H1 real estate sales in Vietnam on the rise, numerous projects to hit market

Over 253,000 real estate transactions took place in Vietnam in the first half of this year, a 10.26% increase year-on-year, driven by softer interest rates and sales promotions, while a host of projects are in the pipeline, according to the Ministry of Construction.

Most deals covered land plots as modest apartment supply was recorded, the ministry said.

Regarding supply during H1, the commercial housing segment logged 18 completed projects, 23 newly licensed projects, and 984 in-progress ones. For housing projects that are slated for land use rights transfers, the figures were 32, 16, and 519, respectively. In this period, eight social housing projects were completed.

Apartment prices have been on the rise since late 2023, especially in Hanoi and Ho Chi Minh City, due to limited supply. This increase has, in turn, led to higher prices for private homes and land plots.

A report by property distributor Datxanh Services shows that in Hanoi and its neighboring northern provinces such as Hung Yen, Bac Ninh, Bac Giang, and Quang Ninh, apartment prices have ranged from VND26-VND70 million ($1,023-$2,753) per square meter in H1, up 15-20% year-on-year.

Shophouses were priced at VND40-176 million ($1,573-$6,920)/sqm, up 3-5%; villas at VND29-231 million ($1,140-$9,090)/sqm, up 10-15%; and land at VND17-200 million ($668-$7,867)/sqm, steady over the year.

In HCMC and its adjacent provinces like Binh Duong, Dong Nai, Long An, and Ba Ria-Vung Tau, apartment prices ranged from VND29-82 million ($1,141-$3,225)/sqm in H1, up 5-10% year-on-year.

Shophouses were quoted at VND31-103 million ($1,219-$4,052)/sqm, up 10-15; villas at VND60-239 million ($2,360-$9,401)/sqm, up 5-10%; and land at VND15-55 million ($590-$2,163)/sqm, unchanged over the year.

Projects in the making

The real estate market has witnessed numerous apartment projects that have been kicked off over the past six months.

For example, in the northern region, one of the standout projects is the 872-hectare Vinhomes Royal Island project by Vingroup’s subsidiary Vinhomes in Hai Phong city. It is expected to offer 8,324 apartments, with VAT-excluded prices of VND84-210 million ($3,304-$8,262)/sqm.

Another notable project is the 5.6-ha Lumi Hanoi apartment project invested by Singapore’s CapitaLand in the capital city. It will introduce 3,950 apartments to the market, with VAT-excluded prices of VND62-71 million ($2,439-$2,793)/sqm.

In the central region, the 3.2-hectare Sun Ponte Residence project, developed by the local real estate company Sun Group, is underway in Danang. This development will feature a mix of 552 apartments and low-rise houses, priced between VND65-90 million ($2,557-$3,541) per sqm.

In the southern region, Malaysia’s Gamuda Land started work on the 3.7-ha Eaton Park in Thu Duc city, HCMC. It will include 2,052 apartments and low-rise houses with VAT-excluded prices of VND105-146 million ($4,131-$5,744)/sqm.

Phu Dong Group also kicked off the 0.56-ha Phu Dong Sky One project in Di An town, Binh Duong province. It is projected to supply 780 affordable apartments priced at VND30-40 million ($1,180-$1,574)/sqm, excluding VAT.

Nguyen Hoang, a real estate expert, observes that the market has improved in the first months of 2024. However, new supply remains stagnant, with projects mainly coming from well-known developers such as Vinhomes, Sun Group, Khang Dien, Nam Long, CapitaLand, and Gamuda Land.

He noted that while the market is set to continue its slight recovery for the rest of the year, affordable housing remains scarce.

Le Hoang Chau, chairman of the HCMC Real Estate Association (HoREA), assessed that the real estate market has overcome its toughest period and will fully bounce back from 2025 onwards.