Although most investors do not change prices, high-priced low-rise inventory causes primary prices to increase. For example, primary villa prices increased by 55% quarter-on-quarter to 160 million VND/m2 of land, mainly due to low-priced goods in Me Linh being sold in the third quarter of 2023. Adjacent prices increased 3% quarter-on-quarter to 194 million VND/m2 of land. Shophouse prices also increased 3% quarter-on-quarter to 328 million VND/m2 of land.
Waiting for supply at reasonable prices in the vicinity of Hanoi
According to Ms. Do Thu Hang, Senior Director of Savills Hanoi Research & Consulting Department, the housing segment continues to grow in price due to increased land costs and construction costs, and infrastructure development. development and quality are improved. The limitation in supply in the market continues, leading to the average primary selling price of the entire market continuing to increase.
Savills representative said that current buyer psychology still has concerns. Because in reality, the number of apartments sold in the last three months of 2023 are mainly projects where the investors are reputable, legally guaranteed, and have fulfilled their financial obligations. Therefore, despite being supported in terms of bank loan interest rates for real housing needs, buyers have certain concerns about legal factors.
Furthermore, the bank is also concerned that the investor has not fulfilled its legal obligations to the project to complete loan procedures. This invisibly affects the decisions of buyers and the number of houses sold, and also explains the fact that although lending interest rates have decreased, the absorption rate is still not high.
Infrastructure development will promote housing demand to provinces and areas surrounding Hanoi with reasonable prices and larger land funds.
According to Ms. Hang, in the context of limited supply and high primary prices, home buyers can expect new supply from infrastructure development. Infrastructure investment projects such as Ring Roads 3, 5 and 4 will expand Hanoi’s housing market, aiming to not concentrate demand in the inner city and central areas. Infrastructure development will promote housing demand to neighboring provinces and areas with reasonable prices and larger land funds.
Savills’ report also believes that this is a positive point for supply, as housing products in non-central areas and neighboring provinces will increasingly increase, helping to meet Hanoi’s housing needs. .
Specifically, in 2024, the market is expected to receive an additional 12,100 new apartments, with 87% of the market share located in Hoang Mai, Nam Tu Liem and Ha Dong districts. Hung Yen and Bac Ninh will provide about 203,000 apartments from 2024 to 2026. By 2026, the low-rise segment is expected to have 14,000 new apartments from 37 projects.
In addition, the passing of the Housing Law (amended), the Real Estate Business Law (amended) and most recently the Land Law (amended) is expected to have a positive impact on the market.