Real Estate August, 2019: Saigon land cooled, Hanoi attracted investors

The real estate market in August 2019 continued to record the scarcity of new projects in the apartment segment, causing apartment prices to be pushed up in Ho Chi Minh City, and secondary transactions in Hanoi were vibrant. In addition, the land market in Saigon plummeted, particularly in the residential land segment of Hanoi, the price of 1 billion attracted real buyers and investors.


Apartments continue to be in short supply


The review of legal procedures and projects of the authorities has caused the supply and transactions in key markets to decline sharply.


In Ho Chi Minh City, from the end of 2018 to the first half of 2019, the market has about 5 new projects offered for sale. The remaining supply of the market is mainly from previously announced projects and completed legally a few years ago. It is this scarcity that has pushed up the price of apartments in Ho Chi Minh City during the first 8 months. Online data of Batdongsan.com.vn shows that if in Q1/2018, the average price of the apartment is 28 million VND/m2, then after one year, the set price is 34 million VND/m2. In the second quarter of 2019, apartment prices continued to increase by 11.3% over the same period and 2.1% compared to the previous quarter. Most recently, according to Batdongsan.com.vn survey data, apartment prices increased by 12% over the same period in 2018.


The move to review the procedures and legal projects of the authorities has led the supply and transactions in key markets plummeted. Illustration


In Hanoi, the number of newly launched projects is only counted on the fingers. Scarce of primary sources, the Hanoi apartment market recorded a vibrant reality in the secondary market in mid-range and low-cost projects, ranging from VND 1.5 billion or less.


Nam Tu Liem and Ha Dong are the focal points of these deals as these are two markets that focus on a large number of mid-range housing units. In Ha Dong, projects such as Van Khe, Duong Noi, Xuan Mai Complex, Sails Tower... recorded many successful transactions in the secondary market over the past time. Similarly, some names that can be mentioned in Nam Tu Liem are Hateco Xuan Phuong, Viglacera OCT, ICID Complex... In the secondary market, most of the selling price is equal to the buying price or if there is an equivalent difference furniture money. Some new projects handed over such as Hateco Xuan Phuong, ICID Complex... transactions on the secondary market reached a slight difference of 40-60 million VND/unit.


Saigon land is quiet, Hanoi attracts investment cash flow


Once upon a time there was a constant fever of the Saigon land market, but for many months now, the East was quiet, land prices and transactions plummeted. The East is currently the place with the strongest fluctuations in land prices today. In the first quarter of 2019, the land market in District 9 recorded a sharp increase in prices. Land plots on Nguyen Xien street from VND 40-45 million/m2 in May 2018 were shouted at VND 50-55 million/m2 in the first quarter of 2019; La Xuan Oai route from 42 million dong/m2 to 55-60 million dong/m2; Hanoi Highway from 55 million VND/m2 up to 60-65 million/m2; Vo Van Hat street from 41 million dong/m2 to 50 million dong/m2. However, up to now, successful transactions have recorded the actual price 10-25% lower than the asking price. Demand for investment decreased, real buyers were neither interested nor able to buy land here, causing a sharp decline in the regional market.


Once upon a time it was a constant hot spot of the Saigon land market but for many months now, the East has been quiet. Illustration


Experts explained that it was the overwhelming investors in the East that previously caused the land price to blow up. The price is too high, which makes it difficult to create market waves, investors are not keen, real buyers are also not eager for going beyond financial capabilities.


Meanwhile, in Hanoi, according to a survey of Batdongsan.com.vn, the residential land segment of VND 1 billion in the two districts of Nam Tu Liem and Bac Tu Liem is attracting people with real and real-life needs. Specifically, in Nam Tu Liem, the plots of Xuan Phuong, Phuong Canh, Mieu Nha (Tay Mo), Dai Mo... with the area of 30-35m2 are being sought and bought the most, the prices of the lots range from 22- 37 million dong/m2. These lots are mostly in small alleys, cars cannot access.


For example, the land is at the end of Tran Huu Duc street, in a small alley in Xuan Phuong with the selling price of 30-32 million VND/m2. The land in the small alley in Phuong Canh is also priced from 30-35 million VND/m2. Many plots of land at Tu Hoang (Phuong Canh) near the University of Industry have a fairly soft asking price, from VND 24-31 million/m2. Residential land in 2m small alleys in Mieu Nha (Tay Mo) is offered at 28-32 million dong/m2. Land in the small alley in Dai Mo has price ranging from 25-30 million/m2.


In the North Tu Liem area, the segment of residential land worth 1 billion is concentrated in the areas of Dong Ngac, Lien Mac and Tay Tuu. Specifically, the land in the small alley in Tay Tu has the price ranging from 22-24 million VND/m2, the land in Lien Mac ranges from 19-22 million VND/m2, the land in Dong Ngac offers for sale from 29-36 million VND/m2. Land lots in these areas are common in areas of 30-40m2. Thus with a total amount of 650 million - 1.2 billion, buyers were able to own a piece of land in Hanoi.


According to Bach Cuc