(Dan Tri) - Experts say that this year, the Hanoi apartment market will no longer experience price "fever" but will instead move towards a more stable trend.
Apartment supply in Hanoi continues to increase
According to data from Savills Vietnam, in 2024, the total supply of new apartments in Hanoi will reach nearly 25,000 units, the highest in the past 5 years. In the fourth quarter of 2024 alone, the supply of apartments will reach 12,972 units, a sharp increase of 146% quarter-on-quarter and 351% year-on-year.
Ms. Do Thu Hang - Senior Director of Consulting and Research at Savills Hanoi - said that the shortage of supply in the Hanoi market is improving. However, selling prices remain high, reflecting strong market demand. Housing demand is mainly driven by domestic buyers, with long-term demand supported by positive net immigration and urbanization.
The outlook for 2025 is that the new apartment supply is expected to reach 25,200 units. Of which, Class B apartments will continue to lead, accounting for 88% of future supply. From 2026 onwards, about 70,000 apartments from 91 projects will be launched for sale. Dong Anh, Hoai Duc and Hoang Mai are expected to contribute 52% of the market share.
Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS) - forecasts that this year's apartment supply will grow by about 10% compared to 2024. In fact, many projects also have plans to launch to take advantage of the market's recovery opportunity.
However, the expected supply is still mainly contributed by large urban areas in the provinces and cities in the Northern region of large investors. Hanoi and satellite cities alone are estimated to reach about 37,000 products this year. Meanwhile, Ho Chi Minh City and its suburbs are estimated to reach about 18,000 products.
An apartment building in Hanoi (Photo: Tran Khang).
According to Mr. Dinh, housing supply will continue to be scarce, especially in the affordable housing segment. Supply from social housing projects is expected to grow significantly in 2025 but still accounts for a very small proportion of the total housing supply structure of the market. The apartment segment, mainly the segment priced from VND50 million/m2 or more, is forecast to continue to lead the market, with an increase in luxury supply.
He believes that housing projects launched this year will still attract attention and transactions, but the absorption rate is likely to slow down. The apartment segment will continue to dominate market liquidity.
Will apartment prices decrease?
According to Mr. Dinh, this year, apartment prices will hardly go down. The reason is that the new primary supply appearing on the market this year will focus mainly on the high-end and luxury segments in large cities. That is why apartment prices will continue to be high. "The apartment price level will hardly go down, only maintain a horizontal level," he said.
Ms. Duong Thuy Dung - CEO of CBRE Vietnam - said that this year, house prices will not decrease but the growth rate will slow down, only about 5-8%. Primary selling prices continue to increase because although supply has improved, it is still very difficult to meet demand because most of the new supply is completed at high standards with large investment costs.
Sharing the same opinion, Associate Professor, Dr. Dinh Trong Thinh - economic expert - said that in 2024, the Hanoi apartment segment will witness a very rapid price increase. Apartment prices will increase to more than 70 million VND/m2 by the end of 2024, the market will no longer have projects priced below 60 million VND/m2. Many mid-range projects have had their selling prices pushed up to 100 million VND/m2.
However, according to Mr. Thinh, in the coming time, the increase in apartment prices will slow down, the market will tend to be more stable, no longer in a feverish state like in the past. Buyers' cash flow will tend to shift from areas with high price ranges to look for areas and projects with more competitive price ranges and more room for growth.
Source: https://dantri.com.vn/bat-dong-san/nguon-cung-chung-cu-tiep-tuc-tang-trong-thoi-gian-toi-gia-ban-se-giam-20250217022158898.htm
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