Brian Jeffrey
Hanoi Real Estate Market Overview for Q3 2024
According to a recent report by Savills, the real estate market in Hanoi saw continued growth in apartment prices during the third quarter of 2024, affecting both new and existing projects.
New apartment prices experienced a quarterly increase of 6 percent and a yearly rise of 28 percent, reaching VND69 million per square meter. This growth in the primary market also raised prices of older apartments to VND51 million per square meter, up 10 percent from the previous quarter and 41 percent year-on-year.
In this quarter, there were 6,800 apartment sales, marking a significant 35 percent increase from the previous quarter and an impressive 226 percent increase compared to the same period last year. Notably, mid-range and high-end apartments represented 98 percent of all transactions.
Statistics from Savills indicate that in the first nine months of 2024, 70 percent of apartments sold were priced above VND4 billion, a sharp rise from just 2 percent in 2020. Apartments priced between VND2-4 billion accounted for 29 percent, while only 1 percent of sales were below VND2 billion.
This data highlights a troubling imbalance in housing options. Over the past years, apartments priced over VND4 billion have become increasingly common in Hanoi, leaving those with budgets of VND2-3 billion struggling to find available options.
The Ministry of Construction (MOC) reported significant price increases in Hanoi, particularly in districts such as Cau Giay, Thanh Xuan, Tay Ho, and Hai Ba Trung, with increases also observed in nearby areas.
For the first half of 2024, housing prices rose by 12.5 percent compared to the end of 2023.
Additionally, the MOC noted a slowdown in transaction activity by the end of Q2 2024, following adjustments to the new housing price levels. The ongoing price hikes are attributed largely to a shortage of mid-range and affordable apartments, particularly in Hanoi and Ho Chi Minh City.
Savills forecasts that by the end of the year, approximately 9,700 apartments will be available for sale, while projections for 2025 anticipate the introduction of about 10,000 apartments across 106 new projects, mainly in the mid-range and high-end categories.
According to a report by the General Statistics Office (GSO) in April 2024, the average monthly income for residents of Hanoi was VND6.869 million in 2023, compared to VND4.11 million in 2014, indicating a sluggish growth in earnings.
In contrast, housing prices rose by 12.5 percent during the first half of this year when compared to late 2023.
