After years of steady increases, Hanoi’s real estate market is beginning to cool, with some properties seeing price reductions of hundreds of millions of VND within days.

The slowdown is apparent across both apartments and land, as sellers respond to declining demand and financial constraints among buyers.

Ms. T. Huong from Ha Nam has been searching for an apartment in Hoang Mai District but found prices too high until recently. “In October, a property I was interested in was listed for several hundred million VND more than it is now. Last week, the owner needed cash urgently and dropped the price by 200 million VND,” she shared.

Surveys on property websites reveal a downward trend. For example, in Nam Tu Liem District, apartments once priced at 63 million VND per square meter in October have dropped to 61 million VND. In Long Bien District, prices have fallen from 55-65 million VND to 50-60 million VND per square meter.

Land prices are also declining. Mr. T. Cong, who recently purchased a plot in Thanh Oai District, noted, “The seller initially asked for 74 million VND per square meter. By November, prices in the area started to drop, and we closed the deal at 59 million VND.”

Cooling market dynamics

The shift is attributed to reduced transaction volumes as buyers hold off amid financial concerns. A real estate executive in Ha Dong District said, “Two-bedroom apartments priced between 3-4 billion VND are still in demand, but those around 5 billion VND are struggling to find buyers. Many sellers are cutting prices as a result.”

Experts agree the surge in apartment prices has peaked. Mr. Pham Duc Toan, CEO of EZ Property, noted, “Apartment prices in Hanoi had been climbing too quickly. Now, as buyers pause their plans, the market is stabilizing, and transactions have slowed.”

Amid the price adjustments, Hanoi’s affordable housing market is showing signs of revival. Several new social housing projects are under construction, such as a 460-unit project in Dong Anh’s Uy No Commune, slated for completion in October 2026, and a 440-unit complex in Ha Dinh, Thanh Tri District.

The Hanoi Department of Construction reports that 69 social housing projects are underway citywide, with over 10,270 units completed since 2021. An additional 5,923 units are expected by 2025. The city is also preparing to invest in 15 new sites for social housing, targeting affordable options for workers and low-income families.

This shift towards affordable housing indicates a long-term adjustment in Hanoi’s real estate market as developers and buyers adapt to changing economic conditions.

Hong Khanh