Hanoi apartment prices continue to increase in the third quarter of 2023

The report also pointed out that in the third quarter of 2023, the supply of Hanoi's residential real estate market welcomed nearly 1,800 new products. However, affordable products continued to be absent from the market. Apartments priced around VND30 million/m2 were only available from a few projects in areas far from the city center.

Regarding selling prices, the average apartment price in Hanoi is currently at VND53 million/m2, up 2% quarter-on-quarter. According to Mr. Nguyen Van Dinh, Chairman of VARS, supply is increasingly scarce due to the cost of land fund creation, the cost of raw materials, the cost of accessing finance is increasing,... so real estate projects find it difficult to reduce prices and maintain selling prices at a high level.

Mr. Dinh predicts that apartment prices will continue to increase in both the primary and secondary markets, especially in the affordable and mid-range segments and in projects that are nearing the end of the product line.

Apartment prices in Hanoi continue to increase.

" Apartment prices will continue to increase in both the primary and secondary markets, especially in the affordable and mid-range segments in large cities. Positive signs of recovery in the market will help strengthen investors' confidence. Lower interest rates and a more positive economic situation will also help significantly improve demand. However, the imbalance between supply and demand will persist, along with high prices, which are expected to reduce people's purchasing power ," Mr. Dinh predicted.

VARS's report also shows that the apartment segment continues to lead the supply of new housing for sale in Hanoi in the third quarter of 2023. High-end apartments account for 47%, mainly from projects in large-scale urban areas in non-central areas.

There will be just over 100 low-rise products launched in Q3/2023, from the next phase of the project in Me Linh and new launches from 1 project in the West.

VARS statistics also show that in the third quarter of 2023, the absorption rate of the housing segment in Hanoi reached 30% of new offerings with more than 530 transactions, down more than 50% compared to the same period last year. However, the transaction situation of the subdivisions and next phases of existing metropolitan projects is very positive. The later this segment is, the more it improves in terms of construction quality, legality, etc.

This is also a product line that generates transactions in any context because it both meets the need for housing and can be invested with double profits from rental exploitation and stable price increase over time.

According to VARS' forecast, a number of social housing projects expected to open for sale at the end of the year are expected to improve people's confidence, contributing to heating up the market.

However, Mr. Dinh said that although there has been more "participation" of some "leading birds" in implementing social housing and commercial housing projects. However, the real estate market in the fourth quarter of 2023 will hardly record sudden changes in the short term because the supply has not yet been able to "breakthrough", the projects need a relatively long time to be able to implement and meet the conditions for opening for sale. The number of social housing projects that will be opened for sale in the near future is still very small compared to the demand.

Ngoc Vy

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