Throughout 2024, the housing market, especially the apartment for sale segment in Hanoi, has recorded strong interest from buyers.
Also in the past year, the apartment market began to be considered a type of asset to store. According to Ms. Do Thu Hang, Senior Director, Consulting and Research Department, Savills Hanoi, if in the past people bought apartments simply to live in or invest in renting, now they also expect an increase in the price of the apartment.
The Hanoi real estate market as well as the whole country's market in 2025 is expected to enter a new development cycle. According to Ms. Hang, after each cycle, the market will be upgraded and become more professional and synchronized than the previous cycle. This cycle will aim for sustainable development thanks to strong support from the completion of the legal framework and strong macroeconomic growth factors.
Important real estate-related laws have been passed and come into effect earlier than expected in 2024, such as the Law on Real Estate Business, the Land Law, the Housing Law, and most recently the approval of the Hanoi Capital Planning for the period 2021 - 2030, with a vision to 2050, creating conditions for people and investors to see more clearly the orientation and shape of Hanoi's urban space development.
In addition, the land price list issued at the end of the year and taking effect immediately has helped developers have a clearer picture, and relevant agencies will also have important calculations for project development in 2025.
“In this new market cycle, the completion of the legal framework will create stronger competition, leading to a new purge of products and investors. If in the past, investors only needed capital and projects to be able to participate in the market, now, investors must build reputation, experience and financial potential to be able to develop projects,” said Ms. Hang.
The difference in this market is the direct participation of foreign investors. If in the past, foreign investors were mostly in the position of understanding the market, now they have participated more deeply, through investment cooperation activities and joining hands with large domestic investors to develop projects. This is expected to overcome the previous weakness of the market in mobilizing foreign capital.
Regarding products, Ms. Hang assessed that in the new cycle, each market will have different product lines. Investors also need to set the goal of taking customer satisfaction as the criterion for product development, including class C apartments or social housing.
According to Ms. Hang, the supply of class B apartments will continue to account for the majority of the Hanoi market in 2025, while the class C segment and social housing will both see improved supply.
The housing supply in the coming time will come from large investors in the suburban metropolises outside the belt, projects that ensure legality, quality, are fully equipped with utilities as well as sustainable standards. Even the trend of new supply with more affordable costs can be concentrated in the areas surrounding Hanoi when the price list in the inner city as well as the areas surrounding the belt is at a high threshold.
