The real estate market in 2024 is experiencing unpredictable developments. In particular, some segments such as land and apartments are increasing sharply in price, not only in the inner city but also in the suburbs.
In particular, the price movements of apartments in Hanoi and Ho Chi Minh City over the past year have shown surprising factors. If before 2024, apartment prices in Ho Chi Minh City were always 20-30% higher than in Hanoi, then by the end of November 2024, apartment prices in Hanoi suddenly increased sharply, with the average price level significantly exceeding that of Ho Chi Minh City.
Assessing the general situation of the real estate market in the two largest cities in the past two years, Mr. Dinh Minh Tuan - Business Director of PropertyGuru Vietnam - commented that the real estate market in Hanoi and Ho Chi Minh City has clearly differentiated in the past two years.
According to the expert, regarding the differentiation between the North and the South with two major cities Hanoi and Ho Chi Minh City, the average real estate selling price in Hanoi has increased significantly in most segments. In November 2024, the selling price of apartments in Hanoi reached 61 million VND/m2, surpassing Ho Chi Minh City (55 million VND/m2).
"For the first time in nearly 10 years, the Hanoi apartment market has begun to surpass the HCMC market. Normally, the Hanoi apartment market is always about 30% lower than HCMC. Until May 2024, Hanoi apartment prices suddenly surpassed and surpassed very quickly, increasing by more than 20% compared to HCMC. And this trend is still continuing," Mr. Tuan shared.
After a period of strong price increases, apartment prices in Hanoi are quite high. Most of the new projects launched on the market today are in the mid- to high-end segment. The market lacks diversity, the supply of new projects is mainly concentrated in a few projects and belongs to large investors.
According to a survey by Lao Dong Newspaper reporters, most of the newly opened supply is in the high-end and luxury segments, lacking products in the mid-range and affordable segments. Newly opened commercial housing with prices below 35 million VND/m2 no longer appears, the market no longer has primary products in this segment. Even higher prices, averaging 38-45 million VND/m2, only appear in one project in Ha Dong district (Grand Sunlake). The average price of primary products in Hanoi is currently quite high, around 60-120 million VND/m2.
Regarding the sharp price increase of the apartment segment, Ms. Nguyen Hoai An - Senior Director of CBRE Hanoi branch - said: "This is almost the first time that Hanoi apartments have increased in price so quickly in such a short time."
Analyzing the reasons for the rapid increase in apartment prices in Hanoi in a short period of time, CBRE experts said that the real estate consumption habits of Hanoians have begun to change and apartment products have become more popular.
In addition, many foreign investors as well as large enterprises with potential are now participating in the market. The diversity of products along with changes in consumer tastes make the market more competitive and developed in a short time.
In addition, this person pointed out a number of other reasons such as Hanoi's infrastructure advantages, stable macroeconomic context, low interest rates, the development and general potential of Hanoi's real estate market...
