According to the Savills Property Index (SPPI) report by Savills Vietnam, the Residential Index in Hanoi remained stable during 2020–2023, with an average quarterly increase of 2.4 points, reflecting a sideways market with slight price fluctuations. In 2024, the index surged by an average of 14.9 points per quarter, signaling a robust recovery in buyer sentiment, coinciding with a wave of new launches from reputable developers.
By Q2/2025, the Residential Index rose by an additional 5 points to reach 191.1. The average selling price was recorded at VND 63 million per square meter of net saleable area (NSA), a 4% quarterly increase. Despite easing supply constraints, prices remained high, supported by sustained demand, primarily from domestic buyers. Long-term factors such as positive net migration and rapid urbanization continue to underpin this demand.
New supply to surge from 2026
Savills’ research indicates that in the first half of 2025, Hanoi saw over 14,000 new apartment launches, with more than 90% belonging to the mid-tier segment, priced at an average of VND 82 million per square meter. In contrast, affordable housing (Category C) accounted for a minimal share, priced at around VND 44 million per square meter. A decade ago, Category C dominated, but in recent years, new supply has been virtually non-existent.
Notably, absorption rates for mid-tier apartments remain high. In the first six months, mid-tier units accounted for approximately 90% of transactions. This highlights strong demand for both end-users and investors, though available supply in both primary and secondary markets remains limited.
In this context, the market is in a “preparatory phase,” awaiting legal reforms and synchronized infrastructure development to facilitate new projects, particularly in outer areas with available land and expanding transportation networks.
For the second half of 2025, approximately 11,500 apartments are expected to be launched in Hanoi, primarily in the high-end and mid-tier segments. However, product diversification remains limited. From 2026 onward, as pilot projects complete legal procedures, new supply is projected to surge. Between 2026–2027, Hanoi’s market could welcome around 46,600 units from 43 projects, mostly located outside the city center.
Approximately 11,500 apartments are expected to be launched in Hanoi in the second half of 2025.
Market may introduce more affordable products
Ms. Do Thu Hang, Senior Director, Research & Consulting Services, Savills Hanoi, commented: “In the long term, alongside National Assembly Resolution No. 171/2024/QH15 and policies promoting housing projects from 2025–2030, Hanoi will see additional supply from suburban areas. Solutions for social housing and reasonably priced apartments are also being accelerated, with some social housing projects priced at around VND 25 million per square meter.
For commercial apartment development, land costs and construction expenses significantly influence pricing, alongside profit expectations. If cost challenges are addressed effectively, the market could introduce more affordable products, meeting the substantial demand from urban residents.”
Overall, Hanoi’s real estate market will witness clear segmentation by location and project quality. Pilot housing projects, institutional reforms, and infrastructure investments, especially beyond the 3–3.5 ring road, are expected to positively impact price levels. However, this is a complex process influenced by multiple factors. Therefore, Savills advises continued monitoring and evaluation rather than premature conclusions about current price trends.
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