After a period of strong price increases, the Hanoi apartment market is recording clear adjustment signals in the transfer segment. However, this trend is not taking place uniformly across the entire market but mainly appears in apartments bought and sold between investors. Meanwhile, new projects opened for sale by investors still maintain a high price level.
Real-world surveys show that the price decrease is mainly concentrated in the secondary market. The reason is that many investors have a need for liquidity or restructuring cash flow, while selling prices in the primary market are still affected by input costs and land use fees have not shown signs of decreasing.
The general level of apartment prices in Hanoi on the secondary market continuously adjusts, with some places recording a decrease of 10% to more than 15% in a short period of time. The strongest decrease range appeared in projects that were once "hot spots" of price increases in the previous period, both in the East and West of Hanoi.
According to data from Batdongsan. com. vn, compared to February, selling prices at Imperia Sky Park project decreased by 8%, Times City decreased by 8%, Xa La New Urban Area decreased by 5%. Some other projects such as Sunshine City and Trung Hoa - Nhan Chinh also recorded a decrease of 2-3%.
The average asking price for apartments in Hanoi is currently around 85 million VND/m2, down 2% compared to the previous quarter. This development reflects the trend of adjustment in the secondary market when many investors put products for sale.
While selling prices tend to cool down in some projects, the real estate market recorded mixed developments. According to Batdongsan. com. vn, apartment rental demand in Hanoi increased by 6%, while in Ho Chi Minh City (former Ho Chi Minh City area) increased by 24%.
The report also shows that the pressure from reduced home loan interest rates has significantly affected consumer choices. Instead of deciding to buy a house immediately, many people tend to switch to renting and continue to monitor market developments.
Assessing market prospects, Dr. Nguyen Van Dinh - Vice Chairman of the Vietnam Real Estate Association - said that the possibility of house prices falling sharply in the near future is very unlikely to happen. The factors that make up real estate prices are currently all at a high level and there are no signs of significant decrease.
According to Dr. Nguyen Van Dinh, the noteworthy point of the next period is not the sharp decrease in real estate prices but the change in the supply-demand balance. The removal of legal obstacles and restart of many projects will contribute to improving supply, while creating a clearer competitive environment among investors.
In that context, the market is forecast to be strongly differentiated. Projects with favorable locations, complete legal status, good construction quality and synchronous utility systems are still capable of maintaining value. Meanwhile, projects lacking competitive advantages will have to adjust sales policies, increase incentives or accept reduced profit margins to attract customers.
Dr. Nguyen Van Dinh said that the real estate market is shifting from the expected price increase phase to a competitive phase based on product quality and project development capacity. Accordingly, price movements will no longer be simultaneous but will increasingly depend on the real value of each project and each product.
