According to Savills Vietnam's Q3/2024 real estate market data, in Hanoi, new supply in Q3/2024 increased sharply by 95% QoQ and 178% YoY to 5,265 units. Lumi Hanoi and QMS Top Tower projects launched 3,488 units, equivalent to 66% of the market share, the remaining 34% came from the next phases of four current projects.
Primary supply increased 2% QoQ to 10,497 units, but decreased 47% YoY.
In Q3/2024, the number of units sold reached 6,840, up 35% QoQ and 226% YoY. Grade B apartments led the way, contributing 98% of the units sold. New supply accounted for 65% of the units sold and had an absorption rate of 85%. These projects benefited from legal transparency before launching for sale and were developed by reputable investors.
Ms. Do Thu Hang - Senior Director, Consulting and Research Department, Savills Hanoi said that the primary price of apartments in Hanoi reached 69 million VND/m², up 6% quarterly and 28% annually.
Although the new real estate laws have come into effect, their impact will be delayed. In addition, the new laws have many stricter legal regulations, causing investment costs in projects to increase, leading to an increase in real estate prices. It is forecasted that in the short term, housing prices, especially apartment prices, will continue to increase due to limited new supply on the market.
In the first 9 months of 2024, apartments over 4 billion VND accounted for 70% of the number of units sold, a sharp increase from 2% in 2020. Apartments from 2 - 4 billion VND accounted for 29% of the market share and only 1% of apartments were priced under 2 billion VND.
The average secondary price reached VND51 million/m², up 10% quarter-on-quarter and 41% year-on-year.
Since 2020, average secondary prices have increased by 17% per year, with Grade C increasing the most at 20% per year, followed by Grade A increasing by 16% per year and Grade B increasing by 15% per year.
Nam Tu Liem and Cau Giay accounted for 63% of primary supply and 78% of transactions in the quarter, with 92% of the supply in the West being Grade B apartments. The West will supply 21,000 apartments from 28 projects, equivalent to 17% of future supply. The proximity to the new city center and modern amenities drive demand in this area.
Ms. Do Thu Hang said that in the fourth quarter of 2024, it is expected that 9,700 apartments will be opened for sale, of which 88% will come from the next phases of major projects.
From 2025 onwards, approximately 110,000 units from 106 projects will be launched. Grade B will continue to lead with 54% of future supply. Dong Anh, Hoai Duc, Gia Lam and Hoang Mai will contribute 62% of the market share.
"Apartments in Hanoi are still attractive thanks to their more suitable total value, versatility and profit potential compared to other investment channels," said Ms. Hang.
