According to a report by One Mount Group Real Estate Company, the selling price of primary apartments in Hanoi in the second quarter reached about VND80 million/m2, up 5.6% over the previous quarter and skyrocketing 24% over the same period in 2024.
CBRE Vietnam's recent Hanoi real estate market focus report also said that the average selling price of primary apartments at the end of the second quarter reached about VND79 million/m2 (excluding VAT, maintenance fees and discounts), up 6% quarter-on-quarter and 33% year-on-year.
Many new projects from the center to the outskirts of Hanoi launched in the first half of this year also recorded a new price, ranging from 80-170 million VND/m².
The survey shows that the Galia Hanoi project (Yen So ward) of Tan A Dai Thanh has an average price of 80 million VND/m²; the Greenera Southmark project (Thanh Tri commune) of Tan Hoang Minh has an estimated price of 80 - 90 million VND/m²; the LongBien Central project of Taseco Land has an estimated price of 118 million VND/m².
Or like The Matrix One project phase 2 of MIK Group has an average price of 116-166 million VND/m²; Sun Feliza Suites (Cau Giay ward) ofSun Group has an expected price of 160 million VND/m²...
Not only in the primary market but also in the secondary market, prices have started to increase again in the past month, according to the latest survey by PropertyGuru Vietnam Company.
Specifically, at the An Binh Palza project, the selling price and transaction price have also increased over the past month. For example, the 2-bedroom, 1-bathroom apartments with a 50-year ownership period, in February 2025, the selling price ranged from 3.3-3.5 billion VND/apartment, but now the selling price on the market is at 3.6-3.8 billion VND/apartment.
At the Home City project, the price of a 2-bedroom, 2-bathroom apartment with an area of over 70 square meters also increased by 200-350 million compared to the beginning of May, from the price of 6.2-6.3 billion VND/apartment, increasing to 6.5-6.7 billion VND/apartment. The Hanoi Center Point project with the 2-bedroom, 2-bathroom product line, the current selling price is over 6 billion VND/apartment, there is no apartment at the price of 5.7-5.8 billion VND/apartment after the Lunar New Year.
Why do prices keep rising?
Explaining the continuous increase in apartment prices, according to experts, one of the first reasons is the imbalance between supply and demand.
Mr. Tran Minh Tien, Director of One Mount Group's Center for Market Research and Customer Insights, analyzed: The difference in supply structure and product segmentation is the main reason for the rapid increase in apartment prices in Hanoi.
In Hanoi, new supply in the second quarter focused on the high-end and luxury segments. Notably, four luxury projects with a large number of products were launched with an average price of more than VND80 million/m² (excluding VAT and maintenance costs), contributing to the increase in average selling prices.
In fact, Mr. Tien said that there were no mid-range projects launched in Hanoi this quarter. Apartments with lower prices (under VND65 million/m2) were only scattered in the eastern urban area of Hanoi or neighboring areas.
As for the secondary market, Mr. Tien commented that the cash flow has clearly shifted from illiquid land products to the handed-over apartment segment. Stability, rental ability, quality of life and complete legal documents are the factors that help transferred apartments maintain their appeal.
Mr. Tien believes that if the recovery momentum continues in the coming quarters, secondary apartments will continue to play a pivotal role in maintaining liquidity for the entire real estate market in 2025.
The second reason for the increase in apartment prices is the scarcity of supply. Mr. Pham Duc Toan, CEO of EZ Property, commented that in the past, the market has not had any new projects that have been licensed to launch. Most of the projects that are being opened for sale are old projects of large investors.
Sharing the same view, Mr. Nguyen Van Dinh - Vice President of Vietnam Real Estate Association - also said that the supply of apartments in Hanoi is really scarce. The number of projects has been increasingly limited in recent years, while the demand of customers, especially young families, is still high.
In addition, according to Mr. Dinh, the cause is also due to the unbalanced product structure in the market, causing the price of apartments in the primary and secondary segments to be pushed up. As a result, people with real housing needs lose access.
Mr. Nguyen Quoc Hiep - Chairman of GP. Invest also affirmed that the recent increase in apartment prices in Hanoi is due to the scarcity of supply, in the context of projects being stuck due to legal issues.
In addition, according to him, current apartment prices do not reflect true value because there are projects that, after calculating the costs for investors to implement such as land rent, materials, labor, etc., do not reach that price.
In addition, according to experts, another reason for the high housing prices is the current very high input costs. The input costs of a commercial housing project today include: 25% land costs, the closer the project is to the center, the higher the land costs, the prime location accounts for 40-50% of the cost and value of real estate.
In addition, investment procedure costs account for about 5-10% of the total cost, and can increase to 15% if the procedure is prolonged. Capital costs account for about 5-10%, and there is also a group of construction costs (materials, labor, machinery) that are being pushed up due to escalating prices and increased labor costs.
From this input structure, apartment prices are forecast to continue to increase and are unlikely to decrease.
How to cool down?
To reduce apartment prices in Hanoi, Mr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS) said that efforts should be made to speed up the progress of social housing projects. Authorities should proactively regulate supply by effectively using planning tools, adjusting planning, and allocating additional clean land funds to help investors implement social housing projects as soon as planning is established.
In the long term, to stabilize the price of apartments in particular and housing products in general, there needs to be strong participation from the State. In particular, it is necessary to continue promoting the development of transport infrastructure, shortening the travel time from satellite areas to the city center, and the supply from the suburbs will reduce housing prices.
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, commented: The State needs to issue a standard process for construction investment for commercial housing projects to determine the time limit for each administrative procedure, encourage departments, branches and localities to minimize the number of requests for additional documents, in order to shorten the time to complete all administrative procedures.
In addition, competent state agencies need to focus on removing legal obstacles for real estate projects to increase housing supply. Increasing supply will help stabilize housing prices according to the law of supply and demand and the law of market competition.
Mr. Chau also suggested that real estate corporations and businesses reduce housing product prices, reduce profit expectations, not keep prices high, increase discounts and have promotional and after-sales policies to stimulate consumer demand in the market, creating cash flow and liquidity.
Real estate businesses also need to shift their investment to the affordable housing segment, with prices suitable to people's incomes, and participate in the development of social housing to be able to access preferential credit packages.
Mr. Pham Duc Toan, CEO of EZ Property Company, believes that the key to "cooling down" real estate prices will be social housing urban areas in the gateway areas of the capital. When these projects are completed, housing prices in Hanoi will decrease by 30 - 40% compared to present.
According to Mr. Toan, the State should proactively use budget capital to develop social housing. The implementing agencies can even put profit targets aside and consider this a public investment, implemented for the purpose of social security.
Source: https://baolangson.vn/gia-chung-cu-ha-noi-lien-tuc-phi-ma-cach-nao-de-ghim-cuong-5053411.html
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