After two years of strong growth, the Hanoi apartment market started to cool down in the fourth quarter of 2024. While there was a slight dip in the market, prices remained high and stagnant. It wasn’t until the first quarter of 2025 that a 1% quarterly decrease was recorded in the secondary market, with average prices reaching VND 60 million per square meter, according to Savills data. However, this still marks a significant 41% year-on-year increase.
With such high apartment prices, a young family looking for a two-bedroom, two-bathroom home would need around VND 4-5 billion to purchase an old apartment that has been operational for 6-7 years. For larger families who require an additional bedroom, the price tag jumps to a staggering VND 7-9 billion for a three-bedroom, two-bathroom apartment.
Ms. Hong, 35, faced a similar dilemma with a budget of VND 7-8 billion. After viewing nearly 10 apartments, she realized that her budget would only allow for a spacious home if she moved away from the city center. Alternatively, she could opt for a smaller, older apartment (over 5 years old) with limited amenities if she wanted to stay close to her workplace. Moreover, these older apartments often require renovations before moving in.
“I feel like the apartments I’ve viewed don’t match the amount of money I’m spending. But with apartment prices so high, there aren’t many alternatives, and now it’s just a matter of whether or not I’m willing to spend that much,” Ms. Hong shared.
Frustrated with her apartment hunt, Ms. Hong shifted her focus to houses. What surprised her was the modern and optimized design of newly built houses, complete with contemporary furnishings rivaling those found in new apartments.
Houses in alleys are designed to optimize the use of space and are beautifully furnished. (Illustrative image)
“With a budget of VND 7-8 billion, I can only afford to buy a house in an alley where cars cannot pass through. This is inconvenient as my family would have to find parking elsewhere,” Ms. Hong shared.
However, her friends and family advised her to purchase the house, acknowledging the inconvenience but emphasizing the beauty and potential of the property. They suggested that she could live there for 3-5 years, save up, and gradually move to a more accessible location.
Convinced by their advice, Ms. Hong decided to put a deposit on a four-story, 38-square-meter house in Thanh Xuan. The house, designed and built by a construction expert, impressed her with its optimal design and functionality.
Similarly, Mr. Phung also shifted his focus to purchasing a house in Khuong Dinh, Thanh Xuan, after an unsuccessful search for an apartment.
“Apartment prices are high, and there’s a limited supply, so there aren’t many options. If you want to find a newly delivered apartment within 3-4 years or a primary apartment, you have to look farther out,” Mr. Phung shared.
Real estate broker Manh, specializing in the Thanh Xuan district’s house segment, observed that as apartment prices soared beyond affordability, many families turned to houses in alleys within the inner-city districts.
“In reality, with the real estate price surge over the past few years, all housing segments have experienced increases, including houses in alleys. However, the rate of increase for these houses has been lower, with a steady annual rise of 5-7%. On the other hand, the shocking price increases in the apartment market from 2021 to 2024 left many people astonished and unwilling to accept such hikes. As a result, many have opted to purchase houses instead of apartments during this period,” broker Manh shared.
Offering advice to homebuyers in the current market, Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association (VARS), suggested that buyers take the time to thoroughly research the selling prices of similar properties in the same area before making a purchase decision.
The Flatlining Condo Prices: Investors Anxious Over ‘Holding Duds’
After the Lunar New Year, apartment prices tend to stabilize, a trend that often sparks fears of losses among investors who bought at the peak.
The Magnet of Hanoi: A Neighborhood That Attracts Investors and Experts Alike, With Property Prices Predicted to Soar.
“The gateway to southern Hanoi has become a magnet for investors, and rightly so. This area, with its undeniable allure, is set to be a hotspot for real estate ventures in the future. As the city expands and develops, the south will undoubtedly reap the benefits, and the projects there will thrive.”
The Rise of Hanoi’s Condo Prices Has Stabilized, but a Drop is Unlikely
“With a notable slowdown in condo price hikes, the market is poised for greater stability, says economic expert, Associate Professor Dr. Dinh Trong Thinh. He predicts an end to the feverish market conditions witnessed in the past, as the upward trajectory in condo prices levels off.”
“Completed Projects Left Unsold Due to Lack of Land Appraisal, While Some Areas Witness a Doubling of Land Prices Within Just Six Months”
This is a statement from Mr. Nguyen Quoc Hiep, Chairman of GP. Invest and the Vietnam Association of Building Contractors, at the forum “Sustainable Development of the Real Estate Market – Awarding the Livable Project Certification 2024” organized by the Enterprise Forum on the morning of November 27th.
10 Resale Condos Account for 50% of Hanoi’s Market Share in August
In August, the top 10 apartment projects with the highest number of transfers included prestigious names such as Vinhomes Ocean Park, Vinhomes Smart City, and Vinhomes Times City. These were followed by well-established urban areas: Linh Dam, Ciputra, and Viet Hung – Long Bien. Rounding out the list were Vinhomes Green Bay, Duong Noi Urban Area, the City of Transportation Exchange, and Goldmark City.
