Apartments under 25 million VND/m2 are almost “extinct”

Supply of commercial housing has not been improved

The Ministry of Construction’s report on information disclosure on housing and real estate market in the first quarter of 2022 said that the supply of commercial housing in the first quarter of 2022 has not improved.

Statistics show that in the first 3 months of the year, only 22 projects with 5,217 apartments were completed. The number of completed projects is about 47% compared to the fourth quarter of 2021 and about 54% compared to the same period in 2021.

Housing supply is expected to improve when there are 1,216 projects with 332,387 units under construction, the number of projects is about 116% compared to the fourth quarter of 2021. Besides, there are 39 projects with 18,660 newly licensed apartments.

“The number of newly licensed projects is only about 41%, of which the number of apartments in projects is about 49% compared to the same period in 2021”, the Ministry of Construction said.

If you want to buy a cheap house, you have to be far from the center

Regarding housing prices, the report of the Ministry of Construction said that commercial housing projects in the central areas of urban areas have almost no apartments with prices below 25 million VND/m2.

Apartments in this price range are only available in a few projects in remote areas such as districts such as: In Hanoi, Anland Premium project Duong Noi, Hanoi costs 30 million VND/m2, One 18 Ngoc Lam costs 26 million VND/m2, Eurowindow River Park costs about 25 million VND/m2; In Ho Chi Minh City, it is relatively rare for projects costing less than 30 million VND/m2; In Da Nang, The Ori Garden project (Lien Chieu District) costs about 21 million VND/m2.

According to the Ministry of Construction, commercial housing projects in the central areas of urban areas have almost no apartments with prices below 25 million VND/m2 (Illustration image – Photo: Thanh Dat).

Meanwhile, mid-end apartments (priced at about 30 million – less than 50 million VND/m2) are still the main products in the apartment market in the first quarter. Projects such as: In Hanoi, the Sunshine Garden project (Hai Ba Trung) costs about 37.1 million VND/m2, Hapulico Complex (Thanh Xuan) costs about 33.8 million VND/m2, Sunshine City (Bac Tu Liem) has a price about 41.8 million VND/m2. In the city. In Ho Chi Minh City, An Gia Skyline project (District 7) costs about 38.6 million VND/m2, Happy Valley (District 7) costs about 47.6 million VND/m2. In Da Nang, the Wyndham Soleil Danang project (Son Tra District) costs about 33 million VND/m2….

With the high-end segment, there are projects with a price of several hundred million/m2, such as: Empire City – The Monarch project in Thu Thiem Urban Area, priced at about 200 million VND/m2, The Filmore Da Nang project in District Hai Chau, City. Da Nang costs about 110 million VND/m2…

“Apartment prices in all localities tend to increase, the average increase rate is about 3% compared to the end of 2021. In Hanoi, apartment prices increased by 4-5% higher than in Hanoi. Ho Chi Minh City will increase by 1-2% compared to the end of 2021”, said the Ministry of Construction.

Similarly, the market of individual housing and land plots also continued to increase in price in the first quarter. According to the Ministry of Construction, the price of individual houses and land plots increased at a higher rate than that of apartments (on average. army increased by about 5-10% compared to the previous quarter).

Towards the end of March 2022, in some localities, areas around Hanoi, Ho Chi Minh City, in the provinces of Thai Binh, Lam Dong, Khanh Hoa, Da Nang, Dong Nai… there was price and transaction volume phenomenon. land plots increased rapidly, in some places the price increased by 15-20% compared to the end of 2021.

Expected debt for real estate business is nearly 800,000 billion VND

By the end of the first quarter, the loan for real estate business is nearly 800,000 billion dong

The Ministry of Construction cited the State Bank’s report that as of March 31, 2022, the outstanding credit balance for real estate business reached VND 783,942 billion.

Notably, the outstanding credit balance for investment projects on construction of urban areas and housing development projects reached VND 188,105 billion (accounting for 24% of total outstanding loans); Outstanding credit for loans to buy land use rights reached VND 101,071 billion (accounting for 12.9% of total outstanding loans).

* Invite readers to watch programs broadcast by Vietnam Television on TV Online and VTVGo!