House prices increase by 15% at the end of 2021

The apartment market report at the end of 2021 of the real estate consulting firm Colliers Vietnam said that as soon as the blockade was lifted after months of isolation, the supply of apartments in Ho Chi Minh City increased again. selling prices also escalate in the months of October, November and December. A series of large domestic investors such as Vinhomes, Nam Long, Novaland, Hung Thinh, Masterise and even foreign enterprises such as Capitaland, Keppel Land all simultaneously launched products in the fourth quarter.

During the peak sales season at the end of 2021, the average selling price of apartments in Ho Chi Minh City increased by 10-15% over the same period last year. The new shopping cart is located in the East and South of Ho Chi Minh City, where there is potential for infrastructure development. This quarter, the Ho Chi Minh City apartment market also appeared a line of super luxury apartments in Thu Duc City. The growth rate of the primary selling price of apartments in Saigon was recorded at 5-10% higher than in Hanoi and Da Nang.

The high-end segment leads the Ho Chi Minh City apartment market, accounting for about 60% of the total primary supply in this urban area. Luxury houses grew rapidly not only in the central area of Saigon but also gradually moved to the fringe districts of the center.

Currently, Thu Duc City, east of Ho Chi Minh City, is becoming the new capital of the luxury and super-luxury segment. Supply from suburban districts such as Binh Chanh and Nha Be also improved after months of isolation, mainly apartment projects in the mid-end segment.

Meanwhile, affordable (cheap) apartments are completely inferior to the mid-high-end and luxury segments. This unit forecasts that, in 2022, the situation of luxury, super-luxury and high-end houses overtaking cheap houses will continue, new supply will cover the East of Ho Chi Minh City.

In the North, in the last 3 months of the year, the Hanoi market recorded an increase of 5-10% in apartment prices over the same period, the supply was distributed in projects located in the West and East of Hanoi. Similar to Ho Chi Minh City, high-end apartments are the focus of the northern market and also record luxury product lines.

In the central region, Da Nang is less affected by Covid-19 than Ho Chi Minh City and Hanoi. However, buyers of projects here mainly come from the two big cities in the South and the North, so project opening activities in Da Nang are delayed until Hanoi and Ho Chi Minh City reopen. The real estate market in Da Nang kicked off from the fourth quarter of 2021, recording a 5% increase in the asking price of apartments over the same period.

According to Colliers, in the next 12 months, apartment prices are expected to continue to increase due to the escalation of land prices and construction costs. In addition, public investment is promoted from 2022 in a series of infrastructure projects that will directly affect the real estate market, promoting the growth of diversified supply in the near future.