That is the opinion of Ms. Nguyen Hoai An, Senior Director of Hanoi Branch of CBRE Vietnam. With 8 consecutive quarters of high growth in selling prices, the Hanoi apartment market has had a brilliant development cycle. After any strong growth cycle, the asking price will be adjusted and increase more slowly. Below is an interview about the Hanoi apartment market with Ms. Nguyen Hoai An.
Reporter: Madam, how did the Hanoi apartment market develop in the first quarter of 2025 in terms of supply and liquidity?
Ms. Nguyen Hoai An: Hanoi’s apartment supply in the first quarter of 2025 will come from 7 projects, providing the market with about 4,000 apartments. This is a relatively modest level compared to the average opening sale of 8,000 – 9,000 apartments per quarter in the previous three quarters, but an increase of nearly 70% over the same period last year. Notably, this is the largest supply of apartments for sale in the first quarter of the year recorded in Hanoi in the past four years, since 2022.
New supply in the quarter was mainly concentrated in development projects in suburban districts such as Gia Lam, Dong Anh, Thanh Tri and Thach That. In addition, the market also witnessed more diversity in segments, including mid-range, high-end and luxury. However, since 2022, the Hanoi apartment market has not recorded any new supply in the affordable segment.
The liquidity of the Hanoi apartment market in the first quarter of 2025 remains stable. Projects in large urban areas in the East and North of the city, with advantages in legal transparency and developed by reputable investors, recorded positive absorption rates, exceeding 70% in the first quarter of sales, although the scale of new sales of each project is relatively large.
Reporter: From observations of the apartment market, can you tell us whether apartments in the first quarter of 2025 will continue to maintain a continuous price increase like the quarters of 2024 and the previous year?
Ms. Nguyen Hoai An: After a period of rapid growth, the strong increase in apartment prices in Hanoi has slowed down somewhat in the first quarter of 2025. In the primary market, the average selling price reached approximately VND 75 million/m2 (excluding VAT, maintenance fees and incentives and discounts). Although this price was more than 30% higher than the same period in 2024, compared to the previous quarter, this price was only 3% higher. This is the lowest quarterly price increase since the second quarter of 2023. Some newly launched projects, thanks to the advantages of investor reputation, location in large-scale urban areas with full amenities, or located in existing residential areas with convenient connections to the center of Hanoi, continue to record high primary asking prices.
In the secondary market, the price increase in this quarter also continued to slow down. At the end of the first quarter of 2025, the average secondary price of apartment projects in Hanoi reached approximately VND 50 million/m2 (excluding VAT and maintenance fees). Compared to the same period in 2024, this price increased by nearly 20%, however, the quarterly increase slowed down, recorded at 3% quarterly, the lowest quarterly increase since the third quarter of 2023. Projects with prime locations, close to existing residential areas and good rental potential, especially in the areas of Nam Tu Liem, Hai Ba Trung, Long Bien and Gia Lam, recorded a slight increase of 2% to 3% quarterly. Meanwhile, the selling prices of the remaining projects did not fluctuate much compared to the previous quarter.
Reporter: The price increase is slowing down, so in your opinion, is the story of apartment buildings cutting losses in the media recently a trend or just a local phenomenon?
Ms. Nguyen Hoai An: I think the story of cutting losses that you are mentioning is the way real estate brokers use words to sell products. This is a way to approach and find customers. In reality, the story of cutting losses on apartments is not a real loss but a reduction in expectations for the selling price on the market. If the homeowner bought an apartment 2-3 years ago and offered it for sale at the present time, there is almost no story of cutting losses here. Compared to the selling price when the apartment was at its peak last year, many homeowners are rebalancing the prices offered to the market. To quickly liquidate, they reduce the price compared to the expected price, the price of the peak period. There is no story of cutting losses on apartments at this time if that apartment was bought 2-3 years ago.
Reporter: Can you give your opinion on apartment prices in the next quarters of 2025?
Ms. Nguyen Hoai An: The Hanoi apartment market has had 8 consecutive quarters of price increases. With 8 consecutive quarters of high growth, the Hanoi apartment market has had a brilliant development cycle. After any strong growth cycle, the asking price will be adjusted and increase more slowly. Up to now, the apartment price level has also been established at a high level. In the following quarters in 2025, in projects with similar locations as in 2024, there will not be a sudden price increase. In addition, the price increase or decrease also depends on the supply and demand of the market. In fact, the market supply in 2024 and 2025 is quite abundant. When the supply is stable, the price will increase more slowly. However, with the current price level, the ability to access housing for those who do not have a house is difficult. The story of social housing in the long term will help stabilize the market price.
Reporter: Thank you for this interview!
