In 2025, the New Supply of Apartments in Hanoi is Expected to Remain Robust
Hanoi’s real estate market is set for an exciting period of growth in 2025, with new apartment supply projected to surpass 31,000 units, a remarkable increase from the previous year. This surge reflects a significant shift in the capital’s housing landscape, marking the highest level of new supply since 2020.
A Tripling Supply Since 2023
According to CBRE’s recent report presented at the 2024 Real Estate Market Overview event, the new apartment supply in Hanoi has tripled since 2023, hitting nearly 30,900 units. This figure underscores the city’s robust recovery and development in the real estate sector. With almost 38,000 new residential products expected to hit the market, the opportunities for both buyers and investors are abundant.
Photo: VGP
The Diverging Paths of Hanoi and Ho Chi Minh City
Vo Huynh Tuan Kiet, Head of the Residential Project Marketing Department at CBRE Vietnam, highlighted a stark contrast between the two main housing markets in Vietnam. While Hanoi experiences unprecedented growth in new apartment supply, Ho Chi Minh City’s numbers have dropped to a mere 5,050 units, the lowest since 2013. This disparity draws attention to the differing demands and investment strategies within Vietnam’s real estate landscape.
Price Soars to Eight-Year High
As the supply increases, so do the prices. By the fourth quarter of 2024, average apartment prices in Hanoi reached an impressive VND72 million (approximately $1,181) per square meter. This represents a staggering 36% year-on-year increase, marking the highest price growth observed in the last eight years.
Most of the new listings consist of high-end, fully documented projects in popular urban areas such as Nam Tu Liem and Gia Lam districts, which are quickly becoming residential hubs. This influx is driving primary prices upward, with sales exceeding 70% in these regions.
Photo: Thanh Hai/ The Hanoi Times
Expanding Horizons in the Outskirts
Not just limited to the city center, the outskirts of Hanoi are also witnessing a rise in high-end supply. Districts like Dong Anh and Van Giang in Hung Yen province are seeing significant developments, catering to the demand for upscale living options. Additionally, a new mid-range project in Thach That District aims to alleviate some of the supply shortages in that segment, thus addressing the diverse needs of potential homeowners.
Ho Chi Minh City: A Different Story
In stark comparison, Ho Chi Minh City continues to struggle with limited new supply. The average price per square meter in the city has climbed to VND76 million ($2,989)—a nearly 24% increase year-on-year. In this market, over 70% of new listings consist of high-end and luxury projects, with notable price hikes of 10% to 40% in subsequent phases.
Despite the high prices, developers are working to attract buyers through various incentives, including five-year payment plans and discounts ranging from 5% to 16%. Consequently, many newly launched projects enjoy sales rates around 70%, with a few exceptional locations nearing full occupancy.
The Secondary Market Dynamics
In Hanoi, the secondary market prices are not far behind those in Ho Chi Minh City, averaging VND48 million ($1,887) per square meter. A yearly increase of over 26% has established this as the highest rate in recent history.
On the other hand, secondary prices in Ho Chi Minh City are also on the rise, with quarterly increases pushing average prices up by 1% and yearly growth at 7%. The newly operational Metro Line 1 is a significant factor driving prices in specific areas, particularly in the former District 2 and the Thu Duc City region.
Future Outlook for 2025
Experts at CBRE anticipate that Hanoi’s new apartment supply will continue to thrive in 2025, projected to exceed 31,000 units. Most of these developments are expected to center around high-end and luxury segments, particularly in the Hoang Mai, Long Bien, and Dan Phuong districts. This influx of new units is likely to sustain primary price growth around 6-8% per year, further solidifying Hanoi’s position as a vital hub in Vietnam’s real estate market.
As we advance into 2025, Hanoi’s evolving real estate landscape offers promising opportunities for investors and homeowners alike, reinforcing the capital’s significance in the national market.