According to OneHousing, in the second quarter of 2024, the new supply of apartments in Hanoi reached a record of approximately 8,400 units, with a sales volume of 8,300 units, marking the highest level since 2021.

New supply of apartments in Hanoi in the second quarter of 2024 will reach about 8,400 units

According to data from OneHousing Market Research and Customer Insight Center, in the second quarter of 2024, the new supply of apartments in Hanoi was about 8,400 units, a 97% increase compared to the previous quarter, nearly equal to the entire new supply of apartments in 2023 (about 8,600 units).

New Supply Approaching 2023's Total

Among this, high-end apartments accounted for 61%. The luxury segment's market share has grown significantly, reaching 36%, mainly concentrated in the western areas of Hanoi. Meanwhile, the supply of mid-range apartments was only about 2.3%.

In this quarter, the sales volume was approximately 8,300 units, 4.5 times that of the same period in 2023 and a 43% increase compared to the second quarter of 2022. In terms of price, the primary selling price of apartments in Hanoi in the second quarter of 2024 was 65 million VND per square meter, an increase of 25% compared to the first quarter and a 30% increase compared to the same period in 2023. This increase is primarily due to the new supply largely coming from the high-end and luxury markets.

Trần Minh Tiến , director of the OneHousing Market Research and Customer Insight Center, stated that both supply and sales have reached the highest levels since 2021, indicating a strong recovery in the Hanoi apartment market, particularly for some high-end and luxury projects, which have sold out quickly at relatively high prices, showing very high market demand for apartments.

Three Main Reasons for Market Recovery

To explain this phenomenon, Trần Minh Tiến pointed out three main reasons. First, moderately priced apartments are favored by investors due to their ease of rental and ability to generate monthly cash flow, along with good appreciation potential, leading to frequent sell-outs during initial launches.

Second, the real estate loan interest rates remained low in the second quarter. Developers widely adopted installment payment plans and long-term interest support policies, stimulating housing demand.

Third, the government has expedited the implementation of the Land Law, Housing Law, revised Real Estate Business Law, and Credit Institutions Law, providing a stable and sustainable transaction environment for the market.

“With the strong growth of the Hanoi apartment market in the second quarter of 2024, along with the upcoming enforcement of three real estate-related laws, this will be a significant driving force for the market in the second half of 2024,” Trần Minh Tiến stated.

Secondary Market Still on the Rise

In terms of the transfer market, the second quarter saw secondary transaction volumes reach 23,000 units, a 40% increase compared to the first quarter of 2024, with residential transactions making up about 57%.

In the first half of 2024, the total transaction volume of secondary high-rise apartments was approximately 15,900 units, with Gia Lam district holding the highest market share at 19%, followed by Nam Tu Liem and Ha Dong. The average transaction price across the market was 50 million VND per square meter.

Looking ahead, Trần Minh Tiến believes that the supply in Hanoi for 2024 will reach about 22,000 units, higher than the 2022-2023 period. Additionally, the market will continue to welcome new real estate projects in 2025-2026.

Notably, “Vietnam's economy in the first half of 2024 grew higher than expected. The GDP in the first half of 2024 increased by 6.42% compared to the same period in 2023, higher than in the first quarter of 2024 and above the World Bank's forecast for the year. The CPI has been rising continuously since 2023, reaching about 4%, close to the government's target of 4% to 4.5%. The Fed and the ECB are expected to reduce interest rates at the end of the year, which will help ease inflation pressures in late 2024. If international conditions are favorable, and if the CPI and exchange rates remain low, the economy in the second half of 2024 will continue to create favorable conditions for the real estate market,” Trần Minh Tiến said.

Source: Vi Anh/Diendandoanhnghiep.vn