In less than a year, the price of new apartments in Hanoi increased by 13%, soaring to 54 million VND/m2.

According to the Hanoi real estate market report for the third quarter of 2023, Savills Vietnam said that the housing supply, especially the apartment segment in the capital, continues to be low.

Specifically, the new apartment supply in the third quarter of 2023 reached 1,891 units in the B segment, down 65% compared to the same period last year. There was no new supply in the A and C segments.

Less than a year ago, the price of new apartments in Hanoi increased by 13%, soaring to 54 million VND per square meter, picture 1 — In less than a year, the price of new apartments in Hanoi has increased by 13%, soaring to 54 million VND/m2. (Photo: DM)

Primary supply was 19,808 units, down 6% year-on-year. Grade B apartments accounted for 92% of the supply.

The number of units sold reached 2,100, down 42% year-on-year. The reason for the "unsold" apartment segment is due to macroeconomic factors, financial difficulties and concerns about affordability that have affected the housing market.

However, apartment prices still increased. Accordingly, the selling price of primary apartments increased by 13% compared to last year, the primary price reached 54 million VND/m2. This price even increased by 2% compared to 3 months ago.

Meanwhile, secondary apartment selling price reached 36 million VND/m2, up 2% quarterly and 8% annually.

Ms. Do Thu Hang, Senior Director of Research and Consulting, Savills Hanoi, forecasts that in the fourth quarter of 2023, future supply will include about 2,200 additional apartments, most of which will come from the next phases of existing projects.

By 2025, 52,500 units from 51 projects will be launched. Grade B apartments will still be the largest source of supply, accounting for 76% of future supply.

According to Ms. Hang, the residential real estate market still faces many challenges, however, amending laws such as the Land Law, Housing Law, Real Estate Business Law, etc. will create conditions for the housing market to develop.

Besides, Ms. Hang said, one of the factors affecting the Hanoi real estate market is the official upgrade of Gia Lam district to a district.

Ms. Hang said that in the first 9 months of 2023, Gia Lam accounted for 31% of primary supply in Hanoi and 29% of the number of transactions.

Since 2019, primary prices have increased by 13% per year. From Q4/2023 onwards, Gia Lam has a future supply of 8,700 units.

“The completion of phase 2 of Vinh Tuy bridge in the third quarter of 2023 and Duong bridge in 2025 will support the supply and number of units sold in the future,” Ms. Hang commented.

Source