Hanoi, HCMC apartment prices rise in Q3

By Ngoc Diem October 22, 2023 | 03:07 pm PT

Office buildings, apartment blocks and houses in District 7, Ho Chi Minh City. Photo by Quynh Tran

Apartment prices on the primary market increased by 14% year-on-year in Hanoi and 15% in HCMC in the third quarter, with analysts attributing it to high demand for housing.

The average selling price in Hanoi stood at nearly VND51 million (US$2,125) per square meter, Hoang Hai, director of the Ministry of Construction’s department of housing and real estate market management, said at a regular press conference on Oct. 19.

Apartment demand showed signs of recovery with the number of people looking to buy and rent rising by 1%, and 6% from the second quarter.

Apartments priced VND2-4 billion were the most sought after. Primary market prices have been rising for 19 consecutive quarters, and are now 77% higher than in the first quarter of 2019, according to real estate consultancy Savills Vietnam.

In the secondary market in Hanoi, prices rose in all districts, including by over 3% in Dong Da, Thanh Xuan, Nam Tu Liem, Tay Ho, and Gia Lam.

In HCMC, according to a report by real estate consultancy Cushman & Wakefield, the average primary market price remained almost unchanged from the second quarter but surged by 15% year-on-year to more than VND60 million per square meter.

Prices on the secondary market inched up by 3% year-on-year.

According to the Ministry of Construction, 21 apartment projects with more than 7,600 units were completed in the third quarter, triple the number in the previous quarter. Another 860 with nearly 450,000 units are under construction.

Savills said there would be supply of 2,200 apartments in the fourth quarter, and nearly 53,000, mainly Grade B apartments, by 2025.

To promote housing supply, the ministry will continue to review and mitigate problems faced by developers, and simplify planning, appraisal and approval procedures for new projects.