Hanoi's Apartment Market Surges

Last year, Hanoi experienced a significant surge in apartment prices, with an average increase of 35% to VND72 million (US$2,821.31) per square meter, reaching a new peak. This growth was reported by market research firm Knight Frank. The capital saw an influx of 27,300 new apartments available for sale, tripling the number from 2023, with an impressive 98% purchase rate.

HCMC's Modest Growth

In contrast, Ho Chi Minh City (HCMC) had a more modest number of new apartments available, with only 4,900 units on the market. Of these, 63% were sold. Despite this, the average price in HCMC rose by 12% to VND90 million, which is 25% higher than Hanoi's average.

Narrowing Price Gap

The gap between apartment prices in Hanoi and HCMC has been narrowing in recent years, as demand in the capital has been increasing rapidly. Cao Thi Thanh Huong, a senior research manager at Savills, noted that traditionally, Hanoi's apartment prices have been lower than those in HCMC. The shortage of supply in Hanoi has been a key factor in pushing up average prices.

Future Projections

Looking ahead, Son Hoang, deputy director of consulting and valuation at Knight Frank Vietnam, forecasts that HCMC will see 8,600 new apartments for sale this year and 15,400 next year. Meanwhile, Hanoi is expected to have a stronger supply with 20,000 units annually. Prices are anticipated to rise by 6-8% in HCMC and 5% in Hanoi this year.