Many Hanoi Apartment Projects Increase Prices by 20% in the First Two Months of the Year
According to a report by PropertyGuru Vietnam, the average selling price of apartments in Hanoi has increased by 17% in the first two months of this year compared to the same period in 2023. Several projects have seen price increases of more than 20% in just one year. For example, Royal City, The Pride, My Dinh Song Da – Sudico Urban Area, and Sun Grand City have all experienced price hikes of 33%. Meanwhile, Mipec Rubik 360 and Vinhomes West Point have seen a 28% increase in prices, and Dai Thanh Apartments and Seasons Avenue have witnessed 27% and 26% increases, respectively.
According to Nguyen Quoc Anh, Deputy General Director of PropertyGuru Vietnam, the price hikes in Hanoi’s apartment market are not artificial but rather reflect the supply-demand relationship. In Hanoi, the supply is not sufficient to meet the demand, leading to price increases. Anh predicts that apartment prices in Hanoi will continue to rise if the demand exceeds the previous peak.
Meanwhile, in Ho Chi Minh City, apartment prices have also shown an upward trend, albeit at a lower rate of around 4% compared to the same period in 2023. The city’s apartment market has experienced multiple adjustments in recent years, resulting in a high price level. Therefore, the prices in Ho Chi Minh City are expected to remain relatively stable in the near future.
In addition to apartments, various other types of real estate have also seen an increase in demand in the first months of 2024 compared to the same period last year. Searches for individual houses have increased by 27%, while searches for townhouses have risen by 15%. The demand for villas and land has also increased by 12% and 9%, respectively.
Le Bao Long, Strategy Director of PropertyGuru Vietnam, believes that these changes will lead to widespread growth in the market in terms of prices, quantity, and quality of new projects. The standards and development capabilities of developers will also be raised due to stricter regulations imposed on them. Additionally, the rights of real estate consumers will be better protected.
Given the current situation, Quoc Anh advises investors and buyers to closely monitor the market trends in the upcoming period. If the level of interest in apartments in the following months exceeds the peak of August 2023, it may result in further price increases. However, if the demand cools down, apartment prices will be adjusted accordingly.