Expert: The thirst for apartments continues in the center of Hanoi

(Dan Tri) - Experts believe that in the coming years, the "thirst" for apartments in the inner city center will continue, because land funds are running out and many projects are stuck in legal problems that cannot be resolved immediately.

On December 23, sharing at the conference organized by the Vietnam Real Estate Brokers Association, Mr. Nguyen Van Dinh - Vice President of the Vietnam Real Estate Association (VNREA) - said that on the basis of positive economic growth, the Vietnamese real estate market has passed the most difficult period. The market is following the final stage of the recovery process with positive results in terms of supply and transaction volume.

Although the market recovery level is still differentiated by segment and region, there are still many opportunities for breakthroughs, especially on the basis of a strongly changing economy.

Mr. Nguyen Van Dinh said that in the past 10 months, the Hanoi market recorded more than 19,000 new products, 70% higher than the total supply in 2023. Of which, 88% of the supply is high-rise, coming from high-end, luxury projects of major investors.

However, the affordable apartment segment is completely "absent", mid-range apartments are starting to become scarce. Apartment projects opened for sale since the third quarter all have prices from 60 million VND/m2 or more.

In addition, the supply of apartments in the central area of Hanoi, including Hoan Kiem, Ba Dinh, Dong Da and Hai Ba Trung districts, is very scarce. Preliminary data this year shows that the central area only recorded about 400 products for sale from 3 projects, only 30% of 2023. More than 90% of Hanoi's apartment supply this year is contributed by projects in suburban districts.

An apartment project in Hanoi (Photo: Tran Khang).

According to Mr. Dinh, although the price level is already high, with the supply always maintained at a low level and special location, the price of apartments in the center will continue to increase in the long term. Rental prices continue to maintain a high price level and a stable growth rate, expected to increase from 7% to 10%/year.

Mr. Le Dinh Chung - a member of the market research working group of the Vietnam Real Estate Brokers Association - commented that in the coming years, the "thirst" for apartments in the inner city center will continue, because currently the land fund is exhausted, many projects are stuck in legal problems that cannot be resolved immediately.

He said that with rising house prices and low affordability, the trend of renting houses is increasing. In particular, the trend of renting apartments to enjoy amenities and improve the quality of life has become a popular choice for this group of people.

Commenting on the real estate market trends in the coming time, economist Nguyen Minh Phong said that one of the brightest spots of the real estate market in 2025 is the rise of industrial real estate, with a green trend. Therefore, green houses, apartments, and high-end services also follow that trend.

Source: https://dantri.com.vn/bat-dong-san/chuyen-gia-con-khat-can-ho-chung-cu-van-tiep-dien-tai-trung-tam-ha-noi-20241223202139622.htm