Apartments in Hanoi are scarce in the affordable segment
On April 17, Savills Vietnam announced the report "Overview of the real estate market in the first quarter of 2025" updating the latest developments of the market in Hanoi, focusing on the housing, commercial and hotel segments.
Regarding the real estate market and apartment segment in Hanoi, Savills Vietnam said that the new supply of apartments in the first quarter reached 7,940 units, down 39% quarter-on-quarter but nearly double compared to the same period last year.
Primary supply reached 11,168 units, down 33% quarter-on-quarter and 14% year-on-year. The transaction volume reached 7,914 units, down 41% quarter-on-quarter, but up 49% year-on-year. The B-class segment dominates with 99% of the number of apartments sold. The new supply absorption rate reached 84%.
The average primary selling price continued to remain high, reaching VND79 million/m2, up 5% quarter-on-quarter and increasing sharply by 32% year-on-year. The shortage of affordable apartments has not improved.
Major projects such as Vinhomes Ocean Park, Smart City and Global Gate account for 89% of new supply and 90% of transactions, showing that demand is still focused on urban areas with full amenities, even though they are far from the center.
It is expected that in 2025, the Hanoi market will offer an additional 7,400 new apartments, mainly B-class apartments (accounting for 67%). From 2026 onwards, about 80,900 apartments from 99 projects will be launched on the market, with the three areas of Hoai Duc, Dong Anh and Hoang Mai contributing more than half of the supply.
Villa and townhouse segment increases sharply, transactions are differentiated
The low-rise housing segment recorded positive signs of recovery thanks to increasingly complete infrastructure, creating conditions for expansion to the suburbs and neighboring provinces. In the first quarter of 2025, the newly opened supply reached 2,319 units, bringing the total primary supply to 4,004 units from 17 projects.
Over the past 5 years, low-rise housing prices in Hanoi have continuously increased: villas have increased by an average of 29%/year, townhouses have increased by 22%/year, while commercial townhouses have increased more modestly - about 11-16%/year.
The total supply of offices in Hanoi is currently at 2.33 million m2 of floor space from 193 projects. In Ho Chi Minh City, this figure is 2.8 million m2 from 394 projects. Gross rental prices in Hanoi increased slightly by 1% quarterly and 3% annually. However, rental capacity decreased by 5 percentage points per year, down to 82%, due to the impact of new supply coming into operation at the end of 2024.
Notably, the Grade A office recorded negative rental areas, while the Grade B increased by 96,700 m2, mainly due to the adjustment of the classification of some buildings.
Ms. Hoang Nguyet Minh - Senior Director of Commercial Leasing Department, Savills Hanoi - commented: "The market is currently leaning towards tenants. Therefore, Class A office investors should focus on retaining customers instead of increasing prices".
According to the report of Savills Vietnam's "Real Estate Market Market" of Savills Vietnam, the Vietnamese economy in the first quarter of 2025 recorded impressive growth. GDP estimated to increase by 6.9% - the highest level in the first quarters since 2020. The total import -export turnover reached US $ 203 billion, of which exports increased by 11% to US $ 102.84 billion, imports increased by 17% to $ 99.68 billion. The total registered FDI capital reached US $ 11 billion, up 35% over the same period.
Regarding the business environment, Vietnam recorded 72,900 newly established and returning to operation in the first quarter, an increase of 19,9% annually. However, the number of enterprises withdrawing from the market is still high, reaching 78,800 enterprises, an increase of 7%. The stock market continues to expand with 388,100 new accounts, bringing the total number of accounts to 9.7 million.
