Hanoi apartment prices approach townhouse, villa levels at over $8,000 per sq.m

By Ngoc Diem, Anh Tu September 12, 2024 | 03:06 pm PT

Some newly launched apartments in Hanoi are priced at nearly VND200 million (US$8,100) per square meter, or almost on a par with townhouses and villas.

A five-tower apartment project on Vo Chi Cong Street in Tay Ho District has opened for bookings in recent weeks at estimated prices of at least VND170 million per square meter.

Its main supply consists of sky villas measuring 105-284 square meters that cost VND25-85 billion, or VND238-299 million per square meter.

One- and two-bedroom units cost VND200 million and VND229 million per square meter.

Less than 200 meters away from it are two apartment developments by a Singaporean investor that were handed over in August.

Sold at around VND120 million, units in them are now being resold at VND150-180 million.

The director of a property trading floor near West Lake said apartment prices are topping VND200 million per square meter and "closing in" on that of villas and townhouses in their vicinity.

Some villas in the Ciputra Hanoi Urban Area are selling at VND290-350 million per square meter on the secondary market. Townhouses handed over in bare-shell condition are listed at VND315 million.

According to real estate firm Avison Young’s report for the second quarter, secondary market prices for villas and shophouses in the Diplomatic Corps urban area in Hanoi ranged from VND255 to VND368 million per square meter.

Nonetheless, prices of units during the booking phase are not final and are usually meant to help developers gauge potential buyers' interest, he said.

An apartment project with secondary market prices of over VND100 million per square meter near the West Lake in Hanoi. Photo by VnExpress/Anh Tu

David Jackson, CEO of Avison Young Vietnam, said primary market apartment prices in Hanoi are rising rapidly.

The VND100 million mark was first breached in late 2021 and early 2022 but has since become more common.

Jackson said only apartments in prime locations near the city center used to command such prices in the past, but as these places run out of land, high-priced projects are springing up even on the city’s outskirts.

Brand names, utility and management are also factors that drive up prices, he said. He expected high-priced units to make up 75% of this year’s new apartment supply.

Nguyen Chi Thanh, CEO of property developer Ho Tay, said most businesses possessing land prefer to develop high-priced units to optimize profits, given the rising land and development costs.

"The increase in apartment prices also drives up rentals, affecting affordability for both homebuyers and renters."