Although the price of apartments and houses in urban areas in Hanoi has been recorded to increase, establishing new premises in 2020, but in the first quarter of 2021, prices will continue to increase to new and forecasted milestones. will continue to increase in the near future.
Reporting on the Hanoi real estate market in the first quarter of 2021, the Ministry of Construction also said that the price of apartments here tends to increase steadily month by month, which is caused by the scarcity of supply and new projects being opened for sale. . The average apartment price increased by about 5-10% compared to the fourth quarter of 2020. Along with that, the average price of real estate also increased quite high compared to the national average. The average price increased by 5-10% compared to the fourth quarter of 2020.
Data from CBRE also shows that in the first quarter of 2021, the East and the West will continue to be the two main areas where new projects will be concentrated, accounting for 77% of new supply in total. Regarding the selling price of apartments on the primary market in the first quarter of 2021, CBRE said that it was recorded on average at more than 33.5 million VND/m2 (excluding VAT and maintenance fees), an increase of 7 % annually and 3% quarterly.
Ms. Nguyen Hoai An - Director of CBRE Vietnam, Hanoi Branch added: “The positive market sentiment continued in the first quarter, helping to maintain the gap between the number of newly launched units and the number of sold units. at low level. The average selling price in the primary market is also forecasted by CBRE representatives to increase by 4-6% in 2021.
Actual observations show that currently, housing prices in Hanoi have formed a new price level. If 3 years ago luxury apartments were about 35-45 million VND/m2, now this segment has adjusted to 40-60 million VND/m2. Even, apartment prices in some suburban districts such as Hoai Duc and Gia Lam were also pushed up to 30 million VND/m2. For the low-rise shophouse and villa segment, adjacent to Ha Dong, Nam Tu Liem and My Dinh areas, the price has also increased by about 40-50% compared to 3 years ago from 180-200 million VND/m2 to VND 180 million/m2. 300 million VND/m2.
Although a new price level has been established in recent times, real estate prices in Hanoi are expected to continue to increase in the near future due to the impact of the record price increase of steel, and the accelerated development of infrastructure. and especially the scarcity of supply.
Recently, in the report "Residential Real Estate Industry Outlook 2021: Positive Outlook" released, the SSI expert team said that the upward trend of Hanoi real estate in 2021 will continue thanks to the push invest heavily in infrastructure. SSI expects that disbursement will be accelerated in 2021 - this creates a more positive sentiment for the market. Specifically, SSI expert said that in 2020, the disbursement of capital from the Ministry of Transport will reach VND 35,600 billion, up 44% over the same period and is expected to reach VND 46,000 billion in 2021, up 28% compared to the same period last year. 2020.
Besides putting metro lines into operation, according to SSI, the continuous improvement of the inner city road system as well as the transportation system to suburban districts will positively affect the land price level and increase the demand for real estate. movables. Especially in the western area of Hanoi, where a series of large infrastructure projects are about to be completed, such as the ring route 3.5, the roads connecting To Huu with the My Dinh area through the open Le Quang Dao route. wide, Ngo Thi Nham road extends from Quang Trung (Ha Dong) to road 32 to smoothly connect with neighboring provinces… In general, this unit estimates the selling price of apartments in the Hanoi market in 2021. will continue to increase in the near future.
Along with the breakthrough of transport infrastructure, the 45% increase in steel prices to a record level will also continue to push input costs, potentially pushing up the prices of new apartments, shophouses, townhouses, and villas by hundreds of millions. billion dong increase. Specifically, according to experts' calculations, the cost of real estate construction is composed of two criteria: land cost and construction cost. The cost of land usually accounts for 15% for condominiums, 30% for townhouses and 50% for villas. Construction costs (materials, labor, equipment installation, etc.) usually account for about 60% of the construction cost of real estate.
The cost of buying construction steel accounts for about 28% of the cost of building a new apartment building and about 35% of the cost of building a shophouse, townhouse, or villa. Thus, the price of steel increased by 40%, greatly affecting the selling price of apartments formed in the future, the selling price of new villas and adjacent houses. For example, a 100m2 apartment in the mid-end segment has a selling price of about VND 2 billion, adding the impact of steel prices will increase the selling price of VND 160 million to VND 2.16 billion; or a 100 m2 townhouse, currently priced at about 10 billion, will increase the price by more than 1 billion to about 11.1 billion. Even a 200m2 villa with a selling price of 20 billion will increase to about 21.58 billion.
Shophouse Him Lam Van Phuc attracts customers at a time when supply is scarce
Faced with the impact of traffic infrastructure, steel and housing prices in Hanoi are also expected to increase due to the scarcity of supply both in the apartment segment, as well as shophouses, villas and townhouses. Specifically, according to data from the City Department of Construction. Hanoi, in the first quarter of 2021, Hanoi has 10 projects that are eligible for sales with 5,658 apartments and 1,404 low-rise buildings.
Compared to 2019, the supply qualified for sale in the first quarter of 2021 only reached 24.6%. Compared to the same period in 2020, this figure only reached 36.8%. However, most of these products have been offered for sale since the fourth quarter of 2020, a part has not been offered to the market. Some typical projects can be mentioned such as Matrix One apartment building (My Dinh) by MIK, Masteri West Hights - Masteri Smart City Tay Mo developed by Masterise Homes... In the low-rise segment, such as Shophouse project can be mentioned. Him Lam Van Phuc of Him Lam Land in Ha Dong, this is almost the only low-rise project in the West region eligible for sales within the past 6 months.
According to experts, land fund is scarce, projects are congested due to administrative procedures, so it will not be until the end of 2022 that the market will begin to receive some new supply. The scarcity of supply in the context of abundant demand, along with the increase in input costs from the record increase in steel prices will continue to be a strong driving force for Hanoi real estate prices to continue to increase, especially especially in areas with strongly developed infrastructure like the western area.