Illustrative image (Photo: VNA)

Hanoi (VNS/VNA) – The real estate market of Vietnam
showed signs of recovery and more balanced development in the second quarter of this year with an increase in the number of successful transactions of apartments, houses and land, according to the report of the Ministry of Construction.

Absorption rates were high across most product segments as there was no new inventory, and vacancy rates for office and retail space for rent gradually declined.

The ministry said there were almost no affordable apartments with prices ranging from VND 25 million to VND 30 million per sq m in commercial housing projects in central areas. Apartments at these prices were only available in a few projects located in areas away from city centers.

Some projects in this price range were xpHomes in Dan Phuong district, Gemek Premium in Hoai Duc, Xuan Mai Complex in Ha Dong, Hanoi; Dream Home Riverside in District 8, Ehome S in District 9, HCM City; and FPT City Da Nẵng in Ngu Hanh Son, Da Nang.

The mid-range apartment segment, with prices ranging from around VND30 million to less than VND50 million per m², was still the main product in the market. In Hanoi, Keangnam in Nam Tu Liem, Molody Residences in Hoang Mai and Vinhomes Smart City in Nam Tu Liem were a few in this price range while in HCM City there was Sunrise City in District 7 and CityLand Park Hills in Go Vap and Da Nang, Sang Residence in Ngu Hanh Son.

High-end apartments with prices above VND 50 million per sqm were mainly located near centers such as Heritage West Lake in Tay Ho district, T-Place in Hoan Kiem, Grand Marina Saigon in District 1, Vinhomes Golden River Ba Son in District 1 and Landmark Residence in Hai Chau District.

The ministry said house prices were higher than at the end of 2021, but the rate of increase has slowed.

In the second quarter, more than 69,000 transactions and 27,160 homes were placed on the market.

In general, housing supply remained limited relative to demand in the second quarter. There were no new inventories of apartments, houses and land as most of the projects put up for sale had good liquidity.

The limited supply of housing in the first half of this year is due to the tightening of legal procedures for real estate projects. In addition, capital flows into the real estate market have been reduced by tighter controls on credit and the issuance of corporate bonds as well as the decline in the bond market.

Ministry statistics showed that only 29 commercial housing projects with 6,753 apartments were licensed in the last quarter, up 42% from the same period last year.

Mid-range apartments and plots were the most in demand.

Sixteen land projects were completed in the second quarter with a total of 7,324 plots, or 78% more than in the first quarter. More than 200 projects were in progress with 66,596 plots and 10 new projects with more than 4,000 plots obtained licenses during the quarter.

The inventories are mainly high-end apartments and houses, tourist properties and especially projects with poor infrastructure conditions.

To promote the healthy and sustainable development of the real estate market, the ministry said it was necessary to expedite the drafting of the amended housing law and the law on real estate affairs to be submitted to the National Assembly for consideration.

Investment, development, construction, land, tax, credit and real estate auction policies must also be supplemented to remove the difficulties and create favorable conditions for the development of the real estate market./.