Apartment prices continue to rise in major cities

Apartment prices in Hanoi and Ho Chi Minh City continued to rise in the third quarter, going up by 0.24 percent and 0.35 percent from the previous quarter.

According to the Ministry of Construction, lower-end apartments in Hanoi, often built in developing suburban areas like Dong Anh, Gia Lam and Ha Dong, have a high absorption rate of around 70 percent.

Mid- and high- priced projects, especially luxury apartments, sell much slower, and since the onset of Covid-19 many projects have seen little or no demand.

Hanoi’s Q3 new apartment supply fell 60 percent year-on-year to a five-year low of 3,100 units as Covid-19 hampered new launches, according to real estate consultancy firm Savills Hanoi.

The ministry said in HCMC a shortage of apartments led to rising prices along with high absorption rates, and developers therefore had to turn to suburban districts, leading to surging land prices in Binh Chanh, Go Vap and Cu Chi Districts.

Supply is down around 60 percent due to the impact of the pandemic and slow licensing by the city authorities.

Figures from the ministry show apartment prices were VND24.8-37.7 million ($1,068-1,626) per square meter in Hanoi; VND30-50 million in HCMC, VND23-27 million in the northern province of Quang Ninh, VND30 million in northern Hai Phong City, VND30-38 million in southern Binh Duong Province, and VND19-60 million in southern Can Tho City.

Real estate credit grows

Vietnam’s Q2 real estate loans grew 10.2 percent over the first to VND580.17 trillion ($25 billion), showcasing a recovery in demand.

Compared to the quarter-on-quarter growth of just 0.88 percent in the first quarter, showcasing a sluggish real estate market, the Q2 figure is marked improvement, reflecting a resurgence after the nationwide social distancing campaign ended late April, the construction ministry said.

Of the total, 25.9 percent of the real estate loans were for construction and maintenance of existing housing units or to acquire property deeds, it said.

The report also said that most real estate companies have resumed operations after two Covid-19 outbreaks were contained.

Foreign direct investment in real estate was $2.35 billion in the third quarter, four times that of the second, which is a good sign for the industry, the ministry said.

News Related


Ministry withdraws licence from Thua Thien-Hue hydropower plant

The Ministry of Industry and Trade has revoked Thuong Nhat Hydropower Plant’s licences in the central province of Thua Thien-Hue for violating regulations. Thuong Nhat Hydropower Plant’s licences in the central province of... Read more »

Japanese retail giant Takashimaya moves into Vietnam property market

Japanese retailer Takashimaya, whose business is suffering from the impacts of Covid-19, plans to expand into property development in Vietnam with commercial and office projects. Read more »

Blue chips that carried VN-Index deep into the green

Ten of the 30 largest capped stocks on the market have gained over 65 percent after the VN-Index bottomed in March this year. Read more »

Boosting infrastructure connectivity in Vietnam’s southeastern region

Experts have advised the government to found a special investment council and create an infrastructure investment fund for Vietnam’s southeastern region to support its development. The advice was given at the ‘Promoting Infrastructure... Read more »

The Gioi Di Dong opened the 3-storey Green Bach Hoa model combined with An Khang pharmacy

Similar to The Gioi Di Dong and Dien May Xanh, to take advantage of the number of customers, the duo An Khang and Bach Hoa Xanh are combined by MWG in the same... Read more »

Market price is 2,000 dong / share, the Ministry of Construction wants to divest 49% of SHG’s capital at the price of 10,000 dong / share

The Ministry of Construction will sell at the initial price of 13.2 million shares, equivalent to more than 49% of the charter capital of Song Hong Corporation. The starting price is 10,000 VND... Read more »

VN-Index can keep going after crossing 1,000 point mark

Although profit taking pressure will mount, analysts say market conditions still leave room for growth after the VN-Index surpassed 1,000 points. Read more »

Black Friday a damp squib at Hanoi malls

A popular sneaker shop at the Vincom Center on Ba Trieu Street in downtown Hanoi attracted few customers despite a plethora of signs announcing discounts of up to 60 percent. The mall had... Read more »

Apple fans queue overnight to get hands on new iPhone 12 in Saigon

There were long queues outside cellphone stores in Ho Chi Minh City late on Thursday night as Apple fans could not wait for the official launch of the iPhone 12 in Vietnam. Apple started... Read more »

Masan, Mitsubishi Materials to develop tungsten platform

The Masan High-Tech Materials Corporation (MHT) announced on November 27 that it has completed a strategic alliance in the tungsten industry with the Mitsubishi Materials Corporation (MMC), with a view to developing a... Read more »