The real estate market saw a substantial increase in housing prices in May, according to a report of the Vietnam Real Estate Association (VNREA).
The report said there were no new housing supplies, leading prices to rise significantly last month.Particularly, prices on the primary market edged up 5-7% in HCMC, compared to the first months of this year, while prices on the second market rose by 10-15%.Sales in the HCMC market declined in May, with 6,400 houses sold, an 18% fall over the same period last year. Consumption of apartments priced at VND2-4 billion per unit dipped a sharp 30% over the same period of last year.
The market also saw strong sales of land lots and townhouses. Buyers of homes in districts 9 and 2 rose significantly, thus causing home prices to leap. Limited land and soaring housing prices will prompt land and house transactions to rise in the next few months, according to VNREA.Housing prices in downtown HCMC inch up almost on a daily basis. Last month, prices of homes in big alleys soared over 15% against the same period last year. The number of buyers increased sharply while the number of successful transactions grew slowly as sellers did not need to be in a hurry.
In Hanoi, demand edged up slightly compared to the previous month as a series of projects were launched for sale. Transactions in the Hanoi market have shown signs of picking up as banks have reduced interest rates.According to VNREA, there were many condo projects with prices standing at VND1 billion or below per unit, which middle-income people could afford to buy.
In Danang, around 3,000 transactions have been done successfully since the beginning of this year, up 75% compared to the same period of last year, according to VNG Real Estate Company (VNG Land).Tran Duc Hien, director of sales and development for VNG Land project, said the real estate market in Danang has remained attractive to consumers in terms of both apartments and land lots.
According to May data of CB Richard Ellis Vietnam (CBRE), Danang ranked third after HCMC and Hanoi in terms of project number with 79 projects in all segments.In the first half of this year, Danang has witnessed the supply of serviced apartments equaling to the total supply in the past five years.
Customers from Hanoi and other northern provinces account for 75-85% of the transactions in Danang with successful deals making up 63%.Danang has many advantages such as good climate and beautiful beaches and is near famous tourist destinations like Hoi An town, My Son sanctuary, and the former imperial capital of Hue, Hien said.Danang’s transport infrastructure has improved considerably. The Danang International Airport receives dozens of international flights from Bangkok, Singapore, South Korea, and China and hundreds of domestic flights a week. This is an edge of Danang over other destinations like Nha Trang and Phan Thiet.
Photo: CBR Investment AG