According to a recent survey by PropertyGuru Vietnam, the price increase of the Hanoi apartment market is still continuing and has tended to be stronger in the past 2 months. This increase was established after about a month and a half of the Hanoi apartment market showing signs of slowing down, with the price level remaining stable.
Experts from this unit said that one of the main reasons leading to this situation is high demand but new supply is very scarce.
According to the Lao Dong Newspaper reporter, in the second quarter of 2024, the number of apartment projects opened for sale is not much. There are only a few projects launching products such as Masteri West Height, Lumi Hanoi... The selling price of apartments in these apartment projects is relatively high, fluctuating between 50-85 million VND/m2.
For example, at the Lumi Hanoi project (Tay Mo Ward, Nam Tu Liem), the price is fluctuating between 65-80 million VND/m2. An apartment that is being booked by brokers has an area of 47m2, including one bedroom and is being advertised for sale at 3.32 billion VND, equivalent to 79 million VND/m2.
At the Masteri West Height project (Tay Mo Ward, Nam Tu Liem), the price ranges from 61-83 million VND/m2. The selling price of this apartment has increased by 26.7% over the past year. An apartment in the project with an area of 54m2, including 2 bedrooms, is being offered for sale at 4.2 billion VND, equivalent to 77.78 million VND/m2.
Also in the Nam Tu Liem area, The Matrix One project is currently priced at 60-100 million VND/m2. The selling price of this apartment has increased by 42.9% over the past year.
In the Western area, the Noble Crystal Tay Ho project has prices ranging from 120 - 238 million VND/m2...
CBRE experts believe that apartment prices in Hanoi in the second quarter increased the most in the past 4 years and are increasingly approaching those in Ho Chi Minh City, when they are lower than 3 million VND/m2. Meanwhile, in the period of 2018-2019, the price difference between the two big cities was about 30%.
According to Ms. Nguyen Hoai An - Senior Director of CBRE Hanoi, the reason for high apartment prices is that the high-end segment accounts for the majority of supply, along with the presence of many southern investors and foreign developers in this market. Not to mention, the number of handed-over apartments is decreasing, about 15,000-20,000 units in the past two years. Meanwhile, in the period of 2019-2020, the number of handed-over apartments was up to 30,000-40,000 units per year.
"The demand for housing is constantly increasing while the supply is limited, contributing to the continued escalation of new apartment prices," said Ms. Nguyen Hoai An.
Meanwhile, OneHousing said that the high-end segment (VND50-80 million/m2) will still account for 70% of the total supply of new apartments in Hanoi in the coming time. The mid-range segment (VND30-50 million/m2) will only account for 5%. By 2025, the Hanoi market will see more luxury apartment projects, with the highest price reaching VND230 million/m2 in the West and North.
Information from the Ministry of Construction shows that in the second quarter of 2024, according to surveys and reports from several major provinces and cities such as Hanoi and Ho Chi Minh City, apartment prices increased by an average of 5% to 6.5% in the second quarter and 25% annually depending on the area and location.
