According to the forecast of real estate service provider and consulting firm Savills Vietnam, Hanoi apartment prices are unlikely to decrease in 2025 and tend to remain stable or increase due to the main supply of high-end and luxury apartments.
Ms. Do Thu Hang - Senior Director of Savills Hanoi Consulting and Research Department - said that in 2024, the supply of apartments in Hanoi will reach nearly 25,000 units, of which in the fourth quarter of 2024 alone the supply will reach nearly 13,000 units, an increase of 351% per year.
Notably, apartments in Hanoi with a selling price of over VND4 billion accounted for 59% of the total successful transactions in the quarter, a sharp increase compared to 2% in 2020.
Meanwhile, apartments with a selling price of 2-4 billion VND account for 40% of the total successful transactions and apartments with a selling price of less than 2 billion VND account for only 1% of the total number of apartments sold in the year, calculated in the entire market.
The Hanoi apartment market has recovered and entered a new cycle. The supply of new apartments in Hanoi in 2024 increased the most in the past 5 years, however, up to 97% of apartments are in the Class B apartment segment (middle-end apartments), concentrated in component projects of the two urban areas Vinhomes Ocean Park and Vinhomes Smart City. These two urban areas account for 89% of the new apartment supply in the entire Hanoi market in 2024.
According to Savills Vietnam, the apartment absorption rate in 2024 will reach 85% of the total market supply, investors no longer worry about inventory.
Forecasting the trend of the Hanoi apartment market in 2025, Savills Vietnam said that new supply in the whole market is expected to reach 25,200 apartments, of which B-class apartments continue to lead, accounting for 88% of market supply.
Along with that, the imbalance between supply and demand due to the majority of supply concentrated in the B-class apartment and A-class apartment segment (high-end, luxury) leads to apartment prices unlikely to decrease in 2025 and tending to remain stable or increase.
Ms. Duong Thuy Dung - CEO of CBRE Vietnam - commented that in 2025, housing prices will not decrease but the growth rate will slow down, only about 5-8% compared to 2024.
According to Ms. Duong Thuy Dung, primary prices continue to increase because although supply has been improved, it is still very difficult to meet demand, most of the new supply is completed at a high standard with large investment costs.
Many real estate experts even predict that the new apartment segment priced under VND50 million/m2 in Hanoi will disappear in the near future.
