Inner-city apartments in Vinh City are experiencing sharp price increases, with limited supply.

At this time, oneapartment projectA condominium project on Phan Boi Chau Street in Vinh City has completed its structural work and is currently undergoing finishing touches, but all apartments have already been reserved. A representative of the project stated: Construction began in October 2022, and the 26-story building is expected to be completed and ready for occupancy by May 2024. However, 100% of the units have already been reserved by customers, with prices exceeding 20 million VND per square meter.².

At another apartment building on Mai Hac De Street in Vinh City, which is currently under construction and has 120 rooms, many units have already been reserved by customers at a price of 20 million VND/m².².

Mr. Nguyen Ngoc Tuan, a resident of Vinh City, said: "My wife and I have been renting for a long time. Due to limited finances, we haven't been able to afford to buy land and build a house, so we decided to borrow money to buy a new 70m² apartment."²"1.4 billion VND. Living in an apartment building also has the advantage of being close to public amenities such as schools, markets, supermarkets, and entertainment areas, making it convenient for families with young children..."

Due to the scarcity of new apartments in Vinh City, many customers are currently flocking to "hunt" for older apartments. Ms. Le Thi Huyen, from Nghi Lam commune, Nghi Loc district, who works at a car dealership in Vinh City, shared: "Since after Tet (Lunar New Year), it has been very difficult to 'hunt' for older apartments. I had to rely on friends to search and introduce me to some options before I finally found an apartment at Vinhomes Quang Trung at a rather high price of 29.5 million VND/m²."²(The previous owner bought it for 23 million VND/m² two years ago)².

According to a real estate agent in Vinh City, the demand for used apartments has increased sharply in the past two years, especially for projects near schools or offices. Whenever a new apartment becomes available for sale, there's a huge influx of people coming to view it. The price of used apartments is currently skyrocketing. Specifically, surveys show that the price of apartments renovated by VinGroup in Quang Trung has increased from 21 million VND/m².²In 2021, the price reached 29.5 million VND/m².².

Right next to it is a resettlement apartment project for households in Quang Trung ward, priced at 14 million VND/m² in 2021.², now the price has increased to 23 million VND/m²²Other apartment projects in Vinh Tan, Trung Do, and Le Loi wards previously had prices of 16 million VND/m².², now priced from 21-23 million VND/m²²…but there were still no rooms left to sell; most of the products sold were resold by households who had placed orders previously.

Surveys show that while apartment prices have increased, this is mainly seen in buildings located in inner-city areas such as Quang Trung, Le Loi, Hong Son, Hung Dung, and Truong Thi wards, which have clear legal documents and good social infrastructure like proximity to markets, schools, parking, and playgrounds. Conversely, apartment complexes further from the city center and in suburban areas have only seen slight price increases.

Mr. Nguyen The Phiệt, Head of the Housing and Real Estate Market Management Department of the Nghe An Department of Construction, said: Currently, Vinh City is implementing the construction of apartment buildings that were approved by the Provincial People's Committee in previous years. These projects are concentrated in Quan Bau and Quang Trung wards, and are currently over 90% complete (in the finishing stage). It is expected that by May 2024, approximately 700 apartment units will be available.

In the coming years, the supply of new apartment units is expected to become increasingly scarce because no new apartment projects are being invested in Vinh City due to the province's refusal to approve the plan, in order to preserve the architectural landscape and reduce pressure on the inner city.