The latest reports from Batdongsan.com.vn show that apartment prices in Hanoi and Ho Chi Minh City increased in the first nine months of 2022 compared to the same period last year.

In Hanoi, apartment prices had increased by 5-8 percent in the first quarter of this year compared to the average selling price in 2021, and by 53 percent against the prices reported in early 2019.

Mid-end apartments with prices of between VND30-50 million (USD1,300-2,140) per square metre saw the highest increase in selling prices, of 15.5 per cent. This segment attracted the most interest from customers.

In the past two years, apartments in the districts of Cau Giay and Thanh Xuan were offered at around VND30-40 million (USD1,300-1,700) per square metre. The price has now increased to VND45-60 million per square metre.

Districts of Gia Lam, Hoai Duc, and Dong Anh are areas with more land available but real estate prices there also tend to increase to a level close to those inner city areas. Specifically, the price of apartments has risen from VND18-20 million per square metre some months ago to over VND30 million per square metre.

Explaining the price increase, the business director of Batdongsan.com.vn, Le Dinh Hao, said that Hanoi was now seeing limited supply.

"Most of the apartments for sale belong to mid-end and high-end segments," he said. "There are now no low-end apartments with prices of below VND25 million per square metre for sale."

Do Thu Hang, Director of Research and Consulting at Savills Hanoi also said that the prices have started to increase since 2019 due to the decline in supply.

"Tightened legal procedures and increasing depletion of available land sites are among the reasons for the problems," she said. "The rising prices in construction materials and land prices have also added to the situation."

According to the Vietnam Association of Realtors, the supply of new apartments in the first quarter of 2022 was estimated at 2,800 units, 38 percent down on the same period in 2021, mainly from ongoing projects.

This year, some eleven projects are expected to be listed in the Hanoi market, including Vinhomes Ocean Park, Sunshine Green Iconic, FLC Premier Parc, BRG Smart City, and Vinhomes Co Loa, Heritage West Lake, and others.

Source: Dtinews