly and 221% annually. The primary supply reached 665 units from 16 projects, reflecting a 6% quarterly and 12% annual decline, with villas dominating 41% of the primary supply.

HO CHI MINH CITY MARKET TRENDS
In Ho Chi Minh City, notable projects include the Thanh My Loi Villas in District 2, priced at 160 180 million VND per square meter, and the Phu My Hung project in Tan Phong Ward, District 7, ranging from 200 220 million VND per square meter. The Nam Vien project on Street 17, Tan Phu Ward, District 7, is listed at 250 280 million VND per square meter, while the Vinhomes Central Park project on Dien Bien Phu Street, Ward 22, Binh Thanh district, commands prices of 400 450 million VND per square meter.

Several projects in Ho Chi Minh City experienced price increases in the first quarter. The Citi Bella 2 project in District 2 rose by 4.3% to 88.2 million VND per square meter, while the My Thai 3 project in District 7 increased by 4.2% to 194.9 million VND per square meter. The Ha Do Villas project in District 10 also saw a 4.2% rise, reaching 304.9 million VND per square meter.

Despite these price adjustments, the villa and townhouse market in Ho Chi Minh City showed limited operational improvements. The absorption rate remained low at 20 30%, with no significant change from the previous quarter.

REGIONAL MARKET UPDATES
In Hai Phong, villa and townhouse prices range from 60 65 million VND per square meter, with properties valued under 5 billion VND seeing a 3 5% increase compared to the end of 2023.

Ha Nam’s market has shown positive signs, particularly in land transactions, where plots are priced at approximately 2 billion VND each. This growth is attributed to newly approved planning, strategic locations adjacent to Hanoi, and substantial infrastructure investments.

Meanwhile, Hai Duong’s real estate market is thriving, with numerous new projects and an absorption rate reaching 100%. Projects with secured legal status, completed infrastructure, and amenities have seen price increases of up to 40% compared to the same period last year.

POST LUNAR NEW YEAR MARKET ACTIVITY
Following the Lunar New Year holiday, some areas experienced slight price increases and heightened transaction activity. Localities have also intensified land auctions in urban and new residential areas compared to the same period in 2023, a trend expected to invigorate the land market in the coming months.