Hanoi Apartment Market Sees Shocking Price Hike in Early 2024
The Hanoi apartment market witnessed a shocking price surge in the first four months of 2024. This increase wasn’t limited to central areas but also spread to projects in the outskirts. Despite being located tens of kilometers away from the city center, these outlying areas saw prices reaching 60-70 million VND per square meter.
During a press conference held by the Ministry of Construction on April 26, the Ministry acknowledged the issue of rising apartment prices due to a shortage of supply and an imbalance in product structure. This explanation aligns with the assessments of many market experts.
Amid strong demand and the scarcest supply of Hanoi apartments in the past decade, several legally compliant projects accelerated their construction and sales. With over ten projects already in the market or about to join, they are likened to a “refreshing breeze” quenching the current thirst for apartments.
A practical survey reveals that the current supply is mainly concentrated in the western and eastern parts of the city. Nearly half of this supply comes from two mega-projects: Vinhomes Smart City and Vinhomes Ocean Park.
In the western region, projects located in the Vinhomes Smart City urban area (Nam Tu Liem) are making significant progress. These include Lumi Hanoi (developed by CapitaLand), The Canopy Residences (a joint venture between Vinhomes and Singapore’s GIC), Masteri West Heights apartments, and the high-end apartment complex Lumiere EverGreen (by Masterise Homes), and Imperia Sola Park (invested by MIK)… are all being expedited for construction and sales.
Also in the western region, several apartment projects have already entered or are preparing to enter the market, including Moonlight 1 apartments in the An Lac Green Symphony urban area and The Wisteria apartments in the Hinode Royal Park urban area (Hoai Duc), Capital Elite apartments at 18 Pham Hung, Hoang Thanh Pearl at 55 Nguyen Van Giáp (Nam Tu Liem), and Grand Sunlake at 135 Tran Phu, Ha Dong.
Apartment prices in western Hanoi currently range from 60 to 100 million VND per square meter. The highest price is observed in the fully-furnished Lumiere EverGreen apartments, reaching 100 million VND per square meter. The Lumi project, with its price range of 60-70 million VND per square meter, also caused a fever in the apartment market in the first quarter of 2024.
In the eastern region, the supply is mainly concentrated in the Vinhomes Ocean Park Gia Lam urban area, with two large projects: the high-rise building The Zurich (a joint venture between Vinhomes and Mitsubishi Corporation) and the H1 The Nomad apartment area in the Hawaii Masteri Waterfront subdivision (developed by Masterise Homes). Apartment prices in this area range from 60 to 70 million VND per square meter.
Although located outside Hanoi, a project that has attracted strong interest from Hanoi homebuyers is The Fibonan high-end apartment project, located next to the Ecopark million-tree city (Hung Yen). Surrounded by a cluster of four super-urban areas worth tens of billions of USD in the north and facing Vinpearl Land Safari, this project offers apartments at a lower price than those within the Ecopark, starting from 45 million VND per square meter.
Scarce supply will continue to push up apartment prices in the coming time.
While the supply of Hanoi apartments has resumed, the quantity remains modest, and the shortage will persist for at least the next two years. According to Savills, from now until 2025, Hanoi will face a shortage of about 70,000 housing units. With this situation unresolved, expecting a decrease in apartment prices is unrealistic.
Recent statistics from the Ministry of Construction also indicate that the country needs an additional 70 million square meters of urban housing annually. However, with the current development pace, Vietnam falls short by about 300,000 housing units every year. Thus, despite market challenges, the scarcity of supply, coupled with rising input costs for materials, labor, land, etc., continues to drive up housing prices without any signs of abating.
As apartment prices in central areas hit the 100 million VND per square meter mark, young people are now opting to move to outlying areas to purchase more affordable homes, enjoying more spacious living within large-scale urban areas. Consequently, these peripheral regions have also experienced significant price increases.
