Hanoi Apartments Set New Pricing, Averaging 56 Million VND/m2

The real estate market in Hanoi continues to witness strong demand for apartments, with limited supply. According to a market report by CBRE, a leading real estate services provider, the absorption rate of apartments in Hanoi has been positive since the beginning of the year, although the supply is still limited. Most of the new supply is expected to be available in the last quarter of 2024.

In the first quarter of this year, the market recorded a limited supply of residential properties in key areas such as Hanoi and Ho Chi Minh City. Specifically, Hanoi’s new supply is mainly from high-end apartment projects in the western part of the city, totaling over 2,300 apartments and 30 low-rise houses being newly listed for sale.

However, compared to the same period in 2023, the number of new apartment listings in Hanoi has increased by 11% in the first quarter of 2024. Nevertheless, it has not yet returned to the level of 3,000 – 4,000 new listings seen in the first quarter of 2021 and 2022.

In contrast, Ho Chi Minh City only saw approximately 500 apartments being offered for sale, primarily from projects that were already launched in 2023. Among them, only about 80 apartments are in the high-end segment in the southern part of the city. This is the lowest number of units offered for sale in a quarter in the past 15 years, accounting for only about 17% compared to the same period last year.

In terms of liquidity, the absorption rate of apartments in Hanoi remains positive despite the majority of new supply being launched in the final quarter. The total number of apartments sold in the first quarter reached over 2,000 units, which is equivalent to the figure recorded in the first quarter of last year. On the other hand, the landed property market recorded the sale of nearly 300 units, a 73% decrease compared to the same period last year.

Many projects launched in this quarter have seen positive sales rates. For example, an apartment project in Nam Tu Liem district in Hanoi sold nearly 700 units, achieving a sales rate of around 80%. Additionally, a low-rise project in Ha Dong district, which was launched at the end of last year, has sold almost 90% of its inventory.

In Ho Chi Minh City, the limited new supply has resulted in a lower number of apartments sold compared to the same period last year and the previous quarter. The total number of apartments sold in the first quarter of this year was approximately 600 units, a 74% decrease compared to the fourth quarter of 2023 but still higher than the number of new units launched.

The sales rate of projects launched in the first quarter reached around 80%, thanks to the relatively stable prices compared to previous launches and prices considered to be reasonable for the general market in the respective areas.

According to CBRE’s Senior Director, Nguyen Hoai An, the highlight of the residential real estate market in both regions during this quarter comes from ongoing projects that have been receiving strong bookings.

In Hanoi, a project in the Tay Mo ward of Nam Tu Liem district received around 4,500 bookings in just one quarter, surpassing the initially expected number of units for sale. This project, along with many other recently launched apartment projects in Hanoi, has attracted significant attention not only from buyers in the northern region but also from buyers in Ho Chi Minh City, as the apartment prices in Hanoi are currently considered more attractive than in Ho Chi Minh City.

In Ho Chi Minh City, a high-end apartment project in the Mai Chi Tho Boulevard area of District 2 has recorded a relatively positive number of bookings, with prices starting from 125 million VND/m2.

Average Apartment Price in Hanoi: 56 Million VND/m2

CBRE reports that the selling prices of apartments in Hanoi and Ho Chi Minh City have shown mixed trends in the first quarter. By the end of the first quarter of 2024, the primary market price for apartments in Ho Chi Minh City reached 61 million VND/m2, unchanged compared to the previous quarter and a decrease of approximately 3% compared to the same period last year. Developers have continued to maintain attractive sales and payment policies to increase liquidity for their products.

In contrast, the majority of new supply in Hanoi is concentrated in the high-end segment, driving up the average selling price of primary apartments. The average selling price in Hanoi has reached 56 million VND/m2, a 5% increase compared to the previous quarter and a 19% increase compared to last year.

This quarter has seen a significant narrowing of the price gap between primary apartments in Ho Chi Minh City and Hanoi. From a 35% difference observed at the end of 2022, Ho Chi Minh City’s primary market prices now only exceed the average primary prices in Hanoi by about 10%.

“The interest in apartment products in Hanoi is increasing, while the market for villas and townhouses in Hanoi has not shown much activity. After the boom period in 2021-2022, a significant number of investors have shifted their focus to apartment projects,” said Nguyen Hoai An.

CBRE forecasts that in 2024, Hanoi will see more than 12,000 new apartment units launched for sale, an increase of nearly 20% compared to 2023. The continuous focus on high-end segments is expected to keep primary apartment prices in Hanoi relatively high, with a potential 10% increase year-on-year.