A Savills Q3 2022 real estate market report shows that new supply of apartments for sale in Hanoi rose 235 per cent quarter-on-quarter and 69 per cent year-on-year. In addition to improved supply, apartment transactions also grew positively, reaching 3,605, up 61 per cent quarter-on-quarter and 49 per cent year-on-year. Class B apartment transactions accounted for 64 per cent.
As most activities have returned to normal following Covid-19, rents on apartments in many areas of Hanoi have increased by 10-20 per cent and are continuing upwards. Foreign tenants are expected to be a driving force for the development of the serviced apartment segment.
According to Batdongsan.com.vn, the number of real estate listings nationwide increased 14 per cent in May but the level of interest was down 11 per cent compared to the same period last year. Both interest in and sales of landed housing have showed signs of slowing, while the rental segment has seen figures rise.
According to a CBRE report, the total supply of apartments in the center of Ho Chi Minh City during 2021 fell sharply compared to previous years, standing at 13,000. The lowest supply is seen in landed housing. High demand has pushed up the price of villas and houses in the city center.
The Prime Minister has signed Decree No. 69/2021/ND-CP, effective from September 1, on the “Renovation and reconstruction of apartment buildings”, replacing Decree No. 101 from 2015. According to the Ho Chi Minh City Real Estate Association (HoREA), more than 2,000 old apartment buildings around the country that are 50 years of age or older are in need of renovation or reconstruction and the endeavor will be costly.
Apartments have been receiving the most attention in Vietnam’s real estate market in recent times, despite the impact of the pandemic, with high absorption rates coming from high demand for housing and investment. Apartment prices, however, are facing rising pressure as supply has been falling.
