The latest data from Batdongsan.com.vn shows that the average selling price of apartments in Hanoi in the first two months of this year increased by 17% compared to the same period in 2023. In fact, many buyers, sellers, and real estate agents have also noted that the prices of apartments in Hanoi are “soaring”, with some projects experiencing price hikes of up to 30% in just 1 year. For example, the selling price of apartments in the Royal City project increased by 33%, The Pride by 33%, My Dinh Song Da – Sudico urban area by 32%, Vinhomes West Point by 28%, and Dai Thanh apartment by 27%, according to the price history data from Batdongsan.com.vn.
According to the data, the top 10 apartments with the highest price increases in Hanoi are mainly in the mid-range segment. With this price increase, affordable apartments without land ownership and no red book are no longer priced at 25 million VND/m2.
Apartment price increase data from Batdongsan.com.vn.
Although the prices of apartments in Hanoi have been continuously rising in a short period of time, Mr. Nguyen Quoc Anh – Deputy General Director of Batdongsan.com.vn believes that the prices only reflect the supply-demand relationship and cannot be concluded as “overpriced” because a portion of customers are willing to buy at that price and batdongsan.com’s data still shows an increasing demand.
In Hanoi, the supply is not sufficient to meet the demand, leading to a sharp increase in prices. On the other hand, in Ho Chi Minh City, the prices of apartments are also trending upwards, but the increase is only about 4% compared to the same period in 2023. The apartment market in Ho Chi Minh City has seen many adjustments in the past, causing the price level to remain high, so the prices in the near future will remain stable or fluctuate insignificantly.
Mr. Nguyen Quoc Anh advises investors and property buyers/sellers to spend more time observing the market developments in the coming period when demand is approaching the “resistance level”. He believes that if the level of interest in apartments in the coming months exceeds the peak in August 2023, it may lead to further price increases. However, if the demand cools down, apartment prices will undergo adjustments.
Explaining the continuous “hot” price increase of apartments in recent times, Mr. Nguyen Van Dinh – Chairman of the Vietnam Association of Real Estate Brokers (VARS) said that the supply of apartments in Hanoi is truly scarce. The number of projects has been increasingly limited in recent years, while the demand from customers, especially young families, is still large.
In addition, according to Mr. Dinh, the cause also lies in the unbalanced structure of products in the market, pushing up prices of apartments in the affordable and lower-middle segments. As a result, people with real housing needs lose access opportunities.
In the short term, Mr. Dinh predicts that the prices of apartments in the centers of major cities will continue to rise, especially in the affordable and mid-range segments. Meanwhile, the prices of luxury and high-end projects may see a slight decrease.
Research data from the Vietnam Association of Real Estate Brokers (VARS) shows that the housing price index in Hanoi in 2023 increased by about 38% compared to 2019, while in Ho Chi Minh City, it was 16%.
