High-end and Luxury Apartments Dominate Supply

According to a recent market report by property service firm OneHousing, 64% of the new supply in Hanoi will be in the high-end segment, with the remaining belonging to the luxury category. High-end apartments are priced between VND50-80 million (US$1,966-3,147) per square meter, while luxury apartments range from VND80-230 million ($3,147-9,047).

Half of the new apartments will be located in the eastern area of the city, particularly within major residential projects Vinhomes Ocean Park 1 and 2. The average price of the new apartments is expected to be around VND72 million (US$2,832) per square meter, marking a 75% increase from early 2022.

Developers are shifting their focus from mid-range housing to luxury and premium segments to meet profit expectations and the growing demand from the middle class. Niche projects for a small number of high-income buyers are also being developed.

In the last two years, affordable apartments have nearly disappeared from Hanoi, while the supply of mid-range units has steadily declined. Market research firm CBRE reported that in the first half of this year, luxury apartments accounted for nearly 70% of new supply, while mid-range units made up just over 30%.

Hanoi's apartment market, once dominated by various developers, is now largely controlled by a few large, well-funded domestic and international developers.