Hanoi apartment listings on real estate trading platform see 20% price jump

By Ngoc Diem   April 8, 2024 | 05:29 am PT
Hanoi apartment listings on real estate trading platform see 20% price jump
An apartment project in Hanoi's Bac Tu Liem district. Photo by VnExpress/Ngoc Diem
Hanoi apartments listed on Batdongsan have seen their prices rise 11-20% year-on-year this quarter, the real estate trading platform has said in its quarterly report.

Mid-priced apartments experienced the biggest price increases of nearly 20%, it said. Prices were up 17% and 11% in the premium and affordable segments.

The average apartment price on the site is now VND46 million (US$1,840) per square meter, 44% up from 2021, Batdongsan said.

Nguyen Quoc Anh, Batdongsan’s deputy CEO, chalked the price hikes up to limited supply.

Despite various measures taken to resolve legal hurdles and expedite project implementation, new apartment supply this year has only managed to meet 30-35% of demand, he said.

A Batdongsan survey of 200 real estate agencies found over a third of participants saying they had witnessed 10-50% more transactions in the first quarter compared to the previous one.

Many HCMC investors have shifted their focus to the Hanoi market to capitalize on the rising prices and demand, Anh said.

The number of searches done in HCMC for Hanoi apartments has jumped 7.5-fold since early 2021.

This is because apartment rental yields are higher in Hanoi (4.1-4.9%) than HCMC (3.9-4.5%) and prices are slightly lower on average, Anh explained.

Nguyen Hoai An, a senior director at property consultancy CBRE Hanoi, said the Hanoi apartment market had previously been dominated by a few major developers.

As southern and foreign property developers seek to enter the market, they prefer to develop high-end projects since they give them more room to differentiate their products from those of existing firms, she said.

Several recently launched projects are priced as high as VND60-70 million per square meter despite being located far from the city center, he said.

This increase in premium supply has pushed up average prices in the city.

Nonetheless, An said, the increased competition from foreign and southern developers would help improve quality and management standards in the market.

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