An "old" apartment building that is 20 years old, has increased in price by 25% in 1 year.

According to Savills report, the selling price of primary apartments in Hanoi set a record, up to 53 million VND/m2. Compared to 2019, this price has increased by 73%. However, 53 million VND is only the average figure, in reality, apartment prices, especially in the inner city area, are very high.

Apartment projects in the inner city, including Hoan Kiem, Dong Da, Hai Ba Trung and Ba Dinh districts, have very little new supply. Prices are very high, belonging to the high-end and super-end segments.

A 20 year old apartment building has increased in value by 25 per year. Image 1 — Illustration photo. (Source: Vietnammoi)

According to the reporter of the Journalist and Public Opinion Newspaper, a project in Dong Da district is currently on sale at a price of over 70 million VND. Meanwhile, some projects in the super-class segment are in the completion stage in Hoan Kiem district with an opening price of over 100 million VND/m2.

Meanwhile, in more distant areas, such as Nam Tu Liem, Long Bien or Gia Lam, the supply is somewhat more abundant, but the selling price is not cheap, the current price is also set at over 40 million VND/m2.

In the secondary market (buy and sell market), the selling price is somewhat more "dancing". A recent survey by batdongsan.com.vn showed that an "old" apartment project over 20 years old, located next to Pham Hung street, just last year the selling price of a 2-bedroom apartment fluctuated between 2.6 - 2.8 billion VND, but now the owner is selling it for up to 3.2 - 3.5 billion VND/apartment, this increase is equivalent to 25%.

Also according to a survey by batdongsan.com.vn, the price of apartments in Hanoi in Cau Giay district, especially apartments on Trung Kinh street, also increased by 200 - 300 million VND/apartment compared to last year.

Similar increases were also recorded at apartments on Duy Tan, Tran Thai Tong, Thanh Thai, Dich Vong Hau, Cau Giay, Tran Dang Ninh streets,...

In Thanh Xuan district apartments, on Vu Trong Phung, Nguyen Tuan, Le Van Luong, Nguyen Huy Tuong streets... also recorded a very high increase, around 200 - 300 million VND/apartment.

Apartments in Dong Da district and Ba Dinh district, two of the most central districts of Hanoi, where there is almost no land left to develop new projects, the increase in prices of some apartments has been pushed up to 300 - 500 million VND/apartment.

Ms. Do Thu Hang, Senior Director of Savills Hanoi, pointed out that this is due to the high land prices and construction costs. In addition, the need to invest in improving the quality of products and surrounding infrastructure and utilities, and internal projects also lead to primary market prices, or prices of newly launched projects, always being higher than the general market level of apartments for sale.

Mr. Nguyen Trung Tuan, a real estate expert, said that there are many reasons for the increase in apartment prices in both the primary and secondary markets. However, the main reason is the scarcity of supply, pushing up the price of available houses. Therefore, only when the supply is improved will the increase in house prices be curbed.

"Because of the scarce supply, while the demand for buying houses is increasing, all available apartment projects are increasing in price. Except for high-end and super-end projects that are not for the majority, which tend to decrease. Therefore, even apartment projects that are "old" and "old" will increase naturally," said Mr. Tuan.

According to Mr. Tuan, in the next 3-4 years, supply will still be scarce, which will continue to cause housing prices to increase. Even in the next 5 years, when supply improves, apartment prices will only stop increasing sharply, and will hardly decrease.

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