The Capital’s Cooling Condo Market: A Post-Frenzy Standstill in Hanoi’s Property Prices

Apartment Deals: Discounts of 100 – 300 million VND per apartment

Ms. Nguyen Thoa, a real estate broker in Hanoi, is currently listing an apartment on behalf of the owner. The 54sqm apartment, located at 36 Pham Hung, Nam Tu Liem, Hanoi, is on the market for 3.8 billion VND. Prior to the Lunar New Year, the asking price was 4 billion VND. “After just two months, the owner agreed to reduce the price by 200 million VND for a quick sale, noticing that apartment prices have stopped rising. However, I’ve been advertising it for half a month now with no interested buyers,” shared Ms. Thoa.

Ms. Thoa added that the owner is merely reducing their profit and is not selling at a loss. Apartment prices have been continuously rising for the past two years and are currently at their peak.

Mr. Trung Kien from Ha Dong, Hanoi, shared a similar experience. In October 2024, he and his wife found a 70sqm apartment in Thanh Tri, Hanoi, listed at 3.5 billion VND. However, when they were ready to make a deposit, the owner changed their mind and demanded 3.7 billion VND. The asking price increased further to 3.8 billion VND in November 2024 through a real estate broker.

Sensing the owner’s lack of sincerity, Mr. Kien and his wife, despite their interest in the apartment, decided to walk away and continue their search for a property that better suited their needs and financial capabilities. “We then looked at projects outside of Hanoi’s center, but the prices kept rising as many others were also trying to buy a home to celebrate the Lunar New Year. It was very frustrating, so we decided to postpone our plans until the following year,” Mr. Kien said.

Unexpectedly, while still looking for a new apartment, another broker introduced Mr. Kien to the same apartment that had been offered to them in October 2024. This time, the owner’s asking price was 3.6 billion VND, significantly lower than the price in November 2024.

Knowing the owner’s tendency to change their mind, Mr. Kien inquired thoroughly about the apartment. According to the broker, the owner had previously asked for an excessively high price but couldn’t find a buyer, and now they realize that prices are stabilizing, so they are adjusting their expectations.

The broker also shared that apartment prices are currently stagnant and are unlikely to surge in 2025. As a result, many owners are willing to sell for 100-200 million VND less than their previous asking price to secure a quick sale and early capital retrieval. Owners are carefully considering the market shifts and making calculated decisions.

“Even though the owner has lowered the price, my wife and I are still hesitant to purchase this apartment since it has been introduced by two different brokers, and the owner’s lack of integrity is concerning,” Mr. Kien expressed.

In a similar vein, broker Hoang Duc is listing several apartments in a project under construction in Nam Tu Liem district. These apartments were once highly sought-after and experienced significant price increases of 400-600 million VND, with some even reaching nearly 1 billion VND, in the middle of 2024. However, the owners, mostly investors, are now listing them for sale at prices 100-200 million VND lower than the peak half a year ago.

Sellers are reducing prices, but buyers are waiting for further reductions

Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, explained that apartments with luxury labels are currently overpriced, making them unaffordable for average wage earners. Meanwhile, the predominant buyer group, investors, do not find the potential returns attractive, making it challenging for the luxury segment to find takers.

Mr. Pham Duc Toan, CEO of EZ Real Estate Investment and Development JSC, shared a similar sentiment, attributing the recent price surge in Hanoi to a supply-demand imbalance. “Apartment prices in Hanoi have now surpassed their peak. I have friends with good incomes, but they all feel that the current prices are too high, not commensurate with the value, and out of reach,” said Mr. Toan.

Consequently, many buyers are pausing their home-buying plans, leading to a potential decrease in apartment transactions. In 2025, apartment prices are not expected to rise further, and if they do, it will be an insignificant, localized phenomenon. Therefore, the trend of owners continuously pushing prices upward is unlikely to persist. Instead, to achieve liquidity, owners will need to offer reasonable prices that align with market demand.

Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan Channel, provided insight into the situation. He attributed the price reduction to a shift in market dynamics and a change in seller expectations compared to the 40-50% increases of the previous year. However, Mr. Quoc Anh noted that buyers are currently cautious and are waiting for further price drops.