Apartment prices in Hanoi and Ho Chi Minh City increased from 0.21 to 0.77% compared to the second quarter

Regarding housing price movements, according to the Ministry of Construction's September and 9 months of 2019 socio-economic situation, citing data collected from the real estate brokerage association's report, in In the second quarter of 2019, in Hanoi and Ho Chi Minh City as well as some other localities, the real estate market had 18,115 successful real estate transactions (up 28.9% compared to the first quarter of 2019).


Photo: Minh Anh.


The number of resort real estate (condotels, tourist villas) successfully traded in the second quarter of 2019 is 1,398 transactions.


In the third quarter of 2019, real estate prices in Hanoi and Ho Chi Minh City fluctuated, but the amount of fluctuations was not large.


Specifically, according to the Ministry of Construction, in Hanoi, the price of apartments increased by 0.21% compared to the second quarter of 2019 (of which, for high-end apartments, the price decreased by 0.12%, apartments). Average households increased by 0.31%, affordable apartments increased by 0.76% compared to the second quarter of 2019. For individual houses, the price increased by 1.25% compared to the second quarter of 2019.


In Ho Chi Minh City, the price of apartments increased by 0.77% compared to the second quarter of 2019. Specifically, the segment of high-end apartments increased by about 0.5%, mid-end apartments increased by 0.99% and affordable apartments increased by about 0.54% compared to the second quarter of 2019. And individual houses increased by 2.74% compared to the second quarter of 2019.


Apartment prices in all segments in Ho Chi Minh City increased over 50% in the period of 2015 - 2019


Regarding Ho Chi Minh City market, DKRA Vietnam recently reported changes in selling prices of apartments in Ho Chi Minh City market in the period of 2015-2019. According to this report, the prices of high-end apartment buildings (Grade A), mid-end (Grade B) and affordable (Grade C) have all fluctuated. Over the 5-year cycle, prices of apartments in Grade A, B and C have increased by over 50% on average.


Ho Chi Minh City real estate market. Photo: Vu Le/VnExpress


According to DKRA, in 2015 the average selling price of Grade A apartments was VND 40 million per m2. This price has increased on average 12.5% per year thereafter. Specifically, in 2016 and 2017, this price was VND 45-55 million/m2. In 2018, the price of this apartment segment was 57 million VND/m2, an increase of less than 4%.


Notably, in the first 8 months of 2019, the price of Grade A apartments has increased by 7%, currently at VND 61 million/m2 and there are signs of further increase in the near future.


As for Grade B apartments, in 2015, the average price was 21 million VND/m2 and by August 2019 it was 32 million VND/m2. In the first three quarters of 2019, the average price of Grade B apartments increased by 3%.


Although ranked behind Grade A and B, Grade C apartments are of interest to the market and have significant price changes. Specifically, in 2015, the price of a Grade C apartment was only VND 16 million/m2 and at the end of August 2019, this figure was VND 24 million/m2. In the past 12 months, the average price of Grade C apartments has increased by 9%.


DKRA also said that in the high-end apartment segment, there was a sharp change from average price to ceiling price (peak). The price of 61 million dong/m2 was recorded as an average. In fact, the apartment market in Ho Chi Minh City has appeared the area of hundreds of millions of dong for luxury apartments.


DKRA Vietnam also said that the price of apartments in Ho Chi Minh City is likely to continue to increase in the fourth quarter of 2019 due to the shortage of supply when the projects have longer legal preparation time than before.


The survey company also assessed that housing demand in Ho Chi Minh City is still very large due to strong mechanical migration, so the housing market in this city is still considered attractive and potential in the next years.


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