Hanoi apartment market will skew towards high-priced segment: analysts

By Anh Tu   March 23, 2024 | 06:30 pm PT
Hanoi apartment market will skew towards high-priced segment: analysts
Office buildings and apartment blocks in Hanoi. Photo by VnExpress/Quang Huy
High-end units will soon dominate the Hanoi apartment market while mid-priced and affordable supply will dwindle in a rerun of the HCMC experience, analysts forecast.

This year 16,000-18,000 new apartments would be launched in Hanoi, 90% of them in its western and eastern areas, real estate trading platform OneHousing predicted in a recent report.

Some 77% of the supply would be high-end units costing above VND50 million (US$ 2,021.4) per square meter, while the rest would be priced at VND30-50 million, it said.

Apartments cheaper than that would be extremely rare, it added.

OneHousing said the trend of high-priced apartments dominating the market and other segments gradually disappearing occurred in HCMC three to five years ago.

"Hanoi will likely follow suit," it predicted in the report.

Concurring with this, Pham Duc Toan, CEO of real estate agency EZ Property, pointed out that apartment prices in Hanoi are soaring just like in HCMC a few years ago.

During those years apartment prices in HCMC skyrocketed before plateauing to establish a new floor price, he said.

The average primary market price in Hanoi rose by 15% in 2023 to VND53.2 million per square meter, around the same as in HCMC in 2020-21, according to data from property consultancy CBRE Vietnam.

Secondary market prices rose by 5% to VND33 million.

In HCMC, prices were steady in the primary market at around VND60 million and decreased in the secondary market.

Looking ahead, Toan said apartment prices in Hanoi would not come down anytime soon due to high demand, limited affordable supply and rising costs.

"Land and construction costs are much higher than a few years ago, and so it is hard for developers to build apartments that can be sold for less than VND30-40 million per square meter."

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