Reaching 48 million VND/m2, old apartments in Hanoi have the highest price increase in history

(Dan Tri) - In 2024, secondary apartment prices in Hanoi increased by an average of more than 26%. This price increase is considered the highest in recorded history.

Assessing the Vietnamese real estate market in 2024, Ms. Nguyen Hoai An, Senior Director of CBRE Hanoi Branch, said that the apartment segment is an impressive bright spot. Research by this unit shows that as of the fourth quarter of 2024, the selling price of primary apartments in Hanoi reached 72 million VND/m2 (excluding VAT and maintenance fees).

That price increased by 36% compared to the same period last year and 12% compared to the previous quarter, also the highest increase recorded in the past 8 years in the Hanoi apartment market. Meanwhile, the primary selling price of apartments in Ho Chi Minh City reached an average of 76 million VND/m2, an increase of nearly 24% year-on-year.

The sharp increase in primary apartment prices has also led to a wave of secondary apartment price increases. Data shows that the average selling price of secondary apartments in Hanoi reached 48 million VND/m2, while the price in Ho Chi Minh City was 49 million VND/m2.

Secondary apartment prices in Hanoi and Ho Chi Minh City in 2024 will be at 48-49 million VND/m2 (Photo: Tran Khang).

In Hanoi, the increase in secondary selling prices maintained a steady increase compared to the beginning of the year, increasing by 5% quarter-on-quarter. Compared to the same period last year, the secondary selling price of apartments in Hanoi increased by more than 26% year-on-year. This price increase is considered the highest in recorded history so far according to the information announced by the above unit.

Dan Tri 's survey shows that the common selling price of secondary apartments at the Times City project (Hai Ba Trung district, Hanoi) is around 87.5 million VND/m2, an increase of 56.8% over the same period in 2023. Old apartments at The Artemis project (Thanh Xuan district) are commonly priced at 87.5 million VND/m2, an increase of 65.1%.

Stellar Garden project (Thanh Xuan district, Hanoi) is priced from 62.4 million VND/m2 to 73.9 million VND/m2. The common price is 66.7 million VND/m2, an increase of 36.4%.

Some projects in suburban areas such as Vinhomes Smart City (Nam Tu Liem district) have a common price of 64.8 million VND/m2, an increase of 38.8% after one year. Secondary apartments at Vinhomes Ocean Park (Gia Lam district) have a price of 48.6 million VND/m2, an increase of 50%.

On the other hand, the research unit's data shows that secondary apartment prices in Ho Chi Minh City continue to increase slightly, increasing by an average of 1% quarterly and 7% annually. Metro Line 1, which will begin commercial operations from the end of December 2024, also contributes to pushing up apartment prices in projects along the route.

The average selling price of secondary apartments in District 2 (old) and District 9 (old) of Thu Duc City recorded an increase of 2-3% quarterly and nearly 15% annually.

According to data from Batdongsan.com.vn, some apartments in the project in District 1, Thao Dien Ward (old District 2), near metro stations have increased in price by about 7-10% compared to early 2024.

According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), the reason for the high price of old apartments is the increasing demand of the people. Meanwhile, the new supply to the market is mostly in the high-end segment and there is a lack of affordable housing. Meanwhile, input costs such as construction materials, capital, labor, etc. are increasing, making it difficult for housing prices to decrease in the short term.

Recently, in the 2024 market report, the brokerage unit also stated that the apartment segment will continue to dominate market liquidity in 2025. Primary apartment prices continue to be high as supply recovers strongly but is still scarce compared to demand.

VARS said the large gap between supply and demand, especially in the mid-range and low-end segments, will continue to push real estate prices in central areas of Hanoi and Ho Chi Minh City up by about 7-10% this year.

However, secondary apartment liquidity continues to decline, especially for old apartment products lacking infrastructure and utilities when the transfer price is too high compared to the actual value.

Source: https://dantri.com.vn/bat-dong-san/can-moc-48-trieu-dongm2-chung-cu-cu-ha-noi-tang-gia-cao-nhat-lich-su-20250109092536585.htm