Sun. Jul 14th, 2024

New apartment prices in Ho Chi Minh City are opposite to Hanoi

New apartment prices in Ho Chi Minh City are opposite to Hanoi 6
New apartment prices in Ho Chi Minh City are opposite to Hanoi 6

A recent market report from CBRE (a unit specializing in providing services in real estate consulting, investment management…) shows that the apartment price level in Ho Chi Minh City has not changed much compared to last year.

The average price of new apartments here is about 61 million VND per square meter, down 3% as of the end of the first quarter. The price level has not adjusted much compared to the pre-sale period, so the absorption rate of new apartment projects

`The price offered by investors at this time is consistent with the general level of the region,` CBRE commented.

Data from real estate services consulting firm JLL also shows that, by the end of March, high-end primary prices in Ho Chi Minh City tended to go down, down 1.3%.

In contrast to developments in Ho Chi Minh City, Hanoi apartment buildings increased rapidly in the first three months of the year.

Prices of many old apartment buildings also escalated, increasing by 17%, the highest level ever.

Some apartment buildings along Hanoi Highway, Thu Duc City.

The reason for the contrasting housing prices in the two largest urban areas in the country, according to Ms. Nguyen Hoai An, an expert at CBRE, Ho Chi Minh City apartment buildings have passed the hot development period and are now entering a period of price stability.

The supply of high-end to luxury apartments in this market is still quite large, investors must offer attractive payment policies, even high discounts, to increase competition for new projects.

For example, most investors launching projects at this time in Ho Chi Minh City come with big incentives to stimulate demand.

A project in the Eastern region applies preferential mortgage interest rates for 15 years and is considered a `first appearance`.

Even to `push` sales, many projects also apply discounts of up to 24% when buyers pay the full value of the house.

In addition, Ms. An added, on average, each project when launched often attracts more investment buyers than residential buyers.

However, data from research unit Savills shows that the majority of sales in the first quarter in Ho Chi Minh City were in the class C segment, accounting for over 60% of the market share;

Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan channel, acknowledged that the contradictory developments between the two markets have motivated a group of customers in the South to pay more attention to Hanoi apartments, because of lower prices.

This channel’s data shows that the amount of interest in Hanoi apartments from users from Ho Chi Minh City has increased 7.5 times from the beginning of 2021 to now.

This year, about 8,000 new apartments are expected to open for sale in Ho Chi Minh City, with selling prices increasing by about 3%, less than Hanoi apartments.

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