Building materials, property prices rose in Q1: construction ministry

The survey, based on data from eight cities and provinces, also said construction materials prices were up 1-3.5 percent from the previous quarter.

Land prices appreciated the most in the real estate sector, increasing by 2.85 percent month-on-month in Hanoi and 3.6 percent in HCMC.

Prices of apartments and independent houses rose by by 1.53 and 2.24 percent in Hanoi, and 2.48 and 2 percent in HCMC.

Reports by property consultancy also pointed to a rising trend attributed to increasing supply scarcity and construction costs and tardy legal procedures.

CBRE said in the first quarter new properties in Hanoi cost 13 percent more than last year.

Cushman & Wakefield estimated that the prices of apartments in HCMC increased by nearly 30 percent.

The ministry reported that the prices of cement were up 1-3 percent during the quarter or VND30,000-50,000 (US$1.31-2.18) a ton higher than in the fourth quarter of last year.

In the period steel prices went up by 3.5 percent to VND18,600-20,600 per kilogram, it added.

Prices of other construction materials changed marginally, but are expected to rise sharply due to the surging gasoline prices and scarcity caused by the Russia-Ukraine conflict.