Paradox of primary apartment prices increasing sharply despite reduced purchasing power

Hà Vy |

New apartment prices in Hanoi continue to rise in the context of abundant supply, while purchasing power and absorption rates show signs of decrease.

The Hanoi apartment market is showing notable developments as new supply increases sharply, mainly concentrated in the high-end and luxury segments. While primary selling prices are still maintained at a high level, liquidity is showing signs of decline.

Data from One Mount Group shows that the average primary apartment price in the central area of Hanoi in Q2/2026 reached 121 million VND/m2. This price level is almost flat compared to the previous quarter but increased by 46% compared to the same period last year.

The above developments mainly come from the fact that supply is concentrated in high-end and luxury projects. In the context of increasing project development costs, investors tend to focus on the quality of finishing and utility systems to attract high-paying customers.

In Q2/2026, the Hanoi market and the Van Giang and Hung Yen areas recorded about 9,300 new apartments for sale, an increase of 6% compared to the previous quarter and 23% compared to the same period in 2025.

In which, the high-end segment accounts for 69% of the total new supply. Luxury supply reached 2,900 units, an increase of 95% compared to the same period last year.

Supply also has a clear differentiation by region. The Western Sector accounted for 41% of the new supply market share in the quarter with 7 newly opened projects, of which 4 projects are located along Ring Road 3.5.

In Van Giang, although new supply decreased by 26% compared to the same period last year, this area still contributes about 18% market share with 4 large projects continuing to open for sale. Apartment prices here are maintained around 67 million VND/m2, about 45% lower than the central area.

Notably, in the context of increased supply and apartment prices maintained at a high level, liquidity is showing signs of decline. According to One Mount Group, in Q2/2026, the entire Hanoi market recorded 7,100 primary transactions, down 3% compared to the previous quarter and down 8% compared to the same period in 2025.

The absorption rate at newly opened projects decreased for the third consecutive quarter, down to 50%. In which, the absorption rate of the high-end and luxury segments decreased by 16 and 27 percentage points respectively.

CBRE's survey also shows a similar development when Hanoi's apartment supply in the first half of 2026 reached the highest level in the past 5 years but liquidity showed signs of slowing down.

In the first 6 months of the year, Hanoi recorded about 16,600 new apartments for sale. Supply is still mainly concentrated in the high-end segment, with apartments priced at 80-110 million VND/m2 accounting for about 30% of newly opened sales, while the segment over 120 million VND/m2 accounts for 35%.

In the second quarter alone, more than 3,000 apartments priced above 120 million VND/m2 were launched on the market in Thanh Xuan, Tay Ho and Dong Anh. The concentration of supply in the inner city area caused the average primary selling price to increase to about 95 million VND/m2, an increase of 12% compared to the previous quarter and 21% compared to the same period last year.

According to CBRE, this increase mainly reflects a change in the supply structure, instead of the entire market simultaneously increasing in price.

Although supply is continuously being supplemented, purchasing power no longer maintains the speed of the 2024-2025 period. In the second quarter of 2026, the market recorded more than 5,800 apartments traded, equivalent to about 68% of the newly opened sales volume, significantly lower than two years ago.

Ms. Nguyen Hoai An - Senior Director of CBRE Hanoi Branch - said that the general level of lending interest rates is still a major factor affecting buyers' decisions. Instead of being willing to use financial leverage to buy a house right when the project opens for sale as before, buyers now spend more time considering their ability to repay debts, price levels and market prospects before spending money.

Hà Vy
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Như Hạ |

The real estate market in Q2/2026 recorded improved supply but still deviated when high-end apartments dominated.

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Bình Nguyên |

New apartment prices in the first 6 months of 2026 continued to increase in many areas, while market liquidity decreased sharply.