Hanoi, HCMC see contrasting trends in Q1 residential real estate prices

By Vu Pham, Minh Hue
Tue, July 2, 2024 | 1:47 pm GMT+7

The residential indices in Hanoi and Ho Chi Minh City saw opposing trends in the first quarter of 2024, rising eight percentage points quarter-over-quarter in the capital city but decreasing slightly by two percentage points in the southern economic hub, according to Savills Vietnam.

 The prices of residential real estate in Hanoi increase while those in Ho Chi Minh City slighly decreased in Q1/2024. Photo by The Investor/Vu Pham.

The prices of residential real estate in Hanoi increase while those in Ho Chi Minh City slighly decreased in Q1/2024. Photo by The Investor/Vu Pham.

The Savills Property Price Index Q1/2024 showed that the residential index in Hanoi rose to 142.5 points, representing a substantial 37% rise since Q3/2019, with average prices at VND44 million($1,728) per square meter net sellable area (NSA).

Hanoi has prioritized infrastructure development, creating a foundation for sustainable long-term growth. Key projects will unlock affordable housing options, it said.

In Q1/2024, absorption in Hanoi hit 41%, increasing 15 percentage points (ppts) quarter-on-quarter and 27 ppts year-on-year. Grade B accounted for 88% of sales, while 45% of new supply was absorbed. Mega projects completed 71% of sales, reflecting continued demand for outlying areas.

“Confidence and stability are returning to real estate against a background of low bank deposit rates and regulatory reform,” according to Savills Vietnam.

Conversely, HCMC’s index declined two ppts quarter-on-quarter to 123 points due to project suspensions and weakened consumer confidence. Primary prices fell 3% to VND67 million ($2,633) per square meter of net sellable area (NSA).

Absorption dropped by 18 ppts quarter-on-quarter to 23%. New supply was 70% absorbed, while inventory limped its way to absorption of 16%.

Savills Vietnam held that amid diminished transactions and weakened consumer confidence, developers were cautious delivering stable selling prices and increased discounts. Some developers suspended projects to refine sales policies.

Moving to the suburbs - an inevitable trend

According to Do Thu Hang, senior director of advisory services at Savills Hanoi, the trend of moving to the outskirts is inevitable when the inner city sees limited land funds, projects, and supply. The city has been forced to invest in developing belt roads to reduce the load on the inner city and relocate residents to the suburbs.

Currently, there are new urban areas in regions far from the city center with synchronous and quality utilities, she said, adding they could see an increasing number of transactions, as people are more open to moving to suburban areas.

"This demand also comes from people who can work remotely. They do not need to travel much but can still enjoy synchronous utilities and good infrastructure and landscape. In the coming time, the relocation of many educational training institutions and public administrative offices will continue to promote this trend," Hang said.

The expert further said that in the primary market in Q1, the eastern area of Hanoi, including Gia Lam and Long Bien districts, ranked second in the city in the number of apartments sold. This area has a large land fund, with the presence of experienced developers.

In the fourth quarter of 2023 and the first quarter of 2024, among Hanoi’s suburban areas, Nam Tu Liem ranked first in the number of units sold, followed by Gia Lam and Long Bien.

Meanwhile, the trend of moving to the suburbs is also dominating in HCMC, amid scarce land funds and high primary housing prices, Hang stated.

HCMC people are tending to move to neighboring Binh Duong because many real estate businesses have flocked to the province to develop affordable housing. This year, it is expected that Binh Duong, Dong Nai and Long An provinces will account for 96% of the supply of apartments priced under VND5 billion ($196,430) a unit.

Comments (0)
  • Read More
Developer Novaland gets legal hassles cleared for satellite urban area bordering HCMC

Developer Novaland gets legal hassles cleared for satellite urban area bordering HCMC

Major property developer Novoland has had legal obstacles for its Aqua City project cleared after Dong Nai Chairman Vo Tan Duc approved Tuesday a critical adjustment to the southern province’s urban development plan.

Companies - Wed, November 20, 2024 | 2:29 pm GMT+7

Pegatron to quadruple workforce at $800 mln project in Vietnam

Pegatron to quadruple workforce at $800 mln project in Vietnam

Pegatron Vietnam, a subsidiary of Taiwanese electronics manufacturer Pegatron Corporation, is set to soon quadruple the company's workforce for its $800-million project in Vietnam.

Industries - Wed, November 20, 2024 | 2:03 pm GMT+7

Thailand’s WHA greenlighted to invest $55 mln in central Vietnam industrial park

Thailand’s WHA greenlighted to invest $55 mln in central Vietnam industrial park

WHA Group, a leading Thai provider of fully integrated logistics and industrial facilities solutions, has secured in-principle approval from the Vietnamese government to invest in an industrial park in central Vietnam.

Industrial real estate - Wed, November 20, 2024 | 12:01 pm GMT+7

Indonesia, Brazil sign cooperation deals worth $2.65 bln

Indonesia, Brazil sign cooperation deals worth $2.65 bln

Indonesia and Brazil on Monday sealed cooperation agreements worth $2.65 billion in the areas of renewable energy, sustainable agriculture and technology at the Indonesia-Brazil Business Forum held in Rio De Janeiro, Brazil, on the sidelines of the G20 Summit.

Southeast Asia - Wed, November 20, 2024 | 11:57 am GMT+7

Nusantara not yet feasible as Indonesia’s capital city: authorities

Nusantara not yet feasible as Indonesia’s capital city: authorities

Indonesian Minister of Home Affairs Tito Karnavian said Jakarta still holds the capital status despite the enactment of State Capital Law No. 3 of 2022, adding that the capital city will officially be relocated after the president issues a presidential decree.

Southeast Asia - Wed, November 20, 2024 | 11:55 am GMT+7

Malaysia’s Halal industry to make up 10.8% of GDP by 2030

Malaysia’s Halal industry to make up 10.8% of GDP by 2030

Malaysia’s Halal industry is projected to account for 10.8% of the country's GDP by 2030, with an estimated value of RM231.1 billion ($51.7 billion).

Southeast Asia - Wed, November 20, 2024 | 11:48 am GMT+7

Thailand takes more fiscal measures to sustain growth momentum

Thailand takes more fiscal measures to sustain growth momentum

The Thai government is working on a raft of fresh fiscal measures to sustain an economic recovery, foster new foreign investment, and lower the near-record household debt, says Thai Prime Minister Paetongtarn Shinawatra's top aide.

Southeast Asia - Wed, November 20, 2024 | 11:46 am GMT+7

Indonesia named world's most generous country in 2024

Indonesia named world's most generous country in 2024

Indonesia has been the world's most generous country for the seventh consecutive year since 2017, reported local weekly magazine Tempo.

Southeast Asia - Wed, November 20, 2024 | 11:41 am GMT+7

Work begins on Mitsubishi Estate’s $55 mln logistics facility in northern Vietnam

Work begins on Mitsubishi Estate’s $55 mln logistics facility in northern Vietnam

Logistics facility brand Logicross, under Japan’s Mitsubishi Estate, kicked off the construction of its Logicross Hai Phong ready-built warehouse in Vietnam’s northern city of Hai Phong on Tuesday.

Industrial real estate - Wed, November 20, 2024 | 10:58 am GMT+7

French logistics giant eyes to launch electric barges on inland waterways in Vietnam

French logistics giant eyes to launch electric barges on inland waterways in Vietnam

CMA-CGM Group, a French shipping and logistics company, has plans to deploy electric barges, initially on inland waterways in Vietnam.

Companies - Wed, November 20, 2024 | 10:43 am GMT+7

2025 a turning point for Vietnam stock market: broker

2025 a turning point for Vietnam stock market: broker

Vietnam's stock market has struggled to capture the attention of both domestic and foreign investors in recent months, reflected by persistent foreign capital outflows and a steady decline in market liquidity, but next year will be a turning point for the market, says Chen Chia Ken, CEO of Phu Hung Securities JSC.

Finance - Wed, November 20, 2024 | 7:07 am GMT+7

Construction trio keen on building $1.5 bln expanded expressway in southern Vietnam

Construction trio keen on building $1.5 bln expanded expressway in southern Vietnam

Three construction majors in Vietnam are interested in building an expanded expressway connecting Ho Chi Minh City with the Mekong Delta provinces of Long An and Tien Giang for an estimated VND38.6 trillion ($1.52 billion).

Infrastructure - Tue, November 19, 2024 | 8:18 pm GMT+7

Singapore, Germany upgrade relations to strategic partnership

Singapore, Germany upgrade relations to strategic partnership

Singapore and Germany have decided to elevate their ties to a Strategic Partnership to promote closer cooperation in areas of mutual interest such as security, artificial intelligence (AI) and clean energy.

Southeast Asia - Tue, November 19, 2024 | 8:01 pm GMT+7

Thailand’s rice shipment up 20% in 10 months

Thailand’s rice shipment up 20% in 10 months

Thailand exported 8.37 million tons of rice in January-October, a year-on-year increase of 20%, according to the Ministry of Commerce.

Southeast Asia - Tue, November 19, 2024 | 8:00 pm GMT+7

Vietnam’s inconsistent legal framework poses problems for FDI sector: Deep C exec

Vietnam’s inconsistent legal framework poses problems for FDI sector: Deep C exec

Vietnam’s legal framework lacks consistency and the foreign direct investment (FDI) sector will soon face challenges related to the Law on Environmental Protection, says Bruno Jaspaert, CEO of Deep C Industrial Zones.

Economy - Tue, November 19, 2024 | 6:30 pm GMT+7

Vietnam shares sink on extended foreign selloffs

Vietnam shares sink on extended foreign selloffs

Vietnamese equities fell for a fourth consecutive day on Tuesday as foreign traders extended their selling spree.

Finance - Tue, November 19, 2024 | 5:10 pm GMT+7