Vietnam ranks second as the most sought-after emerging property market in the Asia Pacific, according to a recent survey by property consultancy CBRE.

The survey, which polled investors in the region in the last two months of 2023 about their investment plans for 2024, has India the first place and Thailand in third place.

Residential assets (especially multifamily and built-to-rent) logged the strongest uptick in interest, particularly among investors considering value-added strategies. Industrial and offices are still the top property types among core investors, it said.

Demand for industrial real estate due to the supply chain management and logistics in Vietnam, is also relatively high. Investors also have a demand for renting and buying discounted properties whose owners face legal and financial difficulties.

CBRE’s 2024 Asia Pacific Investor Intentions Survey was conducted in November and December 2023.

Condominium market prices in both Hanoi and Ho Chi Minh City maintain an upward trend this year, VNA cited data from CBRE Vietnam.

Condominium primary selling prices in both cities remained high, especially in Hanoi, with primary prices recording rapid growth mainly due to the large quantity of new supply in the high-end segment.

The number of high-end condominium units accounted for 75% in Hanoi and 84% in HCM City in 2023’s total new launches. On the other hand, the mid-point segment, with selling prices more budget-friendly to the majority of the population, accounted for only a small proportion, while the affordable segment has completely disappeared in both markets in the past few years.

Dung Duong, executive director of CBRE Vietnam, said, "In 2023, we observed a reversal in the trend between the Hanoi and HCM City residential markets, with the Hanoi market now following a similar trajectory to that of HCM City about three years ago."

Particularly, at the end of 2023, the average primary selling price in Hanoi reached VND 53 million (USD 2.155) per sqm (excluding VAT and maintenance fees), up 4.6% quarter on quarter and 14.6% year on year. This was the primary price recorded in HCM City during the 2020-2021 period.

On the contrary, the primary prices for condominiums in HCM City leveled off at around more than VND 61 million (USD 2.480) per sq.m in 2023, down 1.7% year on year.

HCM City's office leasing market has regained the pre-pandemic absorption level. Photo: VNA

Vo Huynh Tuan Kiet, associate director of CBRE Vietnam's Housing Project Marketing, said at the end of 2023, real estate companies had many policies on reducing selling prices, with a condition that buyers must implement faster payment to receive the house. This was a business strategy and the decreasing trend was only for some projects in HCM City.

In the secondary market, the selling price of condominiums in Hanoi and HCM City went on opposite trends, according to CBRE Vietnam's report on the Hanoi real estate market in the fourth quarter of 2023, released on January 9.

Secondary prices in Hanoi in the fourth quarter of 2023 continued to increase from the previous quarter, reaching around VND 33 million (USD 1.340) per sq.m, up 5% year on year. Limited new supply, while newly launched projects setting high prices contributed to boosting the demand in the secondary condominium market in Hanoi.

In contrast, secondary prices in HCM City recorded VND 45 million (USD 1.830) per sq.m for the condominium market and VND 140 million (USD 5.690) per sq.m for the landed property market on average, down 5% and 2% year on year, respectively.

During 2023, the secondary market in HCM City went through several price adjustments, yet the price fall gradually slowed towards the last quarter.

"Continuing this momentum, in 2024 we also expect that the overall price level in the housing market in Hanoi and HCM City will tend to be stable. Especially, the apartment housing segment in Hanoi will continue the increase in prices in 2024," said Nguyen Hoai An, senior director, Hanoi Branch, CBRE Vietnam.

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