According to OneHousing Center for Market Research and Customer Understanding, the supply of new apartment openings in Hanoi in the second quarter of 2024 reached approximately 8,400 units, an increase of 97% compared to the first quarter of 2024 - and nearly equivalent to the amount of supply. New apartments opening throughout Hanoi in 2023 (approximately 8,600 units).
Of these, the high-end apartment segment accounts for 61%. Luxury supply increased its market share strongly, reaching 36% of the entire market and mainly concentrated in the western area of Hanoi. Meanwhile, the supply of mid-range apartments only reached nearly 2.3%.
Of these, the two mega urban areas Vinhomes Ocean Park and Vinhomes Smart City account for more than 90% of the entire Hanoi market. Vinhomes Smart City recorded new high-end and luxury projects simultaneously opening for sale. The number of Vinhomes Ocean Park apartment sales also increased by 194% over the previous quarter and increased by 674% over the same period in 2023, mainly from high-end projects (Masteri Waterfront, Zurich, Beverly...).
The primary selling price of Hanoi apartments in the second quarter of 2024 will reach approximately 65 million VND/m2, up 25% compared to the first quarter of 2024 and up 30% over the same period in 2023, due to mainly high new supply. class and luxury.
According to Mr. Tran Minh Tien, Director of OneHousing Center for Market Research and Customer Understanding, supply and consumption have both reached the highest level since 2021, a sign that the Hanoi apartment market is recovering. Strong recovery, especially in some high-end - luxury projects with relatively high prices, were also sold out in a short time, showing very high market demand for the apartment segment.
Accordingly, there are 3 main reasons to explain. Types of apartments with easy liquidity such as studios and 1-bedroom apartments have been popular with investors recently because they are easy to rent with monthly cash flow and have good price increase potential, so always sold out during the first opening period.
In addition, real estate loan interest rates in the second quarter were still maintained at a low level with loan packages ranging from 50 - 80% of the apartment value. Sales policies that extend payment schedules from 2-5% of the apartment value per installment along with a long interest rate support period are also applied by investors, helping customers stretch payment cash flow and at the same time stimulate interested in buying a house.
It can be mentioned that the Lumiere Evergreen project, the investor supports the interest rate and principal debt grace period to extend the period even after handing over the house.
In addition, the Land Law, Housing Law, and Real Estate Business Law (amended) taking effect from August 1, 2024 have partly helped the market feel secure in transactions in a stable and sustainable manner.
“With the strong growth of the Hanoi apartment market in the second quarter of 2024 and the three real estate-related laws that will take effect in the near future, it will be an important driving force for the market in the second half. 2024", Mr. Tien commented.
