According to the results of the announcement of the Hanoi real estate market focus by CBRE, the supply of newly opened apartments in Hanoi in the third quarter of 2023 recorded approximately 3,000 units. The total accumulated new supply in the first 9 months of 2023 reached 6,925 units, down more than 40% compared to the same period last year.
In contrast to the decrease in supply, the Hanoi apartment market this quarter showed an improvement in absorption rate with the number of units sold reaching about 3,640. Compared to the previous quarter, the number of units sold increased by more than one and a half times and was almost equal to the same period last year.
In terms of selling prices, in the primary market, the average selling price of apartments opened for sale in the third quarter remained high, up nearly 7% quarter-on-quarter and 14% year-on-year, reaching VND50.8 million/m2 (excluding VAT and maintenance fees). In the secondary market, the average selling price maintained its upward momentum from the previous quarter, reaching approximately VND32 million/m2, up 2.7% quarter-on-quarter and 0.8% year-on-year.
According to a survey by PV, the price of mid-range and affordable apartments in some inner-city districts of Hanoi is on the rise. For example, some projects in the areas of Nguyen Tuan, Le Van Thiem, Nguyen Huy Tuong, Vu Trong Phung, Le Van Luong streets... in Thanh Xuan District are priced at around 40 - 60 million VND/m2.
Apartments in Cau Giay, Nam Tu Liem, Hoang Mai, Hai Ba Trung..., the price exceeds 60 million VND/m2. The most expensive are apartments in Tay Ho area (Tay Ho District) with prices over 70 million VND/m2.
Regarding apartment rental prices, projects in Cau Giay and Thanh Xuan districts currently range from around 10 million VND to over 20 million VND/month for large apartments of about 90 square meters or more. Apartment rental prices in Tay Ho district are more expensive than other areas, depending on the area and equipment in the house, ranging from 10 million VND to about 30 million VND/month. Apartments over 130 square meters, with full amenities, can even cost up to 35 - 40 million VND/month.
Ms. Nguyen Hoai An, Senior Director of Hanoi Branch, Head of Research & Development Consulting Department of CBRE, commented: "In the next 1-2 years, limited supply while high demand will cause selling prices to continue to stay high."
Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), commented that the real estate supply in general, including apartments, will hardly have a breakthrough. Apartments from the affordable to mid-range and high-end segments will continue to be in short supply, leading to a difficult price reduction, or even an increase; at the same time, transactions aimed at real housing needs will be more numerous. However, market liquidity in general will be difficult to increase due to limited supply, tightening credit, and high bank interest rates.
In 2024, the selling price of primary apartments in Hanoi will continue to increase by an average of 3 - 8%. In particular, the price of high-end apartments will increase the most. The East of Hanoi and Van Giang District will be the areas with the highest growth in apartment prices in the past 5 years.
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