The Rise of Resale and Relocation: Skyrocketing Condo Prices in Hanoi

The Ministry of Construction has released insights into the real estate market for the second quarter of 2024. According to their report, there has been a notable increase in apartment prices, with an average rise of 5% to 6.5% in the second quarter and a staggering 25% year-on-year, depending on the area and location. This surge in prices is not limited to new developments but also extends to older apartments that have been in use for several years.

A survey of apartment prices in Hanoi during the second quarter revealed significant increases in asking prices for certain condominium projects. Specifically, prices in the Royal City urban area rose by 33%, while The Pride and My Dinh Song Da-Sudico saw increases of 33% and 32%, respectively. Vinhomes West Point also experienced a notable jump of 28%.

Even older urban areas like Trung Hoa-Nhan Chinh witnessed a 25% hike in apartment prices, and the relocation apartments in Nam Trung Yen saw a 20% increase.

However, for those seeking slower-moving prices, one would have to look towards projects farther from the city center, such as Binh Minh Garden Duc Giang and Le Grand Jardin Sai Dong. Even then, prices remain high, starting from 3 billion VND (approximately 3.2-4.5 billion VND for a 2-3 bedroom apartment).

Asking prices for specific projects include: Lumi Hanoi, ranging from 66-82 million VND/sqm in Tay Mo, Nam Tu Liem district; Imperia Sola Park, approximately 55-72 million VND/sqm in Tay Mo, Nam Tu Liem; Grand SunLake, starting from 40-55 million VND/sqm in Van Quan, Ha Dong district; The Canopy Residences, around 57-72 million VND/sqm in Nam Tu Liem district; and The Wisteria, with prices from 40-60 million VND/sqm in Hoai Duc district.

In the secondary market, several projects witnessed significant price increases in the second quarter, including 249A Thuy Khue (Tay Ho) with a 12.1% rise, D’. El Dorado II (Tay Ho) with a 9.6% increase, Vinata Tower (Cau Giay) with a 9.9% jump, Vinhomes D’Capitale (Cau Giay) with a 13.9% surge, and Eco Lake View (Hoang Mai) with a 13.5% climb.

In terms of the number of housing and real estate projects licensed, under construction, completed, and eligible for future sales in the second quarter of 2024, a total of 9 projects were completed, providing approximately 5,005 units. Specifically, there were 6 projects in the North, 1 in the Central region, and 2 in the South. This quarter’s performance is equivalent to 90% of the first quarter of 2024 and a 128% increase compared to the same period last year.

Additionally, 19 new projects were licensed in the second quarter, offering approximately 10,230 units. The number of newly licensed projects remains unchanged from the first quarter of 2024 and represents a 126.67% increase compared to the same period in 2023. The breakdown includes 9 projects in the North, 9 in the Central region, and 1 in the South.

There were 50 future housing projects eligible for sale, providing approximately 13,167 units. This represents a 131.58% increase compared to the first quarter of 2024 and a 106.38% rise compared to the same period last year. The breakdown includes 17 projects in the North, 20 in the Central region, and 13 in the South.

A total of 998 projects are currently under construction, offering approximately 437,153 units. This reflects a slight increase of 1.42% compared to the first quarter of 2024 and a 1.2% rise year-on-year.