Over the past year, apartment prices in Hanoi have seen increases ranging from 400 million VND to over a billion VND per unit, depending on the area and size, compared to 2022 and earlier years.
According to real estate experts, although the real estate market still faces many difficulties, apartments are a bright spot as those with genuine housing needs are showing interest. The high demand is causing the prices of older apartments to increase daily, establishing a new price level.
A survey conducted by VTC News on the morning of March 31st showed that the price of apartments in the Ros Town project, located at 79 Ngoc Hoi, Hoang Mai, Hanoi, ranges from 53 to 58 million VND/m2, with basic interior furnishings including bathroom fixtures and washbasins.
Specifically, a 104m2, 3-bedroom apartment on the 15th floor with the main entrance facing Southeast is priced at 5.879 billion VND, equivalent to 56.2 million VND/m2; an 89m2 apartment on the 26th floor with the main entrance facing Northwest is priced at 4.8 billion VND, equivalent to 54 million VND/m2. These prices have increased by approximately 800 million VND per apartment compared to the beginning of 2023.
Meanwhile, at the Goldseason project, located at the intersection of Nguyen Trai and Le Van Luong streets, 2-bedroom apartments with an area of 68-90m2 have increased from 2.8-3.3 billion VND/unit to 3.9-4.2 billion VND/unit, an increase of 700-900 million VND/unit compared to more than a year ago.
Rising apartment prices are making the dream of owning a home increasingly out of reach for low-income earners. (Illustrative image: Lao Dong Newspaper).
Meanwhile, apartment prices in projects within the Vinhomes Smart City complex have also seen increases ranging from 500 million to over a billion VND per unit in just over a year.
To buy a small 30m2 apartment here, customers need to prepare approximately 1.8 billion VND. Meanwhile, 45m2 apartments are also being offered for sale at prices ranging from 2.5 to 2.7 billion VND. For apartments with an area of 60m2 or more, the common asking price ranges from 3.1 to 6.5 billion VND.
Apartment prices have been continuously rising sharply, surprising many prospective buyers. "I just checked the developer's price list, and the price increase is shocking," shared Ms. Nguyen Thi Minh Huyen (Hoang Mai, Hanoi).
Rising apartment prices have forced many people to postpone their plans to find a place to live in the capital.
Nguyen Hai Binh, a young lecturer at a university, said that with his savings of 1.5 billion VND, he has been searching for an apartment outside the central districts of Hanoi. However, due to the scarcity of new apartments for sale, prices have been continuously pushed up to levels beyond his means.
“I had to put aside my dream of buying an apartment with 1.5 billion VND. Now, if I want to buy an apartment, I would have to borrow at least another 1.5 billion VND to afford a 70m2 unit. I've chosen to continue renting until I get married and then think about it again,” Mr. Binh said.
According to statistics from a real estate website, the average asking price of apartments in Hanoi in the first three months of the year is "climbing," increasing by up to 17% compared to the same period in 2023, with many projects seeing price increases of over 20% in just one year.
Accordingly, the selling price of affordable apartments is approximately 35-50 million VND/m2; the selling price of high-end apartments is over 50 million VND/m2, commonly ranging from 60-70 million VND/m2. For example, in the western area of Hanoi, some projects have announced the lowest price at 66 million VND/m2, excluding VAT.
According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS), the reason for the high increase in apartment prices is the insufficient supply in the market while the demand for this segment is very high.
Another reason cited by Mr. Dinh is the delay in legal procedures, which has led to a sharp decrease in product supply, with very few projects meeting the requirements for sale. Most of the products that are eligible for sale belong to the high-end and luxury segments. Therefore, the selling prices are generally high.
Another reason for the high price of apartments is the increased investment and construction costs due to rising input material prices, labor costs, and access to finance. Low interest rates coupled with record-high inflation in the past also contributed to the sharp increase in housing prices.
"High apartment prices are making it increasingly difficult for people to buy an apartment, as the demand for real housing is growing, new projects are scarce, and people's incomes are limited. This is a real challenge for low-income earners. In the future, apartment projects will continue to increase in price due to scarcity, and developers will have to maximize profits as costs are pushed up," Mr. Dinh said.
To find solutions to alleviate difficulties and cool down apartment prices, the Prime Minister has assigned the Ministry of Construction to direct and guide real estate businesses to restructure their product segments and reduce costs. At the same time, the Ministry of Construction needs to develop appropriate, timely, and effective solutions to restructure the segments to cater to those with genuine housing needs, social housing, housing for workers, and low-income earners.
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