A report on the real estate market in the third quarter by Savills showed that apartment prices in Hanoi continued to increase, both in new and old projects.

The prices of apartments in new projects have increased by 6 percent Q-o-Q and 28 percent Y-o-Y to VND69 million per sq m. The primary apartment price increases have also pushed prices of older projects to VND51 million per sq m, up 10 percent Q-o-Q and 41 percent Y-o-Y.

The number of apartments sold in the third quarter was 6,800, up 35 percent Q-o-Q and 226 percent Y-o-Y. Of these, sales of mid- and high-end apartments made up 98 percent of total transactions.

According to Savills, in the first nine months of 2024, 70 percent of apartments were transacted at prices of over VND4 billion, much higher than the 2 percent in 2020. Meanwhile, the transactions of products priced at VND2-4 billion accounted for 29 percent. Only 1 percent of apartments sold had prices below VND2 billion.

The figures show a serious imbalance in product structure. After a long period of continued increase, apartments priced at over VND4 billion have become the common price level in Hanoi. With just VND2-3 billion, people can hardly find apartments to buy.

In its recently released report, the Ministry of Construction (MOC) showed that apartment prices in Hanoi increased sharply, especially in the districts of Cau Giay, Thanh Xuan, Tay Ho and Hai Ba Trung, and the price increase had spread to neighboring areas.

The housing price increase in the first six months of the year was 12.5 percent compared with late 2023.

Also according to MOC, by the end of the second quarter of 2024, after new housing price levels were set, apartment transactions showed signs of slowing down.

MOC, noting that price increases are mostly in Hanoi and HCM City because of a shortage, said the unavailability of mid-end and lower-priced apartments had pushed apartment prices up.

Savills predicted that about 9,700 apartments would be for sale by the year end, and from 2025 onwards, 10,000 apartments from 106 projects will be marketed, mostly in mid- and high-end market segments.

GSO’s (General Statistics Office) report released in April 2024 showed that the average income of Hanoians was VND6.869 million a month in 2023, while the figure was VND4.11 million in 2014, which meant a very slow increase in their incomes.

Meanwhile, the average housing price increase in the first six months rose by 12.5 percent over late 2023.

Hong Khanh