The Luxury Apartment in Hanoi: A Rare Bargain at 5x Million VND per sq. m.

Supply, Pricing, and a New Positioning

CBRE’s Q2 2025 market report highlights a notable shift in Hanoi’s apartment market. This quarter alone saw nearly 6,850 new apartments introduced, bringing the six-month total to 10,760 units—the second-highest in the past five years. Notably, 100% of these new launches belong to the luxury segment, with starting prices from VND 100 million per sqm and above. This shift has pushed up the primary market’s average pricing, increasing by 6% from the previous quarter and a significant 33% from Q2 2024.

This indicates a clear repositioning as the market not only expands in scale but also upgrades its product standards. There is a growing demand from high-income customers, especially those willing to pay for quality living spaces, comprehensive amenities, and strategic locations. However, according to experts, this smart customer segment will still seek premium products within a reasonable price range, and thus, the factor of location will be considered, expanding the scope beyond the central area.

Infrastructure and Satellite Cities: Creating a “Tipping Point” for Value

As luxury projects in the inner city remain at a high price point, satellite cities with well-developed infrastructure and quick connections to the center are becoming hotspots for investment. These areas offer projects that meet both practical living needs and present significant potential for considerable mid- to long-term price appreciation.

Hanoi’s large-scale infrastructure development is creating opportunities for satellite cities, with Hoa Lac being a prominent beneficiary. It boasts a “quadruple infrastructure” advantage: transportation with the Thang Long Boulevard, Ring Road 3.5, Ring Road 4, and Metro Line 5, ensuring quick access to Hanoi’s center and key economic areas; science and technology infrastructure as the center of the National High-Tech Park, likened to Vietnam’s “Silicon Valley,” driving scientific and innovative advancements in the capital, and featuring a modern digital infrastructure with 5G, IoT, and data centers; educational infrastructure with top schools and research institutes such as TH School, FPT Software, the University of Science and Education, Vietnam National University, FPT University, and Viettel Academy; and healthcare with modern hospitals and health care centers like the Central Pediatric Hospital 2 and Central Obstetrics Hospital 2, catering to the needs of the intellectual community.

The convergence of these strategic institutions is attracting a unique group of residents—experts, engineers, researchers, and technology entrepreneurs. This group has stable incomes, high purchasing power, and a demand for premium living spaces with convenient connections and an intellectual community environment. Their demand is not temporary but rather a sustainable one, aligned with the country’s long-term development orientation.

With accelerated infrastructure development, the formation of an intellectual community, and a strategic vision until 2050, Hoa Lac is predicted to become one of the fastest-growing real estate markets in the northern region, offering rare long-term stability for living and investment.

Seizing the Opportunity to Own Luxury Apartments in a “Price Trough”

In reality, new luxury apartment products entering the Hanoi market at below VND 60 million per sqm are almost non-existent. Projects in the Hoa Lac area offering prices in the VND 50 million range are considered rare finds.

Experience from developed markets shows that real estate in areas with advanced infrastructure often sees significant price increases within three to five years as key transportation routes become operational and resident communities take shape.

Projects in the west of Hanoi rumored to be priced at VND 50 million per sqm are considered “rare gems” in the market.

Analysts agree that the current phase presents an opportunity to access luxury products at prices lower than Hanoi’s average. However, as infrastructure improves and a wave of residents—especially experts, engineers, and high-quality human resources—move in, this category of properties will quickly become scarce, and the VND 50 million price range will be a mere “market memory.”