Solutions for managing apartment real estate prices

Abstract

In recent years, urban housing prices in Vietnam have increased abnormally, particularly in major cities such as Hanoi and Ho Chi Minh City, with average price growth of approximately 33% over two to three consecutive years. The average price of primary apartment units has reached around VND 80 million per square meter, while high-end apartments are commonly priced between VND 100–150 million per square meter, levels that have effectively become prevailing market prices. Such rapid price escalation raises critical questions regarding the distribution of benefits and responsibilities among developers, property owners, the State, and society, as well as potential risks associated with housing market stability. Numerous scholars and real estate experts have conducted in-depth studies analyzing real estate prices and the various factors influencing them. However, the production cost of real estate—an essential component of market prices—and the relationship between real estate production costs and market prices remain insufficiently examined and require further systematic investigation. This paper aims to systematize theoretical and practical perspectives on real estate prices, real estate production costs, and real estate market prices, and to clarify the interrelationships among these price categories. Based on this analysis, the study proposes appropriate management solutions for apartment real estate prices. The research is conducted under idealized conditions, deliberately excluding the influence of other factors that typically affect real estate values, such as economic laws, public policies, legal and institutional frameworks, monetary and fiscal policies, financial and capital costs, selling expenses, risk costs, as well as intrinsic characteristics of real estate including utility, location, and scarcity.