(CLO) Although the average price of primary apartments in Hanoi in the third quarter of 2024 reached 72 million VND/m2, this is just the beginning of a new growth cycle.
According to the OneHousing Center for Market Research and Customer Insights, the Hanoi apartment market in 2025 will have about more than 30,000 new apartments, equivalent to the peak period of 2016 - 2019. However, the average price of newly opened apartments will reach 72 million VND/m2 (excluding VAT and maintenance fees), an increase of 75% compared to the first quarter of 2022.
Of the more than 30,000 new apartments, 48% of the supply will come from the East. Meanwhile, the West has almost no new projects. However, this area will still supply 29% of the new apartment supply to the market, mainly from the last-launched projects. Meanwhile, the North will emerge and contribute 19% of the market share, mainly in the luxury segment.
Although apartment supply has shown clear signs of recovery, investors continuously launched new products in the third and fourth quarters of 2024, prices have not decreased because new supply is mainly in the high-end and luxury segments.
Apartment prices in Hanoi are increasing rapidly and continuously, but they are not yet at their 'peak'. (Photo: MH)
Mr. Tran Quang Trung, Business Development Director of OneHousing, commented: The rapid increase in apartment prices in Hanoi in a short period of time may cause a "temporary shock" reaction, but in the journey to 2030, this is just the beginning of a new growth cycle.
According to experts, the Hanoi apartment market is following the growth scenario of Ho Chi Minh City. In the next 2-3 years, the real estate market will become clearer with significant changes, including price fluctuations and adjustments in demand from both investors and home buyers. It is forecasted that all primary supply in Hanoi in 2025 will be in the high-end and luxury segments, of which luxury accounts for 36%.
“If two years ago, apartment prices in the Hanoi market were about 30 to 50% lower than in Ho Chi Minh City, now, in some segments, they have approached 80% to 90%,” said Mr. Trung.
In addition, with the change of the new Law, the input costs of projects have increased, investors no longer prioritize the mid-range segment, instead developing projects in the high-end and luxury segments to both achieve the profit expectations of investors and meet the needs of the growing middle class in Vietnam. In addition, in the coming time, the primary market in Hanoi will continue to welcome special product lines - a new price increase factor, not for the majority.
Source: https://www.congluan.vn/gia-can-ho-tai-ha-noi-tang-nhanh-tang-lien-tuc-nhung-chua-phai-la-dinh-post322155.html
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