[NEWS] - Will the price and demand for mid-high-end apartments continue to increase?

The annual seminar on assessing the prospects of the Hanoi apartment market from 2023 to 2025, announced the following report: The forecast for the mid-range - high-end apartment segment in Hanoi in 2023 was revealed to be held on April 12, many people said that although the real estate market in Hanoi was still gloomy, transactions were quiet and supply gradually became more limited, demand, as well as the market price, remained intact uptrend.

According to Mr. Nguyen Van Dinh - PCT of the Vietnam Real Estate Association, citing the market report of the Real Estate Brokers Association, in 2022, in the Hanoi area, there will be about 16,000 real estate products opened for sale at a rate of absorption reached more than 47%, equivalent to 7,600 transactions.

Supply and transactions of mid- and high-end apartments account for the highest percentage in the market’s supply-transaction structure. This is a segment that attracts a large number of visitors thanks to its stable growth. The primary selling price of all types of apartments is about 50 million VND/m2, increasing by 10-15% year-on-year.

In the first 3 months of this year, the market’s transactions were low but could remain at par with 2022. It is forecasted that from the second quarter of 2023, transactions are expected to have a better uptrend.

As for the price, it is forecasted that the low-end segment will not decrease and even increase, while the cost of mid-high-end apartments that previously had a virtual uptrend will be adjusted to the actual value.

“Mid-range - high-end apartments in Vietnam in general and Hanoi in particular still have great potential, especially when the investment in the transport system in the expanded urban areas will continue to be promoted, People’s income is gradually increasing, especially FDI inflows into Vietnam are becoming more and more powerful, which has pulled a large number of experts, engineers, senior personnel ... into the Vietnamese market and There is a great demand for renewable energy living space,” said Mr. Nguyen Van Dinh.

Commenting on the trend of apartments in the mid-range - high-end segment, the Head of the Strategic Projects Department, Vietnam Real Estate Research Institute, Ms. Bui Thi Huong shared, although the new supply is on a declining trend. The Hanoi real estate market still recorded the number of high-end apartments consumed in the fourth quarter of 2022 at approximately 1,600 units, down about 52% compared to the previous quarter.

The number of mid-range apartments sold in the fourth quarter of 2022 was approximately 700 units, down 45% compared to the previous quarter. However, the price of luxury apartments reached more than 60 million VND/m2, an increase of 2.2% compared to the previous quarter and 16.6% compared to the same period last year.

Regarding the prospects of the mid-and high-end apartment market in 2023, Ms. Huong said, the primary supply is equivalent to the period of 2020 - 2022, approximately 14,000 - 15,000 primary apartments. Which, 80% of the supply mainly comes from projects in the West and East, of which 50% comes from the megacities in these two areas. Apartment consumption is forecasted to continue to fluctuate from 10,000 to 12,000 units, a slight decrease compared to the period of 2020 - 2022.

The percentage of people buying to live in will tend to increase in 2023. Projects with reasonable prices, invested by reputable investors, with many living facilities and near major roads will continue to collect revenue. attract a large number of real home buyers in 2023.

“The selling price of mid-high-end apartments will not decrease and tend to increase slightly in the period of 2023, the rate of price increase will show signs of slowing down compared to the period of 2020 - 2022. Many investors will continue to bring offer attractive incentive policies, benefiting the cash flow of homebuyers in 2023, "said Ms. Huong.

In-depth analysis of prices and issues of price reduction and loss reduction in the apartment market, according to Professor Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, the price of mid-range and high-end apartments is forecasted to be no signs of a decrease.

“Many people think that the apartment is cutting down the price, but I think this is not true. Condominiums only decrease when in areas and areas where the project is not attractive such as without synchronous infrastructure, located far from the center, and more specifically, that is where the investors are too big. boldly hoarding goods, blowing prices. This is the story of investors blowing prices, not the story of the whole market," said Professor Dang Hung Vo.

According to Professor Dang Hung Vo, a series of problems in the current real estate market lead to a shortage of supply, and a lack of capital in the market, leading to an increase in apartment prices. The product group of low-end, high-end apartments with ready-made goods, full legal status, and the best infrastructure location will prevail, the price will still increase and be well received by customers.

As of the end of April, with much support from the State Bank and other banks in the interest rate reduction policy, it has partly created more confidence to recover by the end of 2023. Despite facing many financial difficulties, however, the real estate products in the mid-to-high-end segment have not shown any signs of decreasing in price, and the demand for buying has not stopped. Indochina Holding is one of the units capable of raising capital from funds with the lowest interest rates, but in addition, the company also has BT, PPP, and BOT projects and several bad debt projects at organizations credit DATC and VAMC. To support small and medium enterprises to overcome difficult times and open up good investment opportunities.

Hoang Yen (Collection source)