Hanoi apartment prices have reached an 8-year peak, what will happen this year?

(Dan Tri) - CBRE Vietnam forecasts that with the continued abundance of new supply, primary selling prices of the apartment segment in Hanoi are expected to increase by an average of 6-8% per year.

New apartment prices reach 72-76 million VND/m2, peaking in 8 years

CBRE Vietnam's Vietnam Real Estate Market Outlook Report for the Fourth Quarter of 2024 shows contrasting developments between the Hanoi and Ho Chi Minh City residential real estate markets, especially in the apartment segment.

The supply of newly launched apartments in Hanoi is the highest since 2020, tripling compared to 2023, exceeding 30,900 units. Meanwhile, the supply of this product in Ho Chi Minh City is the lowest since 2013, only 5,050 units.

Regarding selling prices, as of the fourth quarter of 2024, the selling price of apartments in Hanoi reached 72 million VND/m2 (excluding VAT and maintenance costs). In 2024, the primary selling price of apartments recorded a sharp increase, up 36% over the same period last year and 12% over the previous quarter. This is the highest increase recorded in the past 8 years in the Hanoi market.

The majority of new supply this quarter was concentrated in high-end projects. This has led to an increase in primary prices as well as sales rates exceeding 70% in projects.

In Ho Chi Minh City, the current primary selling price of apartments is VND76 million/m2, up nearly 24% year-on-year. The increase is due to more than 70% of new supply in Ho Chi Minh City this year being high-end to luxury projects and projects opening for sale in the next phase adjusting their selling prices to increase from 10% to 40% compared to the previous phase.

A large urban area in Hanoi (Photo: Tran Khang).

What will apartment prices be like in 2025?

Assessing the apartment segment in 2025, Ms. Nguyen Hoai An, Senior Director of CBRE Hanoi branch, said there are a number of factors that can be expected to stabilize the price level.

In 2025, the new supply of apartments in Hanoi is expected to continue to be abundant, estimated at more than 31,000 units for sale, higher than in 2024, mainly concentrated in the high-end segment, with an increase in luxury supply.

This supply is considered a good signal for the market. Citing research data, Ms. An said that after a year of rapid price movements, the price level in the fourth quarter of 2024 tends to increase more slowly. From that supply, primary prices are forecast to grow steadily, expected to increase by an average of 6-8% per year.

However, experts also note that changes in land prices in 2025 are factors that increase land costs and investment capital costs for investors. As a result, businesses may adjust selling prices to ensure profits.

Source: https://dantri.com.vn/bat-dong-san/gia-chung-cu-ha-noi-da-dat-dinh-8-nam-nam-nay-ra-sao-20250108094200260.htm