Hanoi’s Apartment Market: A New Growth Phase on the Horizon
Introduction to the Upcoming Surge
Hanoi’s apartment market is entering an exciting new phase, anticipated to peak in 2026. This upcoming surge is fueled by a significant supply wave, as a plethora of projects spanning all segments—social housing to luxury developments—kick off. Analysts are keeping a close eye on this trend, noting that while the capital remains Vietnam’s most active condominium market, balancing rising prices and heavy supply will be critical.
Current Market Landscape
As of now, Hanoi leads the nation with around 70,000 apartments under construction, according to recent data from Biggee. This extensive inventory reflects a robust long-term growth trajectory within the city. Current primary prices hover between VND 76–90 million (around USD 2,880–3,400) per square meter, while secondary-market units show a slightly lower range of VND 60–70 million (USD 2,270–2,650).
Delivery Statistics and Future Projections
To date, Hanoi has delivered approximately 390,000 apartments, earning the title of the city with the highest total nationwide. However, Biggee has highlighted potential absorption challenges due to elevated pricing and abundant supply. A bright spot in this statistic is the ongoing development of 9,000 social housing units, which could significantly stabilize the market if completed on time and with high quality.
Supply Dynamics and Urban Development
Hanoi’s supply advantage largely stems from its concentration of projects in urban-core areas where land prices are steep. Surprisingly, although development focus is currently shifting towards the east, most upcoming projects remain conveniently close to the city center, illustrating a strategic and controlled expansion approach.
Savills predicts that by the fourth quarter of 2025, close to 8,900 new units will enter the market, primarily comprising mid-range Class B offerings. However, the real boom in supply is expected to commence in 2026, as a wave of fully approved projects rapidly progresses.
Market Preferences and Trends
Experts, including Do Thi Thu Hang, Senior Director of Research and Consulting at Savills Hanoi, emphasize that demand will be dominated by projects from reputable developers with strong legal documentation and prime locations. Smaller units—particularly those with one or two bedrooms—are likely to garner the most interest.
Hang also notes a potential easing of Class C unit shortages as approvals accelerate and infrastructure upgrades alongside social housing programs are rolled out. Several projects are nearing completion of legal procedures and are set to launch soon, providing much-needed affordable options for residents.
Performance Insights for 2025
Savills reported a strong performance in the third quarter of 2025, recording 6,300 newly launched apartments, a slight decline from the previous quarter yet reflecting annual growth. Transaction volumes also surged, reaching 7,300 units, with new supply absorption exceeding 80%, significantly outperforming the market average.
The appeal for buyers remains rooted in new projects that offer prime locations, reputable developers, clear legal statuses, and modern designs coupled with flexible payment plans. Notably, high-end Class A projects are witnessing substantial demand, with many units pricing above VND 100 million (USD 3,800) per square meter.
Market Absorption Rates and Consumer Behavior
Both Class A and B units displayed robust performance in the third quarter, achieving an impressive overall absorption rate of 81%. Considering inventory levels, the market-wide absorption rate stands at 64%, signaling a recovery trend.
David Jackson, CEO of Avison Young Vietnam, conveys that the apartment segment will continue to be the market’s backbone into 2025–2026. Yet, he warns that performance may fluctuate based on location and type of product. While end-user demand remains strong, investors are becoming increasingly discerning, focusing their efforts on projects with central locations, superior infrastructure, and impeccable legal statuses.
Looking Ahead: The Road to a Balanced Market
Analysts forecast that the anticipated supply surge beginning in 2026, paired with enhancements to social housing and infrastructure, will guide Hanoi’s apartment market towards a healthier and more balanced cycle. As competition escalates, it is conceivable that prices will gradually align themselves closer to levels accessible for a broader range of buyers.