After the provinces/cities announced the new land price list, real estate prices in the market increased sharply. It can be said that a new price level has been established, higher than the old one.
Land, townhouses, villas, apartments all increase
According to the Ministry of Construction, survey and synthesis of reports from some major provinces and cities such as Hanoi and Ho Chi Minh City, apartment prices in Hanoi continue to increase in both new and old projects. The price level of new projects has increased by about 4 – 6% per quarter and increased by 22 – 25% per year. In particular, some areas have increased locally by about 35 – 40% depending on the location compared to the previous quarter.
Typically, apartments at Sunshine Capital Tay Thang Long apartment building (Tay Ho district) increased by about 3.8% to 221.1 million VND/m2, Louis City (Nam Tu Liem district) increased by about 4.8% to 232.1 million VND/m2, Van Quan urban area (Ha Dong district) increased by about 3.5% to 225.8 million VND/m2, Hoa Vien Villas project (Gia Lam district) increased by about 4.4% to 108.4 million VND/m2… In Ho Chi Minh City, My Phu 3 project (District 7) increased by about 4.4% to 278.9 million VND/m2, Villa Park (Thu Duc city) increased by about 4.6% to 123.8 million VND/m2…
Recently, a real estate investor in Thu Duc City, after selling low-rise houses priced at hundreds of millions of VND per square meter, has continued to sell apartments here at around 100 million VND/m2. The above price is considered more than double the price of apartments in the same area. A nearby project by Gamuda Land also opened for sale at a price of more than 130 million VND/m2. Data from OneHousing Company further reinforces this when in the third quarter of Ho Chi Minh City, the average apartment price of the entire Ho Chi Minh City market continued to increase, reaching more than 80 million VND/m2 (excluding VAT and apartment maintenance costs), an increase of 5% compared to the second quarter of 2024.
Mr. Dang Duc Ben, Director of Hung Loc Phat Real Estate Company, confirmed that in the East of Ho Chi Minh City, especially Thu Duc City, real estate prices, especially land prices , villas, and townhouses, increased by about 10% compared to 2 months ago. Agricultural land alone did not increase because the land use fee (SDĐ) when converting the purpose to residential land was too high, so no one dared to buy at this time. Not only did prices increase, but transactions also increased slightly for about a month now, before Ho Chi Minh City issued an adjusted land price list with a very high increase in land prices compared to before. “Currently, the market has gradually warmed up again, the land use fee when changing the purpose is as high as Lien Phuong Street (Thu Duc City). Previously, the land price in the land price list was only 2.4 million VND/m2, but now it has increased to more than 60 million VND/m2. Because the land price list has increased, those who have idle money go to buy for investment because they expect the land price to increase in the future and they themselves also think that, with the current high land price, when businesses do new projects, the price of finished land will increase, and the current land level will no longer be maintained. That is why they buy more houses and land. Meanwhile, people who own houses and land also think similarly, so when selling, they also ask for an increase in price,” said Mr. Ben.
The price increase for villas and townhouses in Hanoi has also increased sharply recently when a large amount of cash flow from long-term investors and real buyers is still trading strongly. In which, the average secondary selling price of houses attached to land in Hanoi this quarter reached about 160 million VND/m2, up 3% quarter-on-quarter and nearly 7% year-on-year. Some projects in areas such as Dong Anh and Long Bien have a higher secondary price increase, about 5% quarter-on-quarter. The selling price of villas and townhouses in the project tends to continue to increase compared to the previous quarter, most of the newly opened projects in this quarter are in favorable locations, located in areas with strong investment in infrastructure, so the primary asking price is relatively high.
Land price list should be issued according to regulations.
Mr. Bui Xuan Cuong, Vice Chairman of the Ho Chi Minh City People’s Committee, commented: The above figures show that the Ho Chi Minh City real estate market has gradually recovered, from a negative level in 2023 to positive growth from the beginning of 2024. The growth rate is still slow but there are positive signs. Some new projects have been approved for investment and some old projects have been restarted thanks to the removal of difficulties. The increased supply has also made the market less gloomy. In the first 9 months of the year alone, the city had 12 commercial housing projects approved for investment, 2 projects granted construction permits, more than 31,000 commercial apartments under construction, 1,611 apartments formed in the future eligible for capital mobilization, and 3 social housing projects completed, with 2,122 apartments . It is forecasted that in the last 3 months of the year, the market will continue to recover but at a slow pace, with no breakthroughs. Prices may increase slightly in some segments due to the regulation of city land prices when issued, but there will not be strong fluctuations.
New supply will gradually be added, contributing to an increase in transaction volume in the last 3 months of the year. The apartment segment is still considered to have the most potential due to slow supply growth and high demand. New policies on land, housing, real estate business, and credit, effective from August 1, will have a positive impact on the market in the coming time.