Hanoi apartment prices cool down, homeowners give in but buyers hesitate

(Dan Tri) - Experts say that this year, the selling price of new commercial apartments in Hanoi is expected to decrease by 5-10% compared to 2024 due to improved investment procedures and supply.

Apartment prices cool down, home buyers still waiting

Since the beginning of the year, the price of old apartments in Hanoi has shown signs of cooling down. Many homeowners have agreed to reduce the price by 300-500 million VND/apartment compared to the end of last year to find buyers.

According to a survey by Dan Tri reporters, an apartment in Cau Giay district (Hanoi) with an area of ​​116 square meters, designed with 3 bedrooms, was advertised for sale at the beginning of the year for 83 million VND/square meter, equivalent to more than 9.6 billion VND. Up to now, not finding a buyer, the owner has reduced the price to 78 million VND/square meter, equivalent to more than 9 billion VND. Thus, after just over a month, the advertised price has decreased by nearly 600 million VND.

Similarly, another apartment in Tay Mo ward, Nam Tu Liem district (Hanoi) with an area of ​​64m2, designed with 2 bedrooms, was advertised for sale at the beginning of the year at 4.3 billion VND, but has now dropped to 4 billion VND. In this project, at the beginning of the year, 2-bedroom apartments with an area of ​​60-64m2 were advertised for sale at 65-67 million VND/m2, but have now dropped to 61-62 million VND/m2.

At an apartment project in Ha Dong district (Hanoi), apartments with an area of ​​68-75m2, designed with 2 bedrooms, were advertised for sale at the beginning of the year for 65-68 million VND/m2, now reduced to 61-63 million VND/m2.

Although apartment prices have shown signs of cooling recently, many home buyers are still hesitant because they think prices may drop further.

Mr. Tran Khanh (Hoang Mai district, Hanoi) said that at the beginning of the year, he viewed an apartment with an area of ​​69m2, designed with 2 bedrooms in Thanh Tri district. At that time, the owner offered a price of 53 million VND/m2, the total value of the apartment was nearly 3.66 billion VND.

An apartment building in Hanoi (Photo: Duong Tam).

Seeing that the price was still high, Mr. Khanh decided to wait a little longer. Recently, the owner contacted him again and lowered the price to 3.35 billion VND, equivalent to 48.5 million VND/m2. Thus, after just over a month, the price of the apartment has dropped by more than 300 million VND. However, Mr. Khanh said that the price could drop further, so he has not put down a deposit yet.

Mr. Nguyen Tu - owner of a real estate brokerage in Hanoi - said that apartment prices peaked at the end of last year. Since the beginning of the year, many homeowners have agreed to reduce prices by 300-500 million VND/apartment to find buyers. Some homeowners, in addition to reducing prices, will accept to pay all transfer costs.

According to him, many people with real needs came to see the apartment but did not pay to buy. Some people think that the apartment price may decrease further so they are not in a hurry to "pay". In fact, although the price has decreased, many apartment owners are still making a profit. Until now, they want to close the profit to move to other investment channels or invest in other areas.

Will apartment prices continue to fall?

Mr. Nguyen Anh Que - real estate expert - said that in the period of 2020-2024, the supply of apartments is limited due to many difficulties in investment procedures, leading to sharp price increases. However, everything has a cycle and the law of supply and demand, so when prices increase too high, the market will adjust.

He said that Hanoi apartment prices peaked in October 2024, both in terms of transaction volume and selling price. Since November 2024, the market has shown signs of reversal, investors have begun to reduce prices, transaction volume has decreased, and confidence in continued increases in apartment prices has almost disappeared.

This year, investment procedures have been improved, the supply of apartments has increased, including social housing. With a new supply of more than 10,000 units in areas such as Dong Anh, Me Linh, Thanh Tri, Nam Tu Liem and some other districts, people will have more choices. Therefore, this year, the selling price of new commercial apartments is expected to decrease by 5-10% compared to 2024. By 2026, the decrease may reach 10-15%.

Experts say that apartment prices could decrease by 5-10% this year (Illustration: Duong Tam).

Mr. Dinh Minh Tuan - real estate expert - said that currently the supply of apartments has increased sharply, however, the price has also been set at a very high level of 70 million VND/m2 in the primary market and 55 million VND/m2 in the secondary market. "The adjustment in selling prices has led to a decrease in transaction volume and this trend may continue to move sideways throughout this year," he commented.

Explaining why the absorption rate has begun to decline, Mr. Tuan added that the sharp increase in prices over the past two years has exceeded the affordability of real buyers, and even investors have begun to be more cautious. In addition, the current apartment segment is mainly high-end and luxury, which is less suitable for the majority of people in need, leading to the absorption rate starting to decline.

Besides, after the "hot" increase period, the psychology of waiting for adjustment from buyers also largely affects transactions during this period. Real home buyers do not have suitable products, while investors are selling and waiting.

However, the demand for housing in Hanoi is still very high, although prices have been adjusted very strongly, the number of searches is still the highest compared to other segments. Currently, the group of investment buyers still targets projects with clear legal status, potential locations or completed apartments that can be exploited.

Source: https://dantri.com.vn/bat-dong-san/gia-chung-cu-ha-noi-ha-nhiet-chu-nha-xuong-nuoc-nhung-nguoi-mua-chan-chu-20250325022539232.htm