Hanoi Apartment Market Continues to Have Abundant Primary Supply

Hanoi’s primary apartment supply has continued to be abundant in the past two months. The market continues to be dominated by high-end and luxury supply.

New Supply Floods From Many Projects

The Hanoi apartment market continues to be vibrant with a series of new projects launched recently. Recently, Sun Property – a real estate brand of Sun Group Corporation officially introduced the Sun Feliza Suites project. The project has a scale of 2.55 hectares, of which nearly 17,500 m² is for landscape and traffic infrastructure, with a construction density of only 31.49%. Sun Feliza Suites consists of 5 towers, providing nearly 1,700 apartments of various types, from studios to 4-bedroom apartments, with areas ranging from 29-120 m2 with prices ranging from 140-200 million VND/m2.

At the same time, The Queen project developed by Thang Long Investment and Trade Group was also announced at 360 Giai Phong (Phuong Liet Ward, Hanoi). The project is deployed on an area of ​​nearly 5,000m2, including 35 floors above ground and 5 basements, providing the market with 935 apartments with areas ranging from 71.9–103.3 m2. The project is currently in the booking stage.

In the North of Hanoi, Jade Square – a project of JS Real Estate Joint Stock Company and developed by Infinity Group is also opening for reservation registration. The project is located in the Bac Co Nhue – Chem urban area (Xuan Dinh Ward) with a total area of ​​6.6 hectares, construction density of about 35%. In particular, the high-rise subdivision is nearly 12,000m2 wide with 26 floors above ground, 3 basements, providing 747 apartments from 2 to 4 bedrooms, area ranging from 71.7-155 m2.

In the eastern area of ​​the city, Long Bien Central invested by TASECO Land has a scale of more than 1.6 hectares, including 2 towers 12-14 floors high. The project offers a variety of options from 1 to 4 bedroom apartments, area 50-165 m2. The expected price is about 110-130 million VND/m2 (excluding VAT).

Liquid Primary Projects

According to a survey by Batdongsan.com.vn, primary projects, despite being launched at high prices, still recorded good liquidity and high booking rates. For example, Sun Feliza Suites has sold out all of its products in one building and is currently selling the second building. Long Bien Central has also sold half of its products. Booking rates at The Queen and Jade Square are also quite high. According to brokers, despite high prices, the attractive sales policies and the projects all have beautiful locations and are products of reputable, well-known investors, so they have recorded good liquidity and bookings.

From an investment perspective, investor Pham Hung, residing at Sudico apartment building (Hanoi), said that the reason why many investors are willing to spend money on apartment projects despite high prices is because loan interest rates remain low and stable. After many adjustments, the interest rate level for home loans has now “cooled down” and tends to stabilize. This is considered an important factor that helps investors confidently use financial leverage to buy apartments. In particular, many metro lines, belt roads, and expressways that are about to be completed are near apartment projects for sale, helping projects located near major infrastructure become destinations for investment cash flow. In addition, in the investment trend, apartments are gradually replacing real estate in the choice of residence – investment because they are suitable for the needs of rapid urbanization. And especially the impressive price increase in recent times is the reason why many investors have shifted to this segment.

Sharing the same opinion with investor Pham Hung, investor Nguyen Thi Thao, residing at An Binh Plaza (Hanoi) gave additional notes to investors when putting money down on apartments at this time. According to Ms. Thao, apartment prices in large cities have been continuously climbing over the past many years, creating an unprecedented “price storm” in the real estate market.

In that context, putting money down to buy an apartment, whether for living or investment, is no longer simply based on emotions or expectations of price increases, but requires alertness, strategy and the ability to manage capital flows tightly from investors. Instead of following the crowd, investors should focus on analyzing the basic factors: location, infrastructure, legality, quality and actual demand for the project. In the “price storm”, only really good products are able to maintain prices and generate sustainable profits. Ms. Thao also emphasized that the current market is no longer favorable for short-term “surfing”. Therefore, actual exploitation factors such as long-term rental, real housing demand or potential population growth – new infrastructure are the measures of apartment value.