Real estate prices in Hanoi continue to increase sharply, reaching 195 million VND/m2

According to CBRE's report, in the second quarter of 2023, the selling price of primary housing in Hanoi recorded an increase of 8% compared to the previous quarter and reached nearly 195 million VND/m2. However, transactions in the quarter decreased sharply.

Meanwhile, the average secondary price of land-attached housing in Hanoi reached VND154 million/m2 (including construction costs and excluding VAT), down 1.6% compared to the previous quarter and 13% compared to the peak in the third quarter of 2022.

Land prices in Hanoi are still increasing strongly, land price is 195 million VND/m2, image 1 — Real estate prices in Hanoi continue to increase sharply, reaching 195 million VND/m2. (Photo: DM)

Some suburban areas including Gia Lam, Me Linh and Hoai Duc, which recorded significant growth in secondary selling prices in the 2021-2022 period, have now seen higher decreases than other areas, in the range of 5-6% quarterly.

In the second half of the year, it is expected that more than 3,250 units will be added to the total new supply of landed housing for the whole year in Hanoi. Accordingly, the total new supply for sale this year is forecast to reach nearly 4,650 units.

For the apartment market, prices remain relatively high. By the end of the second quarter of 2023, the average primary price of the Hanoi apartment market will reach about VND47.5 million/m2 (excluding VAT and maintenance fees), equivalent to an increase of 1.6% compared to the previous quarter and 9.5% compared to the same period last year due to the increased proportion of high-end products.

In the secondary market, the average selling price reached approximately VND31 million/m2, almost unchanged from the first quarter but up 3.2% year-on-year. By location, most areas saw an increase in selling prices compared to the same period last year, with Dong Da, Cau Giay, Ha Dong and Bac Tu Liem districts seeing high secondary price increases of 5-6% over the past year.

It is expected that from now until the end of the year, the number of new apartment launches will improve with more than 6,300 units, bringing the total new supply for the whole year of 2023 to 10,500 units. Most of the new launches will come from the next launches of projects in urban areas in the West of Hanoi and in the high-end segment.

Therefore, the average primary price is forecast to remain in the range of VND47-49 million/m2 by the end of the year, equivalent to a 5% year-on-year growth.

Source