High-end, luxury apartments dominate Hanoi’s supply

64% of the new supply will be in the high-end segment and the remaining will belong to the luxury category, according to a market report by property service firm OneHousing.

High-end apartments are priced VND50-80 million (US$1,966- 3,147) per square meter, and luxury apartments are priced VND80-230 million ($3,147-9,047).

Half of the new apartments will be located in eastern area of the city, particularly within major residential projects Vinhomes Ocean Park 1 and 2.

The average price of the new apartments will be around VND72 million (US$2,832) per square meter, up 75% from early 2022.

Developers are no longer focusing on mid-range housing; instead, they are prioritizing luxury and premium segments to meet profit expectations and the growing demand from the middle class, the report said.

Niche projects for a small number of buyers with deep pockets are being developed, it added.

In the last two years, affordable apartments have nearly disappeared from Hanoi, while the supply of mid-range units has steadily declined.

Market research firm CBRE reported that in the first half of this year, luxury apartments accounted for nearly 70% of new supply, while mid-range units made up just over 30%.

Hanoi's apartment market used to see participation from various developers, ranging from state-owned enterprises to small and medium-sized private firms. But now the capital is dominated by a few large, well-funded domestic and international developers.