Hanoi real estate market welcomes New Year with good news

Apartment price slightly increase

According to a survey from CBRE Vietnam, in the fourth quarter of 2019, the Hanoi apartment market saw many positive changes, with apartment prices increasing steadily in all segments, with the average price recorded at $1,370 per square metre, up 5 per cent on-year.

CBRE said that in 2010-2019, the number of apartments in Hanoi has quadrupled to 304,000. The increasing demand for condominiums comes from the lifestyle of young homebuyers. Since 2010, this segment has been developing the strongest in the west of Hanoi and is currently expanding to other areas.

The Hanoi real estate market is looking at bright prospects in the New Year

Over the past four years, apartment prices have been increasing steadily. The areas recording higher-than-average increases included My Dinh, Long Bien where prices rose by about 70 per cent, from $1,070 per sq.m in 2015 to $1,810 in 2019.

In 2019, the condominium segment in Hanoi continues to maintain a high new supply of about 36,000 new launches. On average, during 2015-2019, about 35,000 new apartments were launched each year, twice as many as the average for 2010-2014 (14,800 units).

It is estimated that more than 29,000 apartments were sold in 2019, 1 per cent higher than in the previous year. Positive sales were recorded at good infrastructure projects in My Dinh and Nam Tu Liem areas, which are home to national stadiums, railways, or the F1 race track.

Notably, according to CBRE, the demand from foreigners is one of the factors behind the positive sales activities in Hanoi, especially for projects with good locations in the west of Hanoi and the West Lake area.

The average primary selling price in the last quarter of last year was $1,370 per sq.m, up 5 per cent on-year. Primary prices recorded increases in all segments. Projects in synchronised urban areas with completed infrastructure have higher selling prices than current average prices in the same area.

The F1 track bringing benefits to surrounding projects

According to Do Thu Hang, director of Savills Hanoi, the liquidity and selling price of real estate in Hanoi inching up is a good signal for the whole market. Because of good liquidity, the supply from investors has increased significantly over time, reflecting optimism in the market.

One of the reasons for the optimistic apartment market is the strong development of infrastructure in Hanoi. A series of projects on transportation, infrastructure, or entertainment facilities have been continually invested.

In particular, according to Hang, the My Dinh area in the upcoming time will be affected by the F1 racetrack, both in the hotel and apartment rental segments. Other segments, such as apartments, in the area can also take advantage.

“During the F1 race, foreign visitors will flock to the area, which will positively affect surrounding real estate projects. As for the prospect for 2023, we can expect to reach 30 million tourists, which implies great potential,” Hang said.

Accordingly, a series of projects and buildings in the My Dinh area and around the F1 racetrack are being urgently developed by investors to promptly launch to the market or hand over to customers to be ready for Vietnam's first F1 race in April.

In particular, the Matrix One project is becoming a "phenomenon" in the market after it was officially announced by MIKGroup.

The Matrix One project has become a “phenomena” in the market recently

One of the reasons making the project a highlight of western Hanoi in the past few months is its "unique" position as the F1 racetrack runs right under the project.

Therefore, residents of The Matrix One will be able to see firsthand the thrilling races of the prestigious F1 race.

Representatives of some real estate agencies revealed that the Matrix One draws in not only domestic customers but also many foreigners.