The Ministry of Construction’s report on housing and real estate market information for Q1 2025 noted that apartment prices remained stable during this quarter, no longer experiencing the same “hot” increase as in 2024. The affordable segment is priced below VND 45 million/m2, the mid-range segment fluctuates between VND 45-70 million/m2, luxury apartments range from VND 70-100 million/m2, and the ultra-luxury segment can reach nearly VND 200 million/m2.
In Hanoi, after a period of continuous increase, apartment prices have now stabilized. In some projects, prices have increased by about 5% compared to the end of 2024.
Although the heat has cooled down, Hanoi apartment prices remain high. A market survey shows that newly listed apartment prices are still commonly VND 60-70 million/m2 and above, with almost no affordable apartments priced below VND 45 million/m2…
Mr. Nguyen Van Dinh – Vice Chairman of the Vietnam Real Estate Association |
At a recent discussion on “Realizing the Dream of Social Housing” hosted by Tien Phong Newspaper, Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, explained why Hanoi’s housing prices are so high.
According to Mr. Dinh, the input costs for a commercial housing project include: 25% land cost, with projects closer to the center having higher land costs; prime locations account for 40-50% of the total value of real estate. Additionally, investment procedure costs account for about 5-10% of the total cost and can increase to 15% if the procedure is prolonged. Capital cost accounts for about 5-10%, and there are also construction cost groups (materials, labor, machinery) that are pushed up due to rising prices and increased labor costs.
Based on this input structure, Mr. Dinh calculated the commercial housing prices in Hanoi as follows: Center areas range from VND 50-70 million/m2, peripheral districts are about VND 35-40 million/m2, and outlying districts range from VND 30-40 million/m2.
Regarding the input costs of social housing projects in Hanoi, Mr. Dinh shared that if land use fees are excluded, along with other support such as shortened project implementation procedures and faster home sales, the selling price of social housing in the central area would be VND 35 million/m2. In the outer districts, the price would be around VND 25-30 million/m2, and in the outlying districts, it would be about VND 20 million/m2.
Therefore, Mr. Dinh suggested that the cap on social housing selling prices at VND 25 million/m2 is only suitable for Hanoi’s suburban areas, and that the cap on social housing selling prices should be reconsidered.
Dinh Phong
– 08:37 31/05/2025
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