DNVN - The Hanoi apartment market has recently witnessed a rapid increase in prices, continuously establishing new price levels. However, according to experts, any market after a period of overheated development will at least go sideways and cannot increase forever...
The report on the housing and real estate market in the third quarter of 2024 by the Ministry of Construction shows that, according to surveys and reports from several major provinces and cities such as Hanoi and Ho Chi Minh City, apartment prices in Hanoi continue to increase in both new and old projects, the price level of new projects has increased by about (4% to 6%) quarterly and (22% to 25%) annually.
According to the real estate market report for the third quarter of 2024 by the OneHousing Center for Market Research and Customer Insights, the total transaction volume of high-rise apartments in the Hanoi market (including new transactions and transfers) reached about 17,600 units.
The average selling price of primary apartments in the entire Hanoi market has increased significantly, from VND 40 million/m2 in early 2022 to about VND 72 million/m2 in the third quarter of 2024. In particular, the average price of newly opened projects in this quarter reached about VND 72 million/m2 (excluding VAT and maintenance fees), because the supply of newly opened apartments in the quarter was mainly recorded as high-end and luxury segments, accounting for 100% of the market share.
According to Mr. Nguyen Quoc Anh - Deputy General Director of Batdongsan.com.vn, apartment prices in Hanoi started to increase since the end of last year and are increasing. One of the main factors affecting apartment prices is market psychology. In difficult times, many people are concerned about liquidity, so they focus on products with stable cash flow such as apartments.
Mr. Nguyen Quoc Anh - Deputy General Director of Batdongsan.com.vn.
"Batdongsan.com.vn has predicted the recovery of this type of real estate since 2022, and in 2024, apartment prices have really skyrocketed. Currently, apartment prices in Hanoi are even higher than in Ho Chi Minh City - a reversal from the previous period," Mr. Quoc Anh shared.
Explaining the reason, Mr. Quoc Anh emphasized the problem of supply not meeting demand. Since the beginning of 2020, the supply of the high-end segment has only accounted for about 6% of the total supply, but by the third quarter of 2024, this figure has increased by nearly 60%. This shows that investors are mainly launching projects in the mid- and high-end segments, while affordable apartments are almost non-existent in the Hanoi market. With the high demand for housing in a crowded urban area like Hanoi, the shortage of affordable apartment supply is putting great pressure on prices.
In addition, investors are focusing on the high-end segment. After a long time of overcoming legal barriers and increasing land costs, investing in mid-range and high-end apartments has become more reasonable in terms of profit. The number of people flocking to large cities such as Hanoi and Ho Chi Minh City is also increasing rapidly, making housing demand always high. In fact, with a population of about 10-12 million people, Hanoi needs from 100,000 to 170,000 apartments each year, but this year's supply is only about 30,000 units.
Proposing a solution to this problem, according to the Deputy General Director of Batdongsan.com.vn, one of the necessary measures is to increase the supply of social housing, in which the State needs to play a proactive role. Although the VND120,000 billion loan support package for social housing has been implemented, because banks operate for profit, the efficiency is not high.
According to Mr. Quoc Anh, Vietnam should learn from Singapore, where people can use social insurance funds to buy houses built by the Government at subsidized prices. This is a way to help people buy houses without having to depend too much on market prices.
Looking to the future, Mr. Quoc Anh predicts that apartment prices in Hanoi in 2025 will not increase as rapidly as they do now, but will not easily decrease due to the imbalance between supply and demand. Hanoi's real estate market still has many potential opportunities but also requires intervention from the State to regulate prices and meet people's needs.
"With the market already overheated, the next phase will at least be flat and cannot increase forever. Price adjustment can only happen if supply is increased appropriately," said Mr. Quoc Anh.
Minh Thu
Source: https://doanhnghiepvn.vn/kinh-te/bat-dong-san/chung-cu-ha-noi-2025-chuyen-gia-du-bao-khong-de-giam-nhung-kho-sot-nong/20241114041920893
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