Hanoi's housing prices rise 10-15 per cent over three years

April 07, 2023 | 12:31

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Despite a stagnant real estate market, housing prices – particularly those for luxury apartments in Hanoi – have continued to rise.

Hanoi housing prices rose 10-15 per cent over three years

One of Hanoi's luxury apartments. Photo: SOHO @ Heritage West Lake

According to a report by the Vietnam Association of Realtors (VARS), in 2022, approximately 15,900 apartments were made available for sale with an absorption rate of 47.4 per cent, which equates to approximately 7,500 transactions. The average primary selling price was approximately $2,132 per square metre, an increase of 10 to 15 per cent compared to 2021.

In 2021, the total number of flats on the market stood at around 16,800, and the number of transactions totalled almost 7,500. Despite being in the midst of the pandemic, the sale prices still increased by 5 per cent compared to 2020.

According to the VARS, the rising cost of mid- and high-end housing is the result of consumer demand, which is expected to persist. The VARS survey also revealed that 92 per cent of respondents still intend to purchase real estate, with the majority planning to do so within the next six months.

In the view of Hoang Nguyet Minh, senior director of Commercial Leasing at Savills Hanoi, house prices in all areas of Hanoi will remain stable until the end of the first quarter. Prices on the primary market will be essentially stable, but may fluctuate marginally by year's end. On the secondary market, property prices will be affected by monetary policy.

For the year-to-date, Batdongsan.com.vn data indicates that the Hanoi apartment real estate market has displayed evidence of price appreciation. As of February, the flat market in Hanoi has recorded an excellent rate of price growth, with the average price of affordable apartments rising by 16 per cent, mid-range options climbing by 17 per cent, and the luxury sector increasing by 9 per cent.

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By Quynh Trang

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