HCMC – Housing prices in some Vietnamese provinces and cities have climbed, even with a rise in supply in the third quarter of 2024.
The Ministry of Construction reported on October 30 that although more housing projects have been completed and newly approved, price fluctuations persist, especially in certain market segments in Hanoi City.
In Q3, 16 commercial housing projects were completed nationwide, with 3,314 units. Additionally, 23 new projects with 11,669 units got construction permits, and 55 projects with 21,374 off-the-plan units were approved. Nearly 38,400 condos and detached house were transacted, alongside around 103,000 land plot deals.
Condo prices in Hanoi City increased across both new and existing developments, with new project prices up by 4% to 6% quarter-on-quarter and 22% to 25% year-on-year. The report also highlighted rising villa and townhouse prices, with secondary market prices averaging around VND160 million per square meter in sought-after areas.
In HCMC, villa and townhouse prices in prime projects held steady, though certain upscale segments saw significant declines, with prices dropping by up to 14% quarter-on-quarter and 28% year-on-year in larger properties. Homes priced below VND10 billion saw relatively high transaction volumes during the quarter.
The ministry attributed the price increases to rising land costs and recent adjustments in land valuation methods. In some provinces, land-use auctions resulted in winning bids far exceeding initial prices. In other cases, loosely regulated auctions enabled groups of investors to inflate land prices by bidding high and later canceling purchases to establish artificial price benchmarks.
Supply shortages in affordable and mid-range housing were also noted, driven by legal challenges and financing difficulties faced by real estate firms. High land costs, lengthy land-use assessments, and restricted access to credit were cited as major obstacles to expanding affordable urban housing options.
