Revealing the Most Attractive Real Estate Segment in Hanoi Right Now
The real estate market in Hanoi has experienced a decline in both listing volume and overall interest, according to the February 2024 market research report by Batdongsan.com.vn. Specifically, the number of listings has decreased by 30%, while the level of interest has dropped by 14% compared to January. This can mainly be attributed to the Lunar New Year holiday. However, compared to the first two months of 2023, the market sentiment has been more positive, with a 13% increase in interest.
Decrease in Listings and Interest
Amongst all property types, private houses, townhouses, and apartments have seen the steepest decline in listing volume, with decreases of 35%, 34%, and 30% respectively. However, the level of interest in apartments has only decreased by approximately 8%, the lowest among all property types. Apartments have also regained attention earlier than other property types after the Lunar New Year holiday.
Source: Batdongsan.com.vn
Rapid Recovery in Rental Real Estate
While the sales market has experienced a decline, the rental market in the real estate sector has quickly rebounded after the Lunar New Year holiday. Although the number of rental listings has decreased by 19% compared to January, the level of interest in rental properties has increased by 15%. Among these, rental shops have seen the strongest increase in interest, with an average growth of 24% compared to January. Shared accommodation, townhouses, and private houses for rent have also experienced respective increases of 17%, 14%, and 12%. This indicates that workers have returned to major cities to search for rental accommodations and business spaces immediately after the holiday.
The rental real estate market has observed a significant increase in interest
Decline in Hanoi’s Real Estate Market
In Hanoi’s real estate market, all property types have experienced a decrease in listing volume, with an average decline of approximately 28% compared to January. Specifically, private houses have seen the most significant drop of 35%, followed by apartments at 33%, and townhouses at 28%. Search volume in February has also decreased by 12% compared to the previous month.
Apartments remain the most sought-after property type in Hanoi after the Lunar New Year, despite a slight reduction in interest. High-end apartments (priced above 50 million VND per square meter) and mid-range apartments (priced between 30-50 million VND per square meter) have continued to increase in price, by around 4% and 3% respectively compared to January.
It is noteworthy that although the number of listings for rental properties in Hanoi has decreased by approximately 13% compared to the previous month, search volume has increased by 15%. This represents the strongest increase in interest among all rental property types. This data accurately reflects the current market situation, as workers have returned to the city earlier and in greater numbers compared to the same period in 2023.
Similar Trends in Ho Chi Minh City
Similar to Hanoi and the rest of the country, the real estate market in Ho Chi Minh City has experienced a decline in both listing volume and interest across most property types. Townhouses have seen the most substantial decrease, with listing volume and interest dropping by 38% and 31% respectively. Private houses and land plots have also experienced significant declines, with decreases of 37% and 33% respectively. On the other hand, although the number of apartment listings has decreased by 19%, the level of interest has only decreased by 6% – the lowest among all property types.
Stable apartment prices in Ho Chi Minh City with a slight increase in the high-end segment
Rental Market in Ho Chi Minh City
For the rental market, shared accommodation and private houses for rent are the rare bright spots in Ho Chi Minh City, with search volume increasing by 9% and 15% respectively. Overall, rental listings across the market have decreased by 11-26%. Apartments for rent have experienced the lowest decrease in search volume, with only a 4% decline, while office spaces for rent have seen a significant decrease of 39%.
The data indicates that in February, the real estate market continued to decline in terms of both listing volume and search demand. However, Batdongsan.com.vn believes that positive macroeconomic signals and the efforts of real estate businesses to overcome difficulties will help the market recover gradually, with improvements expected in the third quarter of 2024.
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