Prices of apartments and land plots are showing signs of slowing down

DNHN - The Ministry of Construction recognizes that apartment prices are still increasing compared to the end of 2021, the price growth of concentrated segments in the first quarter has slowed down and shows signs of slowing down in the second quarter.

The Ministry of Construction has just released a report on housing and real estate market information in the second quarter. Accordingly, this agency said, the market has shown signs of recovery and good development with the total transaction volume of apartments, individual houses and land plots higher than in the same period in 2021.

"However, the supply of commercial housing in this quarter has not improved, especially as the number of newly licensed projects is only about 42% over the same period," the management agency assessed.

Specifically, in the second quarter, the number of completed commercial housing projects was 24 projects with 5,608 units; under construction is 1,091 projects with 327,125 apartments; newly licensed are 29 projects with 6,753 units.

"New supply is limited mainly due to the tightening of legal procedures for projects, in addition, the capital flow to the market has been narrowed due to tight control of credit capital, issuance of bonds, the decline of the bond market, etc.", the Ministry of Construction acknowledged.

Regarding apartment prices, the Ministry of Construction recognizes that apartment prices are still increasing compared to the end of 2021, the price growth of concentrated segments in the first quarter has slowed down and shows signs of slowing down in the next few months. second quarter.

"Commercial housing projects in urban centres have almost no apartments under 25 million VND/m2, this price is only available in a few projects in remote areas," the ministry said.

According to the management agency, the main products in the market are still mid-end apartments. In particular, in Hanoi and Ho Chi Minh City, several projects with special locations and centres have very high advertising and selling prices of up to 120-325 million VND/m2 such as the T-Place project (Hoan Kiem District, Hanoi) cost about 325 million VND/m2; Grand Marina Saigon project (District 1, Ho Chi Minh City) costs about 300 million VND/m2; M Landmark Residence project (Hai Chau District, Da Nang City) costs about 120 million VND/m2...

Regarding the prices of individual houses and land plots, this agency assesses that this segment in the second quarter tends to slow down in localities when activities are restored.

PV