CBRE, a real estate services company, reported that 2024 marked a strong price increase for Hanoi condominiums, both for primary (developer prices) and secondary (resale) markets.

 

By the end of Q4/2024, the price of primary condominiums in the capital averaged VND 72 million per square meter (excluding VAT and maintenance fees), an increase of 12% quarter-on-quarter and 36% year-on-year. CBRE considered this the strongest price increase since 2016 in the Hanoi condominium market.

 

In terms of segments, Hanoi had only one mid-range project launched in Thach That District, with a positive absorption rate. The remaining projects were mainly high-end segments from large urban areas in Nam Tu Liem District and Gia Lam District. Expensive condominiums were also expanding in suburban areas such as Dong Anh District and Van Giang (Hung Yen).

 

The continuous launch of expensive new projects has pushed up the secondary market prices. CBRE noted that the condominium prices in Hanoi are now approaching those in Ho Chi Minh City, at VND 48 million and VND 49 million per square meter, respectively.

 

Similarly, the prices of older condominiums in Hanoi have continued to rise compared to earlier this year, increasing by 5% quarterly. Compared to the same period last year, the price increase reached over 26%, the highest ever recorded.

 

The price surge of Hanoi's apartments has also been noted by many research agencies. According to JLL, a real estate services company, the average price of high-end condominiums in Hanoi was USD 3,124 (approximately VND 79 million) per square meter, increasing by more than 12% year-on-year.

 

For instance, a project like The Nelson Private Residence (Ba Dinh District) is listed at USD 5,124 (approximately VND 128 million) per square meter, with a payment schedule in six phases.

 

On the secondary market, JLL reported that the average price of older condominiums was about USD 2,834 (VND 70 million) per square meter, a rise of more than 17% compared to the same period last year.

 

According to VnExpress, the condominium segment in Hanoi has seen significant price increases over the past year and is increasingly out of reach for most residents. Many affordable condominium projects, which were priced between VND 10-15 million per square meter a decade ago, have surged by 40-50% compared to 2023.

 

Even in the suburban districts, the supply of condominiums continues to grow, but the prices now range from VND 70-90 million per square meter, competing with new projects in the city center. Some projects are even offering prices exceeding VND 100 million per square meter in Dong Anh District. With a budget of VND 2-3 billion, homebuyers now have fewer options in the central districts.

                   

 

 

CBRE stated that the number of new condominiums launched in Hanoi in 2024 is three times higher than the previous year, exceeding 30,900 units. This is also the highest annual supply since 2020.

 

Similarly, OneHousing, a real estate service platform backed by Masterise Homes and Techcombank, reported that the total supply of new apartments in Hanoi in 2024 will reach around 35,000 units, higher than the previously forecasted 22,000-24,000 units. This platform noted that the absorption rate for newly launched projects is high because most buyers are investors, in addition to those buying for residential purposes.

 

Explaining why condominiums are no longer scarce but increasingly expensive, Ms. Nguyen Hoai An, Senior Director at CBRE Hanoi, stated that most new projects are located in existing large urban areas, where the price level has already been set high. When launching new products, developers carefully consider the price comparison with neighboring areas, making it difficult for new projects to be priced lower than previous stages or surrounding projects. Moreover, high-priced new condominiums continue to sell well due to the large investment demand, making it hard for developers to reduce prices when launching new projects.

 

Mr. Pham Duc Toan, CEO of EZ Property, who has observed the real estate market for nearly 15 years, added that although the supply has increased in number, it is less diversified, focusing on a few projects or urban areas, which has caused the prices to keep rising.

 

He said that since the beginning of the year, the new inventory launched in the Hanoi market has been the next phases of urban areas or projects with secondary land transfer rights, mostly concentrated in the West and East of the city. The number of newly approved projects is still very limited. The lack of competition in the market makes it hard for prices to decrease.

 

 

Ms. An predicted that the number of new apartments in Hanoi will reach more than 31,000 units, higher than last year.

 

The new supply is expected to expand to areas in the South (Hoang Mai District), East (Long Bien District), and West (Dan Phuong District). The high-end and luxury segments are expected to dominate.

 

"The abundant new supply will help stabilize prices, with an expected average increase of 6-8% year-on-year," said CBRE's Senior Director.