At the 2024 real estate market report and 2025 outlook event held on the morning of January 8 in Hanoi, Mr. Vo Huynh Tuan Kiet - Director of CBRE Vietnam's housing marketing department - said that in 2024, the real estate market witnessed a clear change. Especially in Hanoi, the apartment segment has developed positively. The supply of apartments in Hanoi reached more than 31,000 products, far surpassing Ho Chi Minh City with only more than 5,000 products - the lowest level since 2014.
Notably, more than 80% of apartment supply in Hanoi is in the high-end housing segment, similar to the Ho Chi Minh City market in 2022. This shows a trend of shifting from mid-range to high-end in the capital. Meanwhile, the absorption rate in both cities exceeded the supply, creating a stable development momentum.
Apartment prices in both cities are also expected to increase sharply in 2024. In the primary market, apartment prices in Hanoi increased by 36%, while in Ho Chi Minh City they increased by about 24%. In the secondary market, both cities recorded an equal increase of 26%.
In the fourth quarter of 2024, Ho Chi Minh City had a big change when a number of luxury and super luxury products were offered to the market, raising the average price threshold to 76 million VND/m2. While the Hanoi market is about 72 million VND/m2.
“2024 is the year that will witness a huge increase in prices in the apartment segment, especially in Hanoi. The market has a lot of room for new products as well as a lot of room for price adjustments,” said CBRE experts.
The development trend in Hanoi is focused on the eastern region and areas far from the center, with many new projects gradually expanding to the suburbs. Meanwhile, Ho Chi Minh City is also focusing on the eastern region, especially with newly launched high-end projects.
For townhouses, the market witnessed a clear difference in supply and selling price between the two major cities. In 2024, the supply of townhouses in Hanoi was higher than in Ho Chi Minh City, with a positive absorption rate. However, the average selling price in Hanoi was only about VND220 million/m2, lower than Ho Chi Minh City (VND310 million/m2) because projects in Hanoi were mainly located in areas far from the center.
The inventory in Ho Chi Minh City is higher than in Hanoi, with more than 8,000 apartment products and the inventory of townhouses exceeds that of apartments. Meanwhile, Hanoi only has more than 3,000 apartment products in inventory.
It is forecasted that by 2025, the apartment supply in Hanoi will reach 31,200 units, increasing to 32,000 units by 2026, with prices expected to increase by 6% this year.
On the investor side, sharing about the strategy of accessing land funds and project development trends, Mr. James Lai - General Director of Gamuda Land - emphasized that location is a key factor in finding land funds, especially in Hanoi - where land funds are limited within the radius of Ring Road 3. Gamuda Land has expanded its search to areas near Ring Road 4, focusing on developing large projects of 20-30 hectares to build a comprehensive, convenient residential community.
Meanwhile, Mr. Duong Truong, Managing Director of Northern Region and Residential Segment - Frasers Property Vietnam, believes that the new Land Law will create a clearer legal corridor, promoting land fund development through auctions. In addition, investors are also looking to potential provinces and cities to expand opportunities.
