According to data from the One Mount Group Center for Market Research and Customer Insight, in the first quarter of 2025, Hanoi recorded about 18,300 real estate transactions, down 14% over the same period in 2024.
The main reason comes from the sharp decline in the residential land segment, especially in the inner city of Hanoi such as Hoang Mai and Dong Da.
Although transactions have decreased, according to One Housing, residential land prices in many suburban districts such as Long Bien and Gia Lam have increased by more than 30% over the same period.
A survey on some real estate trading sites also shows that the current price of residential land has increased by 30-40% after only 1 year.
For example, the current price of real estate in Long Bien district fluctuates between 100-135 million VND/m2 (depending on the location and status of the house), an increase of about 30-40% after 1 year. Also here, a 52m2 house with a car entrance is being advertised for sale at 6.2 billion VND, equivalent to 125 million VND/m2.
Explaining the sharp decline in residential real estate transactions, according to One Mount Group experts, the price level of residential real estate in Hanoi remains high (vacuum from 4-5 billion VND). This figure is beyond the affordability of most real buyers.
In particular, in the context of income not keeping up with price increases, most customers tend to postpone home buying plans or seek opportunities in more remote areas. In addition, when seeing prices anchored at too high a threshold, many investors began to shift investment capital.
Instead of continuing to pour capital into the inner city market with high prices and low liquidity, many investors have shifted to neighboring provinces such as Hung Yen, Bac Ninh... to anticipate information about planning and administrative mergers.
In addition, many investors are also reserved about economic fluctuations, they do not want to spend money immediately, and have the mentality of waiting for prices to decrease.
Mr. Le Dinh Chung - General Director of SGO Homes Real Estate Investment and Development Joint Stock Company - commented that the Hanoi market has actually shown signs of moving sideways and decreasing slightly in the last 2 months of 2024. Since then, there has also been a trend of investors looking for opportunities outside of Hanoi.
Real estate prices in Hanoi are too high, causing investors to withdraw from the market and shift their search to neighboring areas. Their view now is to accumulate land in the suburbs instead of short-term surfing, wanting to take the lead in development when the infrastructure is completed, especially in industrial parks. In which, legal factors are considered the key.
Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association (Vars) - also said that the reason why many customers "turn around" with residential land in Hanoi's inner city is because the price of this segment has now reached its peak.
According to Mr. Dinh, in recent times, all real estate segments in Hanoi have increased sharply in price, including residential land. For example, Hanoi residential land prices also recorded a similar sharp price increase at the end of 2021. By mid-2022, when the market was in difficulty, the price of this type had decreased but it was still small.
Experts recommend that, to avoid getting lost in the current "matrix" of selling prices in Hanoi, buyers should choose a reputable unit for reference. At the same time, buyers should spend time carefully study the selling prices of similar houses in the same area to consider and spend money to buy.
