Real estate market is gaining balance: ministry

The absorption rates were high in most product segments while there were no new inventories, and the vacancy rate of office and commercial space for rent gradually decreased.

The ministry said there were almost no affordable apartments with prices from VND25 million to VND30 million per sq.m at commercial housing projects in central areas. Apartments at these prices were only available in a few projects in areas away from the city centres.  

Some projects at 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.

Mid-end apartment segment, with prices of about VND30 million to less than VND50 million per sq.m, 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 some at this price range while in HCM City, there were Sunrise City in Distict 7 and CityLand Park Hills in Go Vap and in Da Nang, the Sang Residence in Ngu Hanh Son.

High-end apartments with prices of over VND50 million per sq.m were mainly located near centres 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 housing prices were higher than the end of 2021, but the increase rate slowed.  

In the second quarter, more than 69,000 transactions and 27,160 housing units were put on the market.

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

The limited housing supply in the first half of this year is due to the move to tighten legal procedures for real estate projects. Besides, the capital flow in the real estate market was narrowed down from the tightening of control on credit and corporate bond issuance as well as the decline of the bond market.

The ministry’s statistics showed that only 29 commercial housing projects with 6,753 apartments were licensed in the past quarter, equivalent to 42% of the same period last year.

Mid-end apartments and land plots had the highest demand.

Sixteen land plot projects were completed in the second quarter with a total of 7,324 plots, 78% higher than the first quarter. More than 200 projects were underway with 66,596 plots, and 10 new projects with more than 4,000 plots got licences in the quarter.

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

To promote the healthy and sustainable development of the real estate market, the ministry said that it was necessary to speed up the drafting of the amended Law on Housing and Law on Real Estate Business to submit to the National Assembly for review.

Policies of investment, planning, construction, land, tax, credit, and auctioning real estate business must also be completed to remove difficulties and create favourable conditions for the development of the real estate market.