Hanoi's Primary and Secondary Apartment Markets Show Slowing Growth

According to CBRE, the primary market in Hanoi saw apartment prices average VND75 million (US$2,915) per square meter in the first quarter, marking a 3% increase from the last quarter of 2024. This growth rate is the slowest since the second quarter of 2023.

The secondary market mirrored this trend, with prices also growing by 3% to VND50 million. Notably, price stagnation was observed across most projects, except for those in prime locations with high leasing potential.

Declining Demand and Sales in Hanoi's Apartment Sector

Cushman & Wakefield reported a significant drop in demand, with only 4,300 units sold, a 53% decrease from the previous quarter. The majority of new units were in the high-end and luxury segments, leaving few affordable options for buyers.

Property platforms like Batdongsan have noted flat prices since the end of last year, with some sellers reducing listing prices by 2-5%.

Expert Insights on Market Slowdown

Nguyen Hoai An of CBRE Hanoi attributes the slowdown to homeowners adjusting expectations after two years of steep price hikes. While sellers are not facing losses, speculators in certain areas may see reduced profits or losses.

Pham Duc Toan of EZ Property highlights the challenges faced by speculators in western, eastern, and southern Hanoi, where rapid price increases had encouraged quick purchases. With new supply expected to reach 31,700 units this year, the market is unlikely to see last year's sales levels.