Old apartment prices cool in Hanoi

Old apartment prices in Hanoi are showing signs of cooling following several months of shocking hikes.

Recent surveys indicate that apartment prices in the capital city have tended to decrease in the past month. Specifically, a two-bedroom apartment in Dong Phat Park View Tower in Hoang Mai district dropped from VND3-3.2 billion ($125,737) in mid-March to VND2.5-2.9 billion ($113,950) now.

After the Lunar New Year (Tet) 2024, which fell in February, the prices of old apartments in districts surrounding downtown Hanoi soared 35-40%.

Bac Thuy Hong, a resident in Thanh Xuan district, said that after Tet, her family were looking for an apartment of about 80 square meters for VND2.8-3 billion ($117,873) in Thanh Xuan district. However, the price offered at that time was too high, about VND3.5-4 billion ($157,165), so they decided to wait for the price to drop.

“From late April to early May, I saw apartment prices falling rapidly to pre-Tet levels, and I was able to find an apartment for a suitable price,” she said.

Ha Trang, a real estate broker in Hoang Mai district, said that prices of old apartments in Hanoi are showing signs of easing, but new apartments remain expensive.

"The prices of old apartments have decreased partly because homeowners and brokers need to sell them, but currently the demand remains high while the supply is scarce, so prices are not really low."

For new apartments, the prices are set by the developers, so there is not much room to budge, she added.

According to some brokers, apartment transactions are showing signs of slowing as apartments have lower liquidity than the land plot and private house segments. In addition, apartment prices have increased rapidly, so buyers are not in a hurry.

They attributed the recent hike in apartment prices to increasing input costs and limited supply. Therefore, to reduce prices, authorities need to quickly remove problems facing projects and increase the supply of affordable housing, they noted.

Previously, the Ministry of Construction reported that in the first quarter of 2024, the apartment market attracted great attention from groups with real housing needs and middle- and long-term investors. In particular, in early 2024, the prices of apartments for sale in Hanoi recorded a continuous increase in both the primary and secondary markets, surging by about 38% from 2019.

However, according to property website Batdongsan.com.vn, since the end of April, searches for Hanoi apartments have plunged by 40% compared to the peak in March. At some projects that were handed over, transactions fell sharply in April to only half of that in the previous two months.