The price level of apartments in Hanoi on the secondary market has been stable since the beginning of the year. However, some projects in the core locations of the capital are still recording a slight increase in price.
Prices Continue to Increase in the Central Core Area
In Hanoi, historic inner-city districts such as Hoan Kiem, Ba Dinh, Dong Da, and Hai Ba Trung are considered the core districts of the capital. In contrast to the flat trend of the Hanoi apartment market in general, apartment prices in these four districts are continuing to increase.
Specifically, in Ba Dinh district, the selling price of 1-bedroom apartments at Vinhomes Metropolis project (Lieu Giai) before Tet fluctuated from 8.5-9 billion VND/apartment, but now, many homeowners are offering prices of 8.8-9.3 billion VND/apartment. The average selling price has increased by 300 million VND/apartment. The increase of 300-500 million VND/apartment is also recorded for 2-bedroom and 3-bedroom apartments. Before Tet, many 2-bedroom apartments were offered at 13-15 billion VND/apartment, but the current price is 13.5-15.5 billion VND/apartment. The price of 3-bedroom apartments has also increased from 19.5-23.5 billion to 20-24 billion VND/apartment.
Similarly, at the Diamond Park Plaza project (Lang Ha), the selling price of apartments also recorded an upward trend. Specifically, the selling price of 1-bedroom apartments in this project increased from 7.3-8 billion VND/apartment to 7.8-8.5 billion VND/apartment. The price of 2-bedroom apartments also increased from 11.5-13 billion VND/apartment to 12-13.5 billion VND/apartment. An average increase of 3-5% was also recorded for 3-bedroom apartments of this project.
During the same period, at the Lancaster project (Nui Truc), the price of a 1-bedroom apartment also increased from 4.5-5 billion VND/apartment to 5-5.5 billion VND/apartment. Apartments with an area of more than 100m2 also increased from an average price of 15-16 billion VND/apartment to 15.5-16.5 billion VND/apartment.
Located in Dong Da district, Ha Thanh Plaza project, compared to before Tet, the selling price of 2-bedroom apartments with an area of about 70m2 also increased from 5.5-5.6 billion VND/apartment to 5.7-5.9 billion VND/apartment. The 3-bedroom apartment line also increased by an average of about 500 million VND/apartment with a common selling price of about 9 billion VND/apartment at the present time. Similar increases were also recorded at Hateco Laroma project (Lang Thuong), M5 Nguyen Chi Thanh apartment building…
Apartment Prices in the Central Core Area Will Continue to Increase
Explaining why while the apartment transfer market recorded a flat price level, apartments in historic inner-city districts still increased in price, Ms. Nguyen Ngoc Bao Tram, an apartment broker in these districts, said that with a long history of formation, the land fund in historic inner-city districts – the central core has been exhausted, it is almost impossible for new projects to appear, and supply is very scarce. Meanwhile, demand in the central core area is always large and present. This fact is the reason why apartment prices in the core area still increase, while other areas record a flat or even a slight decrease.
Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that in 2024 alone, the core area including Hoan Kiem, Ba Dinh, Dong Da and Hai Ba Trung districts will have only about 400 products launched on the market, accounting for 1% of the total supply of apartments in Hanoi. The remaining 99% of the capital’s supply is concentrated in suburban districts. The scarcity causes apartments in the core area to continue to increase in price, while the increase has slowed down in suburban districts.
In addition, according to Mr. Dinh, compared to the beginning of 2019, the average apartment selling price in the 4 central districts of Hanoi has doubled and is 30% higher than the average increase of the whole of Hanoi. In particular, Hai Ba Trung and Dong Da are the two districts leading in price increase rate in the past 5 years. The increase of apartments in the core area is likely to continue in the coming time due to the “huge” demand from the economic development and urbanization of the central area.
