Ministry of Construction: Land price has decreased 10-20%

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After the land plot fever at the beginning of the year, so far the market has been basically controlled, the price has decreased but there are few transactions. While property prices are up in most localities, rental prices are falling.

The report of the Ministry of Construction said that after a local land fever situation occurred in some areas and localities at the beginning of the year, up to now, the market has been basically controlled and stabilized. The price drop is about 10-20% compared to the peak period, but the transaction volume in this type is still low.According to the ministry, in the second quarter, real estate transactions in two big cities, Hanoi and Ho Chi Minh City, increased by about 22% compared to the previous quarter. The number of traded products increased by about 26%.

Despite the phenomenon of price decrease, the type of land plot did not have many transactions. Photo: Lam Tung

The average price of apartments and low-rise buildings increased by 1-4% compared to the first quarter. Some projects had a higher price increase of 4-7% than the average. In Hanoi and Ho Chi Minh City, apartment prices increased due to scarcity of supply.

Individual housing in projects in many localities tended to increase slightly compared to the previous quarter, about 3%. Localities such as Hanoi, Hai Phong, Binh Duong, Dong Nai… had higher and more even average prices in the first half of the year compared to the national average. Some projects have higher price volatility, the average level is about 5-9%.

Contrary to selling prices, rental property prices such as apartments and offices tend to decrease quarterly. The average reduction in projects is about 1-3%. For retail space of townhouses in big cities, rental prices decrease by about 10-30%.

The Ministry of Construction also said that at this time, the real estate business in retail and tourism – resort is the most difficult activity.

Source: – Translated by