In 2024, the Hanoi apartment segment witnessed a rapid price increase, reaching more than 70 million VND/m2 by the end of the third quarter, with many mid-range projects even having prices pushed up to 100 million VND/m2. There are no more projects on the market priced below 60 million VND/m2, including old projects. During the fever, prices increased daily and weekly. It is worth noting that despite the high prices, liquidity is still good and there are still buyers.
The growth momentum will slow down in 2025
However, according to Associate Professor Dr. Dinh Trong Thinh, by 2025, the increase in apartment prices in Hanoi will slow down, the market will tend to be more stable, no longer “hot” as in the past. Accordingly, the cash flow of buyers will tend to shift from areas with high prices to areas with more competitive prices and more room for growth. Apartments will give up the leading position to other types such as private houses, townhouses, land plots…
Mr. Nguyen Van Ngoc, Chairman of the Board of Directors and General Director of RB Group Corporation, also analyzed that the type of apartment buildings with real use value (for living or renting) has increased sharply in price in recent years. In addition, the factors pushing up the price of apartments in Hanoi in recent times are also due to the impact of the new land price list, increased construction material costs and investors upgrading utilities to meet the needs of buyers.
Apartment prices in 2025 are forecast to be difficult to decrease but will no longer increase “hotly”. (Illustration: Minh Duc).
By 2025, although real estate prices may continue to increase next year, the growth rate will be slow due to signs of slowing purchasing power in the context of limited new supply, more time needed to resolve legal problems, and the new high price level increases transaction and investment costs.
Similarly, Ms. Nguyen Hoai An – Director of CBRE Hanoi – said that the apartment market in Hanoi is gradually relieving the “thirst” for housing supply shortage. Prices will not decrease but will no longer increase “hotly” like in the recent period, the increase is about 5-8% compared to 2024. Currently, apartment products for living and investment are quite diverse, the price level is higher than previous years. Therefore, waiting for housing prices to decrease is not feasible.
According to the expert, real estate prices can only decrease when there is excess supply, slow demand growth affecting market liquidity, affecting selling prices, or there are major fluctuations in the macro economy, financial markets, economic growth…
In Vietnam, although the economy is currently growing steadily, interest rates, inflation, and exchange rates are controlled at reasonable levels, the housing supply is still in a state of shortage and imbalance between segments… Therefore, in the short term, it is very difficult for real estate prices to decrease.
CBRE’s report also forecasts that in 2025, the supply of new apartments could reach over 30,000 units. Prices will not decrease but will no longer increase as rapidly as in the recent period, possibly only increasing by 5-8% compared to 2024. As of the end of the third quarter of 2024, Hanoi has had 4 consecutive quarters of rapid apartment price increase, reaching 26% year-on-year.
Mr. Dinh Minh Tuan – Business Director of PropertyGuru Vietnam also commented that in 2024, nearly 67% of new supply in the market will be in the high-end and luxury segment in Hanoi. It is forecasted that in 2025, the primary segment in Hanoi with prices below 50 million VND/m2 will disappear.
” The price level of apartments in the coming time is very difficult to decrease. However, the market next year will be stable and stay at a high level, not as hot as it is now ,” Mr. Tuan commented.
Continue to lead the market
It is predicted that apartment prices will not be as hot as in 2024, but experts still believe that this type of apartment meets the real needs of buyers and will continue to lead the market in 2025.
According to Mr. Tran Minh Tien, Director of OneHousing Center for Market Research and Customer Insight, in 2025, apartments will continue to be the leading type of real estate market in Hanoi.
Explaining this issue, Mr. Tien said that every year Hanoi increases by 200,000 people, the demand for housing is increasing. Apartments are a real type of housing with a relatively affordable price compared to ground-level houses, and legal procedures for bank loans are easier for apartments with certificates. Within the budget of 3-5 billion VND, apartments will still be “favored” when most projects are located on wide roads, fire prevention is guaranteed, and there are many internal and surrounding facilities.
In addition, the quality of the project is also what helps apartments compete with other types of products. According to Mr. Tien, with fierce competition and increasing customer demand, investors are increasingly paying more attention to construction quality and handover standards, along with many preferential sales policies with loan interest support packages and payment extensions. This has recently helped apartments become a new investment channel, attracting more customers to buy for investment to accumulate and increase assets, helping to significantly increase absorption in the market.
Meanwhile, Mr. Tran Quang Trung, Business Development Director of OneHousing, also believes that in 2025, apartments will still be a product that meets the needs of cash flow investment and investment waiting for price increase. ” Apartments are a segment with a moderate total price, many people can participate in investment, besides, the demand for apartment products in the future is still very high ,” said Mr. Trung.
In addition, if considering the same investment level, apartment products are showing superior values compared to townhouses and residential land products in terms of rental yield and price increase rate. Specifically, the profit margin of apartments is currently the highest in the market, averaging over 30%/year.
Source: vtcnews.
Source: Vietnam Insider