House prices are high compared to people’s income, apartments under 30 million VND/m2 are about to become extinct?
One of the problems of the current real estate market is house price Housing increased compared to people’s income, a new report released by the Ministry of Construction said.
According to the Ministry of Construction, apartment prices in all localities tend to increase with an average growth rate of about 3% compared to the end of 2021. In Hanoi, apartment prices increase by about 4-5% , the increase is higher than that of Ho Chi Minh City (currently increasing at about 1-2%).
As noted, in big cities, there are almost no apartments under 25 million VND/m2. If so, there are only a few projects left in the districts far from the center.
In Hanoi, suburban apartments have the lowest price of 25 million VND/m2, such as Anland Premium Duong Noi project (Ha Dong District) costing 30 million VND/m2, One 18 Ngoc Lam (Long Bien) costing 26 million VND/m2. m2, Eurowindow River Park (Dong Anh) costs about 25 million VND/m2.
Eurowindow River Park project. Photo: Eurowindow Holding.
In Da Nang, The Ori Garden project (Lien Chieu District) costs about 21 million VND/m2.
In Ho Chi Minh City, projects priced below 30 million VND/m2 are relatively rare.
The level of “extinction” is climbing up the price ladder. About a year ago, at the Seminar on Real Estate Market Prospects 2021, Dr. Su Ngoc Khuong – Senior Director, Investment Department of Savills Vietnam – once commented: “Apartments priced at 20 million VND/m2 belong to history.
Even in Ho Chi Minh City, experts at the seminar said that the apartment of 40 million VND/m2 was about to be “extinct”.
The extinction of the common house, according to Dr. Khuong, there are many reasons such as cost of pushing, i.e. input costs due to prolonged project duration due to legal procedures, lack of real high-end real estate developers in the market, and long-term A giant in another field of real estate suddenly “was a piece of land a few hectares”, sold it, “run away”.
In the context of rising prices, the number of eligible apartments for sale in the first quarter of 2022 was only 56 projects with 10,357 units notified in writing by the Departments of Construction of being eligible to sell houses formed in the future, by about 33.4% compared to the fourth quarter of 2021, according to the report of the Ministry of Construction.
Another problem of the market real estate is the lack of supply in the segments, the Ministry of Construction said. The number of commercial and social housing projects licensed to build, complete and put into use is limited and tends to decrease.
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