Savills Vietnam's real estate report published in February 2025 said that in Hanoi, apartments recorded the highest number of openings since 2020. New supply in the fourth quarter of 2024 reached 12,972 units, a sharp increase of 146% quarter-on-quarter and 351% year-on-year.
Primary supply reached 16,629 units, up 58% quarter-on-quarter and 40% year-on-year. In 2024, the total new supply will reach 24,996 units, the highest in the past 5 years.
The sales situation in the fourth quarter of 2024 was recorded as quite exciting with 13,401 units sold, an increase of 96% quarterly and 340% annually. New supply accounts for 83% of the number of apartments sold and has reached an absorption rate of 85% thanks to clear legal documents and reputable investors. The primary offering price reached 75 million VND/m2, up 9% quarter-on-quarter and 29% year-on-year.
Savills Vietnam believes that the supply shortage in the Hanoi market is improving. However, the selling price is still high, reflecting the large demand of the market. Housing demand is mainly driven by domestic buyers, with long-term demand supported by a positive net immigration rate and urbanization.
The prospect in 2025 is that the new supply is expected to include 25,200 apartments. Group B continues to lead, accounting for 88% of future supply; large urban projects will account for 70% of the market share. From 2026 onwards, about 70,000 apartments with 91 projects will be opened for sale.
The two districts of Dong Anh, Hoai Duc and Hoang Mai are expected to contribute to 52% of the market share of apartment supply.
Although the Hanoi real estate market this year has many positive signals, the Government has also issued close instructions on increasing supply, but in the short term, Hanoi real estate prices are unlikely to decrease.
According to Dr. Nguyen Van Dinh - Vice President of the Vietnam Real Estate Association, President of the Vietnam Real Estate Brokers Association, primary selling prices continue to increase and show no signs of stopping because most of the new supply continues to be completed at a high standard with high investment costs, especially land-related costs.
In particular, project development costs have continuously increased in recent times. Investors face rising prices for construction materials, labor costs and strict legal regulations. This has caused apartment prices to increase, but investors cannot lower prices to create opportunities for buyers.
Therefore, the increase in apartment prices in Hanoi has slowed down, but it is difficult to reduce selling prices this year.
Ms. Nguyen Hoai An - Director of CBRE Hanoi - said that the apartment market in Hanoi is gradually relieving the "thirst" for a shortage of housing supply. Prices will not decrease but will no longer increase "hotly" like in the recent period, the increase is about 5-8% compared to 2024.
