According to the latest report of the Ministry of Construction in the third quarter of 2024, apartment prices in Hanoi continued to increase in both new and old projects. The price level of new projects increased by about 4-6% quarterly and 22-25% annually, especially in some areas, prices increased locally by about 35% to 40% depending on the location compared to the previous quarter.
Notably, in the market segment of affordable apartments (with selling price under 25 million VND/m2), there are almost no transactions and products for sale; mid-range apartments (with price from about 25 million VND/m2 to under 50 million VND/m2) still account for a high proportion of transactions and supply in the market, the remaining order is luxury and super luxury apartments (with price over 50 million VND/m2).
For example, in Hanoi, Vinhomes Ocean Park project in The Zurich subdivision is priced at around 46-55 million VND/m2; Lumi Prestige project is priced from 69 million VND/m2 in Tay Mo ward (Nam Tu Liem district); The Ninety Complex project is priced at around 60-75 million VND/m2 in Dong Da district; The Sapphire - Vinhomes Smart City project is priced at around 47-61 million VND/m2 in Nam Tu Liem district.
The mixed-use housing project 107 Nguyen Tuan Viha Complex costs about 75-97.2 million VND/m2 in Thanh Xuan district; The project of high-rise housing, trees and parking lots on plots of land with symbols: HH4, HH5, CL2, CL3, CX and P1 of Khai Son City project in Ngoc Thuy ward (Thuong Thanh, Long Bien) costs from 50-68 million VND/m2.
Data from the OneHousing Center for Market Research and Customer Insights shows that in the entire Hanoi market, there were about 83,000 residential real estate transactions in the first 9 months of 2024. Primary transactions, including high-rise and low-rise, accounted for 27%; while the remaining 73% were secondary transactions, including residential land, apartment transfers and low-rise houses.
Notably, in the newly opened apartment market, although the end of the third quarter of 2024, the average price reached nearly 80.5 million VND/m2 (including VAT and maintenance fees), an increase of 7.6% compared to the previous quarter. The average price of transferred apartments reached nearly 55 million VND/m2 (including all service fees and taxes according to the law), an increase of 4% compared to the previous quarter.
Referring to this content, Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association - emphasized that construction costs, materials, labor, financial costs, and management costs have all increased in the past two years. At the same time, the high cost of investment, construction, and labor is an objective reason why the price of new apartment projects is increasingly expensive.
Many real estate experts believe that one of the reasons for the high price of both new and old apartments is due to the scarce supply, most newly opened projects have high fixed prices.
Notably, when launching new products, investors will have to carefully calculate the selling price in relation to the area, so new buildings are unlikely to have prices lower than the previous phase or surrounding projects.
