Buyers snap up apartments on fear of rising prices

By Ngoc Diem   April 12, 2024 | 04:44 am PT
Buyers snap up apartments on fear of rising prices
Apartment buildings in Cau Giay District, Hanoi. Photo by VnExpress/Ngoc Thanh
There is a sudden rush to buy apartments, with buyers putting down deposits quickly due to the “fear of missing out” as prices rise, industry insiders said.

"People have never made decisions to buy apartments faster," Do Thu Hang, senior director of research and consultancy at property consultancy firm Savills Vietnam, said at a press briefing Tuesday. "Some make deposits the same day they see a unit."

It used to take much longer to decide since apartments involve large amounts of money, but this seems to be changing now amid a fear of declining supply and rising prices.

The average apartment price in Hanoi is now VND59 million ($2,364) per square meter, 14% up from a year ago.

Units at the lower end, priced at below VND30 million, only account for 4% of new supply and are often snapped up quickly. Half the transactions involve apartments priced VND4 billion or more.

Another consultancy firm, CBRE, said the majority of new supply in Hanoi is in the high-end range of VND60-120 million per square meter.

Prices in HCMC were 35% higher than in Hanoi two years ago but the gap has now narrowed to 10%.

On the secondary market, prices have increased by 17% in the last year to VND36 million, the highest 12-month rise ever recorded.

In a report, consultancy Cushman & Wakefield said Hanoi apartment prices have risen by 109% in 10 years.
But Hang advised buyers to consider carefully before deciding to buy an apartment, especially if the price is unreasonable.

Trang Bui, CEO of Cushman & Wakefield Vietnam, said the shortage of new supply has pushed up prices in the short term.

There are still opportunities for reasonable prices in the coming years as legal hurdles are expected to be resolved, she added.

Starting in 2025 around 84,400 apartments at 101 projects are expected to be launched, especially in provinces to Hanoi’s west such as Bac Ninh and Hung Yen.

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