Hanoi real estate market is recording many positive signals with the heat of the apartment, land and private house segments. In particular, apartment prices are continuously increasing, transaction volume and interest are increasing sharply in both primary and secondary markets.
According to the Lao Dong Newspaper, the affordable apartment segment is completely absent from the market, and mid-range apartments are also increasingly scarce. Newly launched apartment projects all have starting prices from 60 million VND/m2 or more, and some high-end apartment projects in the suburbs of Hanoi are even offered for sale at hundreds of millions of VND/m2, much higher than high-end apartment projects in the inner city.
The strong growth of the apartment segment reflects the heat of the market, but also poses major challenges in housing accessibility for people, especially those with average and low incomes.
Commenting on the apartment segment, Mr. Vo Huynh Tuan Kiet - Director of CBRE Vietnam's housing marketing department - said that more than 80% of the apartment supply in Hanoi belongs to the high-end housing segment. In the fourth quarter of 2024, the primary selling price of apartments in Hanoi continued to increase sharply, reaching an average of VND 72 million/m2. This is the highest price ever recorded in the capital's real estate market, up 36% over the same period last year and 12% over the third quarter of 2024.
“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.
In early 2024, the market started with an average price of about VND65 million/m2. However, after only two quarters, the price exceeded VND68 million/m2 and continued to climb in the last months of the year. New projects launched during the year focused on the high-end segment in areas such as Nam Tu Liem, Cau Giay and Gia Lam, Dong Anh with prices regularly exceeding VND70 million/m2.
Not only in the primary market, the secondary market also recorded excitement, when many investors took advantage of the price increase to sell, further pushing the market heat up.
The main reason for this price increase comes from the imbalance between supply and demand. New supply continues to be limited, especially in the mid-range and low-end segments, leaving buyers with few options within a reasonable price range. At the same time, high-end and luxury projects are increasingly taking up a large proportion, leading to a significant increase in the average price of the market.
In addition, input costs for projects, including construction materials, labor and financial costs, are all increasing amid inflation and fluctuating interest rates. The market's recovery sentiment after the 2022-2023 slump is also an important factor stimulating buying and selling demand.
The rising price of apartments is creating great opportunities for investors, but at the same time it also poses significant challenges for homebuyers, especially those with low and middle incomes. In this context, developing more affordable housing projects and controlling selling prices are urgent solutions to ensure sustainable development for the Hanoi real estate market.
