House prices increased slightly

Vice Chairman of Vietnam Association of Brokers said that the real estate market in Hanoi and Ho Chi Minh City despite the decline in supply and transaction volume, the absorption rate was still relatively high. Housing real estate prices tended to increase slightly but no hot status...


Information on the situation of supply - demand of real estate market in the first 6 months, Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Real Estate Brokers Association said, real estate market in Hanoi and Ho Chi Minh City although there was a decrease in both supply and volume, the absorption rate was still relatively high.


According to the Vietnam Association of Real Estate Brokers, in the first 6 months of the year, housing prices tended to increase slightly but no hot status...


Specifically, in Hanoi market, the supply of real estate in the second quarter reached 7,772 products, increased 49.3% compared to the previous quarter. Notably, the largest supply in the Hanoi market was the mid-end segment, priced from VND 25 - 35 million/m2 with more than 5,700 apartments and the most successful transaction volume in this segment. More than 4,200 were successful transacted.


Next, the affordable apartment with the price of less than VND 25 million/m2 had more than 1,000 products to the market, which were successfully traded to nearly 900 apartments.


For the first 6 months of 2019, the housing supply of housing real estate reached 12,976 products, equaling 76.05% over the same period in 2018. The rate of absorption of residential real estate in the first 6 months reached 68.6% . Especially, in the second quarter, the absorption rate of affordable apartments reached 84.7%.


One of the main reasons for the decline in both supply and transaction in Hanoi market is, said Mr. Dinh said, because the State Bank's policy of reducing real estate credit began to affect real estate investment and trading.


Similarly, according to data reported by the Brokerage Association, the HCMC real estate market in the first 6 months of 2019 also decreased sharply in both supply and transaction volume of the market.


Generally in the first 6 months, the supply of housing real estate in Ho Chi Minh City reached 10,715 products, equaling 39.1% over the same period in 2018. The transaction volume reached 8,560 products, equaling 46.8% over the same period of 2018. The absorption rate of houses in the first 6 months reached 79.9%.


Notably, in the city market. HCM, the price of apartments in the second quarter increased by about 5% compared to the previous quarter, while the land price rose 2-3%.


“The real estate market in Hanoi and Ho Chi Minh City, despite a decline in supply and transaction volume, the absorption rate is still relatively high. This shows that the demand in these 2 areas is still very strong. Housing real estate prices tended to increase slightly but not too hot, the market maintained at a stable level. Therefore, no real estate bubbles appeared” said Vice President of Vietnam Real Estate Brokers Association.


Commenting on the market in the last 6 months, Mr. Dinh said, in Hanoi market, the supply for sale and the number of transactions were expected to increase sharply. However, the selling price would not be much volatile, fluctuating below 5% and absorption continues to remain high.


With positive moves from the city government, HCMC market promises a strong development in both supply and transaction volume. House prices are expected to increase sharply, which will stimulate investment activities of retail investors in the last 6 months.


In addition, in the areas of Nha Trang, Da Nang, Quang Ninh,... Mr. Dinh said that without positive changes from the local government, the real estate market in the last 6 months of the year will have no changes compared to with the beginning of the year.


According to Minh Thu