AsemconnectVietnam - The real estate market is showing signs of recovery, thanks to the amended laws that were passed in early 2024 and effective early August 2024, as well as infrastructure developments and large supply from mega projects in the next few years.

Thirteen projects will supply a total of 2,951 dwellings by the end of 2024, the majority of which will be in Dong Anh district with 34% of future stock, Ha Dong follows with 19% and Hoai Duc with 16%. The report also stated that in the first half of the year, there were 128 new dwellings, up 38% quarter on quarter but down two% year on year.
New stock came from two existing Ha Dong projects, An Quy Villa with 54 villas and Solasta Mansion with 51 villas, while An Lac Green Symphony in Hoài Đức supplied 12 new townhouses and Him Lam Thuong Tin in Thuong Tin district launched 11 new shophouses. Primary stock of 608 dwellings came from 16 projects, decreasing by 9% quarter-on-quarter and 24% year-on-year. Villas remained the main product with a 39% share of the available stock.
The industrial real estate markets stable
In the second quarter of 2024, the industrial real estate markets in HCMC, Danang, and Hanoi showed stability in rents, occupancy rates, and new supply. Key developments during the quarter focused on investment activities and the implementation of FDI projects within industrial parks (IPs).
In Hanoi, industrial rental prices and occupancy rates remained unchanged quarter-on-quarter, at $214/sqm/term and 86%, respectively. Due to high rents and low vacancy in Hanoi, and completed interprovincial infrastructure, neighboring provinces such as Bac Ninh, Bac Giang, Hung Yen, and Vinh Phuc saw quarterly rent growth from 5% to 7%, depending on the location.
Bac Ninh maintained its position as a northern industrial hub, highlighted by big projects such the as 14.26-ha, $383 million circuit board plant of Foxconn group in Nam Son-Hap Linh IP, and a semiconductor equipment and materials factory of Amkor in Yen Phong II-C IP, with an additional investment of $1.07 billion.
Construction commenced on the 600-ha VSIP Lang Son IP and the 190-ha VSIP Ha Tinh IP. Hanoi approved investment policies for Dong Anh IP and Phung Hiep IP spanning nearly 475 ha in the last quarter.
For years without new supply, the industrial real estate market in HCMC has reached its peak in average rents at $230/sqm/term and average occupancy rates at 90%. The city is actively resolving legal obstacles for projects in Thu Duc city, Cu Chi and Binh Chanh districts to address land shortages, while striving to renew its industrial land banks. These efforts are aimed at attracting investments, particularly in the technology sector, to raise the production value per square meter of land.
In early May, Korean corporation Hyosung announced plans to invest in a large-scale data center in Ho Chi Minh City Hi-Tech Park. During the second quarter, Korean and Singaporean corporations including LG, Lotte, Hyosung, and CapitaLand announced upcoming investments in manufacturing facilities in Vietnam.
In the first half of 2024, a total of 10 new IP projects were approved, comprising 2,804 ha, indicating abundant supply in the long term.
Hanoi villas price rose
The Hanoi real estate market in the first half of this year saw increases in villa and townhouse prices, although the market was still slow, according to a Savills report.
In Hanoi, new villas in high-end market projects showed prices increasing by 9% quarter-on-quarter to VND178 million (US$7,007) per sq.m, said the report released on July 11.
Townhouse prices decreased by 2% quarter-on-quarter to VND188 million per sq.m, with higher priced units already sold and only affordable units remaining.
Shophouse prices increased by 3% quarter-on-quarter to VND288 million per sq.m due to the reduced availability of cheap shophouses and price adjustments.
Primary prices remained high with less to incentivise the secondary market. Secondary villa prices were 8% lower than primary prices, while townhouses were 5% cheaper.
Sales in the second quarter fell by 40% quarter-on-quarter, but rose by 5% year-on-year, reaching a total of 111 dwellings, and quarterly absorption was only 18%. Newly launched properties were 48% absorbed, fell by 15 percentage points quarter on quarter and 3 percentage points year on year.
The majority of primary transactions were still in Ha Dong district with 61%, due to infrastructure projects aimed for completion such as Le Quang Dao road expected to operate in the last quarter of this year. Hoang Mai and Hoai Duc districts each followed with 14% and Thuong Tin had 9%.
Hanoi condominium supply rises sharply, followed by HCMC
Hanoi's condominium market witnessed new launches in the second quarter, including Capital Elite, The Sola Park, Lumi Hanoi, and Imperia Sky Park. The average absorption rate reached 70-80%. Average primary selling prices rose by 7-10% at projects in the west of the city, faster than the 2-3% increase of those in the east.
Therefore, demand and investment potential are concentrated in this area. Looking forward, with large land banks and developed infrastructure, many large-scale urban projects will be developed in the western part of Hanoi, namely Vinhomes Smart City and Vinhomes Green Bay. Vingroup also recently announced an investment in a 268-ha smart urban area in Dong Anh district, Hanoi.
T.Huong
Source: Vitic