A view of Hà Nội. The secondary price of condominiums in Hà Nội this quarter experienced a price increase of 17 per cent year on year. —VNA/VNS Photo

HÀ NỘI — In the condominium market, the average selling prices of projects in both primary and secondary markets in Hà Nội have increased rapidly in the first three months of 2024, approaching the price levels recorded in HCM City, according to CBRE Việt Nam. 

CBRE's report on the property market in the first quarter of this year stated that condominium prices in HCM City witnessed hardly any significant changes. At the end of the first quarter of 2024, the primary price of condominiums in HCM City remained at VNĐ61 million per sq.m (excluding VAT and maintenance fees) but down by 3 per cent year on year. Developers continued to maintain attractive sales and payment policies to increase liquidity.

Meanwhile, the majority of new supply in Hà Nội continued to focus on the high-end segment, which has driven up the prices of condominium projects in the primary market. The average primary price of condominiums in Hà Nội reached VNĐ56 million per sq.m, up by 5 per cent quarter on quarter and 19 per cent year on year. 

This quarter witnessed a significant reduction in the price gap between condominiums in HCM City and Hà Nội's primary markets. From a difference of 35 per cent observed at the end of 2022, the current primary price in Hà Nội is only lower by approximately 10 per cent than in HCM City.

In particular, the secondary price of condominiums in Hà Nội this quarter experienced the highest annual price increase ever recorded, rising by 17 per cent year on year and reaching an average of over VNĐ36 million per sq.m. Strong growth was observed across districts, particularly in western Hà Nội, where the existing supply is abundant and the population is dense. 

Nguyễn Hoài An, Senior Director of CBRE Vietnam's Hà Nội branch, commented: "There is an increasing interest in condominium products in Hà Nội. With the ongoing limited supply in HCM City and the lack of substantial movements in Hà Nội's landed property market following the booming 2021-2022, several investors have shifted their investment focus towards condominium projects, particularly in Hà Nội."

In the landed property market, the average primary price in Hà Nội continued to rise and reached over VNĐ190 million per sq.m. Compared to the fourth quarter of 2023, the prices have increased by 4 per cent, mainly due to the limited new supply and the sold-out primary stock of a project located in an outlying area of Hà Nội. 

On the other hand, the secondary price of Hà Nội's landed property began to increase, reaching nearly VNĐ160 million per sq.m and up by 1 per cent quarter on quarter. In HCM City, secondary prices slightly decreased in several landed property projects far from the city centre, while projects in the inner districts remained relatively stable.

One notable bright spot of the primary residential market in both key cities in the first quarter of 2024 was the bookings of upcoming projects.

"By the end of the first quarter of 2024, we have observed many projects initiating booking activities not only in the two major cities of Hà Nội and HCM City, but also in neighbouring provinces such as Hưng Yên, Hải Phòng, Quảng Ninh and Bình Dương," An said. 

"This indicates a more booming market in terms of supply and absorption in the upcoming time. Abundant new supply with relatively good locations is likely to attract investors, resulting in a stabilising price level in the secondary market in the coming quarters following a period of rapid growth," she said.

Meanwhile, Đỗ Thu Hằng, senior director, advisory services, Savills Hà Nội said: "In general terms, the Hà Nội property market continues to improve however there is a heavy stock bias of Grade B apartments. Key infrastructure projects could well deliver more affordable mass market product."

Amended laws are expected to give the housing market room to grow. From 2025 onward, about 84,400 units from 101 projects will enter the Hà Nội property market, she said.

Products in satellite provinces will increasingly meet Hà Nội's housing demand. Hưng Yên and Bắc Ninh will provide about 203,000 units from 2024 to 2026 onward. Improving infrastructure, more affordable products and diverse facilities are key success factors, she added.

Laws related to real estate were passed, plus continuing infrastructure development, upcoming mega projects, and buyers' returning confidence all signal a promising year for the Hà Nội real estate market, according to Savills Hà Nội.

Improved trading

For the general real estate market in the first quarter of 2024, Dung Dương, Executive Director of CBRE Vietnam, commented, "Economic recovery along with the government's efforts to accelerate the implementation of the amended Land Law 2024 have contributed to strengthening the market sentiment of both developers and individual investors."

"2024 is considered a pivotal year for the real estate market to transition into a healthier and more sustainable stage of development."

"Market participants across all real estate sectors in 2024 expect to continue to benefit from residential sales policies and commercial rental policies with numerous attractive incentives, helping to reduce investment costs."

According to CBRE, New supply in the first three months of 2024 continued to be limited in both Hà Nội and HCM City residential markets. 

Particularly, the new supply in Hà Nội in the first quarter of 2024 was mainly high-end condominium projects in the city's West, with over 2,300 condominium units and 30 landed property units, up 11 per cent year on year. 

Meanwhile, in HCM City, only about 500 condominiums were launched in the first quarter of 2024, mostly from the subsequent phases of existing projects launched in 2023. 

There was only one new project in the high-end segment, launching over 80 units in the south of the city. New supply in the first quarter of 2024 in HCM City dropped to its lowest level in about 15 years, down 17 per cent year on year.

The absorption rate in Hà Nội's condominium market witnessed some positive signals, although most of the new supply was launched towards the end of the first quarter.

In HCM City, along with limited new supply in this quarter, the number of sold units for condominiums also remained low, with around 600 condominium units sold in the first quarter of 2024, down 74 per cent quarter on quarter but higher than quarterly new launches.

The absorption rate of new launches in the first quarter reached approximately 80 per cent, thanks to stable selling prices from new selling phases of existing projects and a new project launched at reasonable selling prices. — VNS