The Hanoi real estate market witnessed the launch of approximately 8,000 new apartments in Q2 2025, according to Savills Vietnam’s Q2 report. For the first half of the year, total new supply reached about 14,900 units, marking a 121% increase compared to the same period in 2024.
Despite the significant rise in supply, primary selling prices remained high at VND 91 million per square meter, reflecting a 40% year-on-year increase. Notably, apartments priced above VND 4 billion continued to dominate the market (67%), whereas primary supply below VND 2 billion was nearly non-existent.
In terms of liquidity, Savills recorded approximately 5,200 apartment transactions in Q2, a slight decrease from the previous quarter but a modest increase year-on-year. On average, for the first six months of 2025, the entire market witnessed around 13,100 apartment sales, representing a 26% year-on-year increase. Notably, 99% of these transactions belonged to the A and B segments.
Ms. Do Thu Hang, Senior Director of Consulting and Research at Savills Hanoi, shared her insights: “The primary selling prices continued to rise despite abundant supply due to the projects launched in Q2 being mostly located in prime locations and positioned in the luxury segment. Additionally, the scarcity of central land plots and increasing development costs prompted many investors to focus on optimizing commercial value.”
According to Ms. Hang, the market currently exhibits stable purchasing power and improved liquidity compared to the previous year, indicating no immediate pressure to reduce prices. Furthermore, the expectation of future value appreciation due to infrastructure improvements and urbanization rates also influences investors’ willingness to accept current price levels.
The concentration of new supply in the B segment, coupled with stable secondary market prices and no significant decline, contributes to stabilizing overall market prices.
Analyzing the buyer structure, Ms. Hang revealed that while owner-occupiers were present in Q2, they accounted for a smaller proportion compared to investors.
“The current apartment price level is relatively high, limiting practical demand to some extent. Newly launched projects are located far from the city center or densely populated areas, so buyers are primarily focused on future price appreciation. A portion of these buyers also intends to use the apartments upon delivery, with the flexibility to switch between self-use and investment purposes depending on market fluctuations. This front-running mentality has made investors the dominant force in total transactions,” Ms. Hang explained.
Savills also noted that investors remain optimistic, especially in areas with good locations and existing or planned infrastructure. These factors continue to support price levels in projects with advantages and enhance investment value over time.
However, Ms. Hang cautioned that profit expectations in the current context require careful consideration. With large-scale projects and already high prices, achieving the expected profit margins may not be easy, especially if liquidity faces challenges when investors need to quickly divest or shift to other segments.
Nonetheless, with a long-term investment strategy, particularly in areas with rapid urbanization and development potential, opportunities are still considered abundant.
Looking ahead to the supply outlook, Hanoi is expected to introduce approximately 11,500 new apartments to the market by the end of 2025, mainly focusing on the A and B segments.
According to Savills, from 2026 onwards, as the pilot projects complete their legal procedures, new supply is anticipated to surge. In the 2026-2027 period, the Hanoi market is expected to receive about 46,600 apartments from 43 projects, mostly located outside the city center, which could slightly lower the overall price level. However, Ms. Hang pointed out that projects in areas with limited land supply, high demand, and developed by reputable investors are likely to maintain or increase their prices.
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