Market Trends of Vietnam Real Estate & Mortgage Industry
Residential Segment Experiencing Rapid Growth in the Market
In Hanoi, property prices continued to increase in Q4 2023 due to limited supply and high market demand in anticipation of better road infrastructure.
In Q4 of 2023, there were approximately 4,500 apartments on the market in Hanoi, with a total supply of approximately 11,400 units.
According to CBRE, this was the lowest supply level in 10 years, and most of the available units were classified as luxury apartments. On a quarterly and yearly basis, the average price for new apartments increased by 7% and 14%, respectively, reaching around VND 50,800,000 (USD 2,100,000) per square meter.
The average price per square meter for an apartment in a resettlement building in a Slot A10 residential area of Nam Trong Yen district was between VND 42 million and VND 47 million per square meter (from USD 1,723 to USD 1,928 per square meter).
In Thanh Xuan district, the average per square meter price for mid-range apartments ranged between VND 45 million and VND 60 million (from USD 1,846 to USD 2,461 per square meter).
Apartment projects under construction saw the highest prices, ranging from VND 60 to VND 65 million per square meter (USD 2,461 to USD 2,666). Villa and luxury townhouses were also in high demand, with prices having been projected to reach VND 470 million per square meter (USD 19,280).
Increase in Commercial Developments Driving the Market
Industrial and logistics have become one of the fastest-growing sectors over the last five years, with more institutional investors entering the space.
GLP announced the launch of its new venture, GLP Vietnam Development Partner, with a total investment of USD 1.1 billion across six logistics center projects covering 900,000 sq. m.
Cold Storage and Data Centre Gaw Capital Partners entered the cold storage and data center space in the first six months of 2022, acquiring land in HCMC’s High-Tech Park for the development of an IDC Level 3 Data Centre.
Lineage Logistics LLC, the world’s largest and most innovative temperature-controlled industrial real estate investment trust (REIT) and logistics solutions provider, shared its ambition to expand business in Vietnam.
Diversification of investment asset classes has allowed investors to expand their horizons beyond major metropolises such as Hanoi, Ho Chi Minh City, and Danang. In Dong Nai, Logos Property Services (LPS) partnered with Manulife Financial to invest more than USD 80 million in a new logistics project covering 116,000 sq. m.
