According to CBRE Vietnam's assessment, 2024 will be the year that records a strong price increase for Hanoi apartments in both primary (investor selling price) and secondary (transfer) types.
By the end of the fourth quarter of 2024, primary apartments in the capital will average VND72 million per square meter (excluding VAT and maintenance fees), up 12% quarterly and 36% annually. This is a figure that surprises many people.
Ms. Nguyen Thi Thuy (52 years old) - an investor in Hanoi - said that in early 2020 she bought two apartments for savings. After more than 4 years, the value of Ms. Thuy's apartment has nearly doubled.
According to Ms. Thuy, in addition to the profit from the apartment if sold, the two houses also generate monthly income from renting.
"After investing money in buying an apartment, I only hoped for a stable price increase, plus the rental income would be very successful. However, I really did not expect the increase like the past time" - Ms. Thuy said.
According to Lao Dong reporters, the apartment segment in Hanoi has increased sharply in price last year and is increasingly beyond the reach of most people. Many low-cost apartment complexes, which opened for sale at 15-20 million VND/m2 a decade ago, have doubled or tripled in 2024.
Even in the outlying districts, the supply of apartments is constantly supplemented but the selling price is up to 70-90 million VND/m2, competing with new projects in the inner city. There are even some projects offering prices of more than 100 million VND/m2 in Dong Anh district. With a budget of 2-3 billion VND, home buyers have fewer and fewer choices in the central district.
Explaining why apartments are no longer scarce but increasingly expensive, Ms. Nguyen Hoai An - Senior Director of CBRE Hanoi Branch - said that most of the newly opened projects are located in existing urban areas with high prices.
When launching a new product, investors will carefully calculate the selling price in relation to the area, so new buildings are unlikely to have a lower price than the previous phase or surrounding projects. Along with that, new high-priced apartments still sell well due to high investment demand, so it is even more difficult for investors to reduce prices when launching new projects.
The recent increase in housing prices has caused many investors to flock to this market. This shows why the liquidity of newly launched projects can sometimes reach 80%, even 90%.
When the market is at its peak, information about investing in different apartment segments begins to appear.
Sharing with reporters, Mr. Tran Minh Tien - Director of OneHousing Center for Market Research and Customer Insight - said that the rapid increase in apartment prices in Hanoi in a short period of time may cause a "temporary shock" reaction, but in the journey to 2030, this is just the beginning of a new growth cycle.
Although the Hanoi housing market is gradually becoming more abundant in supply, in reality, the amount of goods that investors can bring to the market is still quite modest compared to actual housing demand.
According to Mr. Tien, Hanoi has more than 160,000 new urban residents every year, while the housing supply has been congested for a long time. This is an important indicator that housing prices will continue to increase in the future.
Therefore, in the current period, the market not only filters investors, but also investors, if they do not have a good vision and are not steadfast, they can easily be eliminated from the game.
