The Hanoi apartment market continues to welcome new projects in the coming time. Thus, since the beginning of the year, the supply of apartments in the capital has been continuously supplemented. If the story of scarce supply was the reason for the high price of apartments in previous years, then at the present time, when the supply is more abundant, the price increase of apartments shows no sign of stopping.
Abundant New Supply
Most recently, the People’s Committee of An Khanh Commune (Hanoi) has approved a partial adjustment of the detailed planning in the Nam An Khanh urban area and the expansion of area B, related to the HH3 land plot invested by Song Da – Viet Duc Investment Joint Stock Company.
According to the new planning, the HH3 land plot of more than 40,000 m² remains the same in area, but the population size is increased to 5,409 people. This land plot is oriented to be developed into a multi-functional complex, including luxury apartments, offices, hotels, commercial services and public works.
The highlight of the adjustment plan is 6 towers 31-40 stories high, surrounding a 7-story parking lot located in the center. On the roof of the base block, green space, gardens and sports areas will be arranged, creating a floating utility system combined with modern landscape.
Although not officially announced, it is expected that in the last months of the year, a new apartment project will also officially launch its supply. That is the An Binh HomeLand project located in Geleximco Urban Area – Le Trong Tan, Ha Dong, Hanoi. An Binh Homeland is developed on a land area of over 18,000m2 by Ngoi Sao An Binh Joint Stock Company, Geleximco Group as the investor. The project consists of 4 towers 25 floors high, diverse from 2-bedroom apartments to duplex apartments, with areas ranging from 68-160m2. Currently, the An Binh HomeLand project is accepting bookings.
At Vinhomes Ocean Park (Gia Lam), the investor Masterise Homes continues to launch a new product source, the Lumiere Bayfront project. The project is located next to the Pearl Lake of the urban area with a construction area of over 28,000 m², including 2 towers 30 floors high, a total floor area of nearly 100,000 m² and a basement system of over 56,000 m². The apartment structure is diverse from studios 30-40 m², 1-bedroom and 1PN+ apartments from 45-55 m², 2 bedrooms from 65-75 m², 3 bedrooms from 85-105 m² to penthouses and duplexes. Lumiere Bayfront will provide the market with about 1,000 luxury apartments.
Apartment Prices Continue to Increase
Most of the above projects are in the booking stage or have just been introduced, expected to launch in the near future. Although there is no official price yet, but with the current developments of the Hanoi apartment market, the projects will certainly not have a unit price under 80 million VND/m2. In fact, a series of Hanoi apartment projects launched recently have recorded sky-high selling prices. The Hanoi apartment market is entering a period of “unprecedented price escalation” when a series of high-end, luxury projects are rushing to launch, continuously setting new price levels. What is noteworthy is that the selling price of many apartments has exceeded that of adjacent villas, creating numbers that even surprise investors.
In the East of the city, Long Bien Central opened for sale at prices ranging from 110 – 130 million VND/m2. In other words, a 70 m2 apartment costs 8 billion VND – this is a price threshold only familiar in villas or townhouses in the city center. In the West, in Cau Giay ward, Sun Feliza set a new record when offering for sale 140 – 200 million VND/m2, meaning buyers need to spend 10 – 14 billion VND for a similar area. The Matrix Premium project also has a huge price, around 140-180 million VND/m2. Hausman Premium in Dai Mo also joined the “hundred million club” with prices of 100 – 120 million VND/m2. The peak of the price race belongs to Noble Crystal Tay Ho (Ciputra) with a primary price list of 180 – 330 million VND/m2. An 80 square meter apartment costs 25-26 billion VND, while Sky Villas cost hundreds of billions.
The continuous increase in apartment prices in Hanoi is showing many signs of instability in the market. Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that the current price level has far exceeded the affordability of most people, creating a clear imbalance between supply and demand. When real demand is difficult to absorb, the market is likely to fall into a state of “local bubble”, serving only the super-rich customer group. If this trend continues, investment cash flow is at risk of being concentrated in a narrow segment, while the mid-range and low-end segments – which account for the greatest demand – are in short supply. This not only affects the balanced development of the market but can also increase liquidity risks, making the real estate market become a game of speculation rather than real value.
