Land price hikes stop, but property remains expensive

Though land fever has eased, prices are still high. The apartments in projects in advantageous positions are being offered at sky-high prices of VND300-400 million per square meter.

Land price hikes stop, but property remains expensive

The Ministry of Construction’s (MOC) Q1 report on the real estate market showed that there were nearly 25,400 successful transactions in the quarter, a sharp decrease of 86 percent compared with Q4 2020.

The figure included 5,571 successful transactions in Hanoi and 3,450 in HCM City. There were over 11,000 transactions in the north and 6,000 in the south.

These transactions were mostly seen in affordable market segment, while the transactions of high-end products decreased significantly.

Though the number of transactions in some market segments has decreased, prices remained high despite the Covid-19 pandemic.

Commenting about the land fever, MOC said the land prices increased for a short time before going down, and the increases were seen in only some localities.

Though land fever has subsided, the apartment prices keep increasing monthly, by 5-10 percent on average compared with the fourth quarter in 2020.

Some projects have seen sharper price increases. Stellar Garden in Hanoi, for example, has seen an increase of 6.4 percent, Seasons Avenue 5 percent, and Xuan Mai Complex 5.4 percent.

In HCM City, a price increase of 4.6 percent has been reported for Feliz En Vista, 5.2 percent for The Metropole Thu Thiem, 6.1 percent for Waste Gate Park, and 5 percent for Dat Gia Residence Thu Duc.

In Binh Duong province, the prices in some recent transactions were higher by 4-5 percent at Bcons Suoi Tien, The East Gate and Compass One, compared with the fourth quarter of 2020.

Super-luxury apartments

Analysts note that there are very few affordable apartments (less than VND25 million per square meter) for buyers. These products are only available in areas far from the city center.

Analysts note that there are very few affordable apartments (less than VND25 million per square meter) for buyers. These products are only available in areas far from the city center.

Even these low-cost products have also seen prices rising from VND20 million per square meter to VND25 million.

As for mid-end apartments, the products in newly developed projects in Hanoi have selling prices of between VND30 million and VND40 million, mostly in the districts of Ha Dong, Thanh Xuan, Cau Giay and Gia Lam.

 

In HCM City, mid-end apartments are more expensive than in Hanoi, with prices of VND35-45 million per square meter.

New price levels have been set up for high-end apartments in Hanoi and HCM City. The products with high quality and luxury equipment are very pricey. At The Nine – Pham Van Dong, apartments are selling at VND50 million per square meter.

The prices are even higher at The Matrix (VND55-60 million per square meter), D’.Le Roi Soleil – Quang An (VND80 million), Grandeur Palace Giang Vo (VND80 million) and The Tresor VND60-70 million.

The luxury apartments located on the so called ‘golden land’ are sold at over VND100 million per square meter. One project has quoted the price of VND300 million per square meter, according to MOC.

Prior to that, according to CBRE, the average price of high-end apartments in 2019 was $6,308 per square meter, or VND150 million, up by 10 percent over 2018.

In last March, the Vietnamese realtors’ community was stirred up by the news that a project in HCM City was introduced to Hong Kong’s investors at the new price peak of $18,000 per square meter, or VND423 million.

Also in late March 2021, an apartment project on Ton Duc Thang street, one of the backbone routes along Sai Gon River, reported successful transactions at $18,000 per square meter, which set a new record in Q1 2021.

High-end and super-luxury apartment prices are moving up and new peaks have occurred. The products have the starting price of $16,000 per square meters.

MOC said that apartment prices in both Hanoi and HCM City are rising because of a supply shortage.

There were 95 commercial projects in Q1 with 38,210 apartments licensed, 1,380 projects with 306,503 apartments under execution, and 41 projects with 5,280 apartments completed.

As for social housing projects, there were only two projects with 595 apartments that received new licenses in 54 out of 63 cities/provinces which submitted reports to the ministry.

There were 72 projects with 105,971 apartments under execution, 6 projects with 630 apartments completed, and 11 projects with 3,606 apartments recognized as meeting the requirements to sell in the future. 

Thuan Phong

As land prices soar, land management in 26 provinces to be inspected

As land prices soar, land management in 26 provinces to be inspected

The Ministry of Natural Resources and Environment has told local authorities to inventory land and report on land use. 

Five suburban districts to become inner districts, land price soars

Five suburban districts to become inner districts, land price soars

The plan to turn some suburban districts in HCM City into inner districts is only on paper but it has triggered a new land fever in localities.

 
 

Other News

.
Multi-billion VND apartment buildings unoccupied in central Hanoi
Multi-billion VND apartment buildings unoccupied in central Hanoi
FEATUREicon  18/05/2021 

Many apartment buildings in Hanoi have been left idle for many years, even while many people seek accommodations.

Ben Tre takes different approach to change its fate
Ben Tre takes different approach to change its fate
FEATUREicon  18/05/2021 

“What should we do – continue to complain about difficulties to get subsidies from the state budget, or become self-reliant to rise up,” said Ben Tre Provincial Party Committee Secretary Phan Van Mai.

Old discarded clothes turned into expensive products
Old discarded clothes turned into expensive products
FEATUREicon  15/05/2021 

All old things, from clothes and guitars to motorbikes, can be recycled into useful and highly aesthetic items thanks to talented artisans.

Female scientist wants to start public awareness campaign about organ donations
Female scientist wants to start public awareness campaign about organ donations
FEATUREicon  16/05/2021 

Dr Do Pham Nguyet Thanh, born in 1995, an expert at the Biomedical Research Center under the Pham Ngoc Thach University of Medicine, has been honored as one of HCMC 2020 Outstanding Young Citizens thanks to her active contributions to the community.

Hanoi advised to follow Japan’s urban railway model
Hanoi advised to follow Japan’s urban railway model
FEATUREicon  16/05/2021 

The Tokyo-Tshukoba urban railway line was funded by converting land in 18 projects along the route. The land price in these areas soared from $1 per square meter to $5,000.

Covid-19 vaccine and the gap between countries
Covid-19 vaccine and the gap between countries
FEATUREicon  16/05/2021 

The US announcement to support the waiver of IP protection on Covid-19 vaccine has not been the good news that was previously expected.

9-year-old pupil becomes national master of chess
9-year-old pupil becomes national master of chess
FEATUREicon  14/05/2021 

At the age of nine, Hanoi’s Dau Khuong Duy has been granted the title national master of chess.

Phu Tho woman finds husband after 13-year absence
Phu Tho woman finds husband after 13-year absence
FEATUREicon  14/05/2021 

Thanks to a video posted on Tiktok, a woman in Phu Tho province has found her husband who was missing for 13 years.

The path for Vietnam to become owners rather than just wage earners
The path for Vietnam to become owners rather than just wage earners
FEATUREicon  17/05/2021 

Technology and innovation are the answers to the question about how Vietnam can to escape from doing only outsourcing for foreign partners.

Prime Minister sets strategic direction for information and communications sector development
Prime Minister sets strategic direction for information and communications sector development
FEATUREicon  14/05/2021 

Prime Minister Pham Minh Chinh, during a working session with the Ministry of Information and Communications (MIC) on May 11, assigned tasks and set strategic development goals for the time to come.

Steel manufacturer tries to revive after 10 years of being idle
Steel manufacturer tries to revive after 10 years of being idle
FEATUREicon  14/05/2021 

The expansion of the Thai Nguyen steel project has yet to be completed after 14 years. Several former managers of the Thai Nguyen Iron and Steel JSC (Tisco) have been sent to prison for wrongdoings related to the project.

Vietnamese enterprises lose their home market as they focus on land deals
Vietnamese enterprises lose their home market as they focus on land deals
FEATUREicon  15/05/2021 

Many enterprises would rather use their capital to buy and sell land than make investments to scale up their production.

Poor people lose chance to buy houses with funds from gov't preferential credit package
Poor people lose chance to buy houses with funds from gov't preferential credit package
FEATUREicon  13/05/2021 

As the VND30 trillion preferential credit package has ended, many realtors and clients have fallen into a difficult situation.

Brother-sister pair wins Asian championship in skating
Brother-sister pair wins Asian championship in skating
FEATUREicon  13/05/2021 

Falling passionately in love with ice dancing in childhood, the skating siblings Minh and Chi could not imagine that the sport would ever bring such honors to them.

With over US$1 billion, a new Vietnamese billionaire is revealed
With over US$1 billion, a new Vietnamese billionaire is revealed
FEATUREicon  13/05/2021 

The assets of the richest people in Vietnam have risen sharply in recent times. Many tycoons have earned huge recently.

Lessons from the Covid-19 'tsunami' in India
Lessons from the Covid-19 'tsunami' in India
FEATUREicon  12/05/2021 

Proactively protecting yourself, going out only when absolutely necessary, fulfilling medical declarations, strictly following the 5K message, and installing the Covid-19 tracking app Bluezone are the best ways to prevent the spread of Covid-19. 

Land fever: speculators spread rumors to push prices up
Land fever: speculators spread rumors to push prices up
FEATUREicon  12/05/2021 

Land prices recently soared by VND30-50 million per square meter in some places, but the number of successful transactions was modest.

Vietnam’s pho sold under Chinese brand, fish sauce marked with Thai brand
Vietnam’s pho sold under Chinese brand, fish sauce marked with Thai brand
FEATUREicon  12/05/2021 

Vietnam’s ST25 rice is at risk of having its brand stolen in the US and Australian markets. Losing brands is the heavy price that Vietnamese enterprises will pay for their inappropriate attention to trademark register.

Investors prefer trading in land, shun the less profitable auto industry
Investors prefer trading in land, shun the less profitable auto industry
FEATUREicon  14/05/2021 

Vingroup has sent a dispatch to the Ha Tinh provincial People’s Committee, proposing a project on an automobile complex.

Race for Covid-19 vaccine must start soon
Race for Covid-19 vaccine must start soon
FEATUREicon  13/05/2021 

Last week, my friend told me that his daughter, who is studying in the US, had just been vaccinated against Covid-19 just one day after returning in the US to attend college. 

 
 
 
Leave your comment on an article

OR QUICK LOGIN