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Apartment prices in Vietnam's capital surge despite market gloom: report

HANOI, July 21 (Xinhua) -- Apartment prices in Vietnam's capital Hanoi increased sharply despite market gloom in the first half of 2023, local media reported on Friday, citing a recent report.

In the period, primary asking prices of 53 million Vietnamese dong (2,200 U.S. dollars) per sq meter net sellable area (NSA) on the apartment market increased by 17 percent year on year, local newspaper Vietnam News reported, citing property agent Savills Hanoi.

Primary prices in the apartment market have increased for 18 consecutive quarters and were 73 percent higher than in the first quarter of 2019, the newspaper reported.

The increase was due to increasing land and construction costs, infrastructure development, and quality improvements, the newspaper reported, citing senior director of Savills Hanoi's Advisory Services Do Thu Hang.

The capital city's apartment market continued to be unbalanced in terms of supply, with a high part of mid- and high-end apartments. Meanwhile, the total supply of affordable apartments decreased to a low level, according to Hang.

The real demand for the apartment segment is still large, but it is for affordable apartments with convenient locations and services, Hang said.

The property market will have more positive changes at the end of this year when the revised Land Law, Housing Law and Real Estate Business Law are expected to be passed along with the state's efforts in removing the obstacles and difficulties of the market, the newspaper reported.

Long-term residential demand will remain high with positive net migration, a growing population and high urbanization, it said.

Between 2023 and 2025, there will be 157,000 new households, it added.