That is the opinion of Mr. Le Bao Long, Director of Strategy and Marketing of Batdongsan.com.vn about the developments of the Hanoi real estate market in recent times. Data of Batdongsan.com.vn shows that the level of interest of searchers in the Hanoi market increased after Tet.
The Real Estate Market Has Passed Its Most Difficult Period
Talking to Batdongsan.com.vn about the recent developments of the real estate market, Mr. Le Bao Long said that Vietnam’s real estate has gone through the most difficult cycle. Previously, the market peaked in 2021 before falling sharply in 2022. And it was not until 2024 that signs of recovery became clear. In 2024, the market had a fever for apartments in Hanoi, then the recovery wave spread to the South as well as some other areas.
Batdongsan.com.vn conducted a 2013 cycle analysis on credit factors, interest rates and policies to see the impact of these factors on the market recovery. The Director of Strategy and Marketing of Batdongsan.com.vn emphasized that, compared to the previous cycle, 2013 was the first year that credit growth returned, policies such as the Land Law were passed and interest rates were almost ceilinged. Thanks to that, the market cycle began to recover from there.
Hanoi Real Estate Continues to Be a Bright Spot in the Market
Mr. Long said that data from Batdongsan.com.vn showed that the level of interest of searchers in the Hanoi market increased after Tet. This shows that real estate is still a popular investment channel for consumers. In the context of loose monetary policy and high growth expectations of the economy, real estate will still be in the sights of investors.
The Director of Strategy and Marketing of Batdongsan.com.vn shared that the selling price index on Batdongsan.vn shows that, in more than a year, the average selling price of Hanoi compared to other areas has increased by 46%, and the rental price has increased by about 12%. Currently, the general price in Hanoi is higher than that of Ho Chi Minh City. Low-rise private houses have been higher than Ho Chi Minh City for a long time.
Explaining the reason why real estate prices continue to increase, Mr. Long said that Hanoi is still a market with very good fundamentals. For example, according to data from the General Statistics Office, Hanoi’s population density in 2023 is 8 times higher than that of the whole country and this density has continuously increased over the past 5 years, while the land fund is limited, so it is inevitable that the price level will increase when demand is high and supply is limited.
Explaining the reason why real estate prices continue to increase, Mr. Long said that Hanoi is still a market with very good fundamentals. For example, according to data from the General Statistics Office, Hanoi’s population density in 2023 is 8 times higher than that of the whole country and this density has continuously increased over the past 5 years, while the land fund is limited, so it is inevitable that the price level will increase when demand is high and supply is limited.
Mr. Long emphasized that real estate prices are unlikely to decrease. In addition to the population factor, with the latest changes to the Land Law, including changes to the land price framework, when the 5-year update is replaced by an annual land price table, the input land price will gradually be adjusted upwards. The land price table will be adjusted closer to the market price framework. When the land price table is adjusted annually and closer to the market price, it will lead to the next story: primary real estate prices increase and secondary prices in the surrounding areas also increase. This story is clearly shown in Hanoi, at the end of last year, Hanoi issued a land price table to apply, by 2025, the average land price in Hanoi has increased from 2-6 times compared to the old land price table. “This is something we have to accept, when the land price list is updated annually, land prices only go sideways and increase, it is difficult to decrease. There is no reason to believe that prices can decrease, especially in the central area. There are many reasons for prices to increase, and too few reasons for them to decrease,” emphasized the Director of Strategy and Marketing of Batdongsan.com.vn.
