Hanoi apartment prices skyrocket

The primary asking price of apartments in Hanoi reached nearly VND60 million ($2,422) per square meter at the end of 2023, and they have continued to rise by 10-15% this year.

After living and working in Hanoi for over 20 years, a couple from the north-central province of Thanh Hoa owns an old apartment in Dong Da district, but it is too small for their five-member family, so they are looking for a new larger apartment.

Over the past year, they said they had been unable to find an apartment suitable for the family at a price they wanted, about VND50 million ($2,018) per sqm.

"Our monthly income is about VND30 million ($1,211). After deducting living and education expenses, there's not much left. We'll get some money from the old apartment, but there's nothing on the market now priced at VND50 million per sqm. This means we will have to borrow money from the bank, creating an additional burden." they said, adding that they may have to put off buying a house at present.

Apartment prices in Hanoi have increased for 20 consecutive quarters, reaching nearly VND60 million per sqm, according to Savills Vietnam. The continuous hikes in apartment prices makes buying one in the capital city increasingly difficult for the majority of people.

Data from leading property listing website batdongsan.com.vn shows that apartment prices in Hanoi in February continued to increase rapidly due to scarce supply.

For example, in Hoai Duc district, the asking price for 2-bedroom apartments at Gemek Tower rose from VND2.2 billion at the end of 2023 to VND2.5-2.6 billion ($104,966) per unit. The Golden An Khanh project in the same district has also recorded a price surge compared to three months ago, with the price of 2-bedroom apartments rising from VND2.1-2.2 billion to VND2.4-2.6 billion per unit.

Meanwhile, 2-bedroom apartments in the Golden Palace project in Nam Tu Liem district have gone up from VND3.3-3.5 billion to VND3.7-3.9 billion ($157,448) per unit.

An increase of VND200-500 million ($20,186) per unit compared to the end of 2023 was also recorded at other projects in the district such as the Sudico My Dinh, HD Mon, Me Tri Ha and Me Tri Thuong urban areas.

In Cau Giay district, apartments with an area of about 70 sqm at the Home City project recorded a price hike from VND3.7-3.9 billion to VND4.2-4.3 billion ($173,597) per unit. The asking price of 2-bedroom apartments increased from VND2.9-3.2 billion at the end of 2023 to VND3.4-3.7 billion ($149,374) per unit at resettlement projects in Nam Trung Yen; from VND4.6-4.8 billion to VND5.2-5.5 billion ($222.043) per unit at the D'Capitale Tran Duy Hung project; and VND4.6-4.9 billion to VND5.2-5.5 billion per unit at The Park Home project.

In Thanh Xuan district, compared to the end of last year, the price of 2-bedroom apartments has risen from VND3.5-3.7 billion to VND3.9-4.2 billion ($169,560) per unit at the Goldseason project; from VND3.8-3.9 billion to VND4.2-4.4 billion per unit at the Imperia Garden project; and from VND3.5-3.7 billion to VND3.8-3.95 billion per unit at 60B Nguyen Huy Tuong. A series of apartments under the Hapulico project also climbed VND250-400 million ($16,148) each.

According to Nguyen Quoc Anh, deputy CEO of batdongsan.com.vn, current supply in Hanoi's apartment market is not enough to meet the demand, so apartment prices are continuing to rise, making it increasingly difficult for people to own a home.

"The increase will only stop when the market supply problem is resolved. At the same time, the development of suburban urban areas accompanied by convenient transportation infrastructure could help cool house prices," he said.