Hanoi’s apartment supply surpasses Ho Chi Minh City
According to a report by CBRE Vietnam at the Hanoi and Ho Chi Minh City Real Estate Market Focus Conference on July 9, the real estate market in the two cities showed contrasting trends in the first half of 2024, especially in the apartment market.
CBRE Vietnam’s report revealed that in the first two quarters of 2024, Ho Chi Minh City only saw around 2,000 new apartments for sale. Approximately 500 units were offered in the first quarter, and nearly 1,200 apartments were added in the second quarter, located in the city’s East and South areas. The majority of the apartments sold in the first half were from existing projects offering new phases, with only two entirely new developments: The Aurora in Phu My Hung (82 units) and Eaton Park (841 units) in District 2.
In contrast, Hanoi witnessed a nearly fourfold increase in new supply in the second quarter of 2024 compared to the previous quarter, reaching approximately 8,500 units. Overall, the total supply in the first six months of the year was the highest recorded since 2020. The majority of new supply in this quarter continued to concentrate in the city’s west, mainly from two projects: Lumi Hanoi (phase 1) and Imperia Sola Park, as per CBRE’s report.
Robust demand in both markets
Bolstered by the abundant new supply, Hanoi’s apartment market experienced a significant surge in demand this quarter. The number of apartments sold in the first half of 2024 surpassed the total for the entire year of 2023. Specifically, in the second quarter of 2024, the number of units sold reached 10,170, five times higher than in the previous quarter and the same period last year.
Large-scale apartment projects in the western and eastern areas of Hanoi continued to record strong sales performances. Notably, several projects with large inventories (1,000–2,000 units) achieved sales rates of 80–90% during this quarter.
Meanwhile, a project in the west of Hanoi quickly proceeded with the second phase of sales after officially launching the first phase in the second quarter. In terms of product types, small-sized apartments, including studios and one-bedroom units with affordable prices and good rental potential, exhibited strong liquidity in the market.
Eaton Park – A newly launched luxury apartment project in Thu Duc City.
In Ho Chi Minh City, with limited new apartment supply in the first half of 2024 (only 40% of the new supply in 2023), the number of apartments sold in the first six months reached 80% of the same period last year, totaling over 1,700 units.
Due to the constrained new supply, projects with new launches in Ho Chi Minh City during the first half of the year achieved good sales performances. A mid-range project in the city’s south, offered at an average price of VND 53 million per square meter (excluding VAT, maintenance fees, and discounts), recorded sales of over 90% on the launch day. This price was 16% lower than the market average in Ho Chi Minh City.
In the city’s east, a luxury apartment project sold out its remaining units in the final phase at an average price of VND 170 million per square meter on the launch day. Additionally, a high-end apartment project bordering the luxury segment recorded sales of over 70% of the released units, with an average price of approximately VND 130 million per square meter (excluding VAT, maintenance fees, and discounts).
Hanoi’s apartment prices are approaching those of Ho Chi Minh City in both the primary and secondary markets. In the primary market, Hanoi’s average apartment price reached nearly VND 60 million per square meter (excluding VAT and maintenance fees), only VND 3 million lower than Ho Chi Minh City’s current average. Compared to the previous quarter, prices increased by 6.5% and nearly 25% year-on-year. The continued dominance of new luxury supply and the stronger presence of southern investors contributed to maintaining high primary apartment prices in Hanoi.
Furthermore, the completed and delivered inventory over the past 1–2 years has only reached approximately 15,000–20,000 units, not yet abundant compared to the 2019–2020 period when the delivery volume reached 30,000–40,000 units annually. The ever-increasing housing demand has also pushed primary market prices higher.
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