Condo prices in some projects are on par with adjacent villas and townhouses
According to a report by the Vietnam Real Estate Brokers Association (VARS), the housing supply structure has been severely imbalanced. There were approximately 14,500 new products on the market, a 50% decrease compared to the end of last year. However, 58% of the total supply consisted of luxury products.
The main driver of Hanoi apartment price increases is the increasingly expensive new basket. Meanwhile, some projects’ selling prices remained unchanged after the hot increase phase.
“The new housing supply mainly serves high-income groups and investors, potentially risking the sustainable development of the market,” VARS assessed.
Some apartment projects in Tay Ho district are up to VND 270 million/m2. |
In fact, in Tay Ho district, apartments are priced between VND 150-270 million/m2. In Ba Dinh district, some sky villas are offered at VND 250-260 million/m2, while regular apartments are also in the range of VND 140-200 million/m2. Notably, in Hoan Kiem district, a “luxury” apartment project is offered at a price of up to VND 500-700 million/m2. Even in Dong Anh, apartment prices reach VND 110 million/m2.
With these prices, apartments are comparable to or even more expensive than adjacent villas and townhouses in many projects in other areas of Hanoi.
According to Tien Phong’s records, the price of over VND 100 million/m2 first appeared at the end of 2021 and the beginning of 2022. Before that, Hanoi market did not record projects with this price range from developers. However, since the beginning of this year, this type of product has tended to appear more often.
One of the main reasons for the sharp increase in apartment prices is the rising input costs, including land prices, materials, legal fees, and financial costs. In addition, the limited supply of affordable apartments and social housing leaves residents with few options.
According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, the new Real Estate Business and Housing Laws have created a new legal corridor, eliminating financially weak investors. The remaining investors in the “playground” must develop large-scale urban areas with synchronous infrastructure and utilities, which entails higher costs and makes it difficult to lower housing prices.
At the same time, the market’s remaining investors have strong financial potential, strong capabilities, or land fund advantages, which will continue to maintain the phenomenon of supply monopoly. Large investors will continue to determine the market price, aiming for higher prices to maximize profits. This situation underscores the urgent need to improve the efficiency of state management in the real estate market.
Buyers are becoming more cautious
According to experts, the high prices will also affect the liquidity of this segment. While apartment prices have increased, especially in the luxury segment, the liquidity of products over VND 150 million/m2 is not high due to a limited customer base. The apartment market, in particular, and the real estate market, in general, are going through a stagnant phase, resulting in minimal transactions for luxury products.
Another critical factor reducing liquidity is the cautious psychology of buyers. After the hot phase, both real demanders and investors tend to wait and see. Many residents have genuine needs but cannot find suitable products within their budget. Meanwhile, investors are more cautious before taking action, especially with the unstable interest rate environment and the current stagnant real estate price increase.
Dr. Dinh The Hien, an economic expert, stated: “Pushing apartment prices too high while the actual value does not correspond will create a distortion in the market. This not only affects people’s homeownership but also poses the risk of a real estate bubble.”
Ngoc Mai
– 07:45 09/06/2025
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The soaring prices of apartments in Hanoi can be attributed to the high input costs of developing a commercial residential project. Land costs, which account for 25% of the total, surge to 40-50% for prime locations. Additionally, construction costs have been on a steep upward trajectory recently, contributing significantly to the overall expense.
Why Are Hanoi Apartment Prices Soaring?
The soaring prices of apartments in Hanoi can be attributed to the high input costs of developing a commercial residential project. Land costs, which account for 25% of the total project cost, surge to 40-50% for prime locations. Additionally, construction costs have been on a steep upward trajectory recently, further contributing to the overall expense.
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