The price of new apartments in Hanoi is reaching an average of 59 million VND/m2 – increasing for 5 consecutive years and forecast to be very difficult to decrease in the near future – Photo: Van Duan
This is one of the contents discussed by experts at the seminar “Cash-Home real estate: Apartment segment leading the Hanoi market in 2024” organized by Construction Newspaper on the afternoon of April 24, At Hanoi.
According to reports from market research units, apartments in Hanoi have continuously established new price levels in recent years. As of the first quarter of 2024, new apartment prices have reached an average of 59 million VND/m2, increasing for 5 consecutive years (21 consecutive quarters).
Selling prices in the secondary market of Hanoi apartments in the first quarter recorded the highest annual price increase ever, up 17% over the same period last year and reaching an average of more than 36 million VND/m2.
Economic experts and real estate experts at the discussion
CBRE’s real estate market focus in the first quarter of 2024 noted that in the first 3 months of 2024, new supply in Hanoi focused mainly from high-end apartment projects in the West, reaching a total of more than 2,300 apartments. Apartments and 30 low-rise houses recorded new sales in the quarter.
Compared to the same period in 2023, the supply of new apartments for sale in Hanoi in the first quarter of 2024 has increased by 11%. However, this number has not yet recovered to the level of 3,000 – 4,000 new units launched for sale in the first quarter of the previous 2021 and 2022 years.
CBRE expects that in 2024, Hanoi will record more than 12,000 new apartments for sale, an increase of nearly 20% compared to 2023. New supply continues to focus on the high-end segment, causing primary prices in Hanoi to increase. In 2024, it will still be anchored at a high level and could increase by 10% year-on-year.
Meanwhile, the secondary selling price level of apartments after many fluctuations in the past two years is expected to gradually stabilize due to more abundant new supply in the coming quarters.
Shark Hung, vice chairman of the board of directors of CEN Group, said that apartment prices are currently quite balanced compared to supply and demand. Reducing apartment prices in the coming time will be very difficult
At the discussion, “Shark Hung” – Mr. Pham Thanh Hung, vice chairman of the board of directors of CEN Group, said that at this time everyone can feel the sudden increase in prices of apartments, especially is in Hanoi.
Mr. Hung believes that this is a necessary adjustment because for a long time, the real estate market has encountered many difficulties in terms of supply, legality, market… causing investors to face a crisis. excess cash flow.
“According to a report in the first quarter of 2024, the total amount of money lying in commercial banks is 18 million billion VND. However, people who are in dire need of money cannot borrow more because they run out of collateral. “People can borrow money but don’t need it because they don’t know what to borrow for.” – Mr. Hung said.
Along with excess credit, bank interest rates on real estate loans also dropped to an unprecedented low, down to only 5-6%. This is an unprecedented interest rate in history for nearly 30 years. That is the reason why investing in real estate business creates positive cash flow and attracts investors.
Responding to whether apartment buildings will increase or decrease, “Shark Hung” said that there are currently not many other products to replace for real estate investors. Apartment prices increased mainly due to increased land prices. “I think that apartment prices are currently quite balanced compared to supply and demand. If there is a “slip” to increase the price further, there will be an adjustment, but I think there will be no reduction in apartment prices” – Mr. Hung commented.
