Hanoi (VNS/VNA) - The primary selling prices of condominiums in Hanoi experienced a sharp 36% year-on-year and 12% quarter-on-quarter increase in 2024, according to CBRE Vietnam, a foreign real estate service company.
This was the highest increase recorded in the past eight years in Hanoi's condominium market.
At the end of the fourth quarter 2024, the average primary selling prices of condominiums in Hanoi was 72 million VND (2,836 USD) per sq.m net saleable area (NSA), excluding VAT, maintenance fees and discounts.
In HCM City, condominium primary prices averaged 76 million VND per sq.m NSA in Q4 2024, up by nearly 24% year-on-year.
This significant increase was driven by the fact that over 70% of the new supply came from high-end and luxury projects launched this year.
Meanwhile, existing projects saw primary prices increase by 10% to 40%, compared to earlier launches.
Despite setting a high asking price, developers also offered various attractive sales policies such as extended payments of up to five years, or discounts from 5% to 16% for standard payments.
As a result, new projects launched in Q4 2024 witnessed a positive absorption rate of around 70% out of the total supply.
Among these were several high-end to luxury projects with convenient access to the centre of Hanoi, which sold out by official launch date.
These projects managed to attract the attention of investors with available funds who opted for a standard payment schedule to enjoy high discounts.
In the secondary market, the selling prices of condominiums in Hanoi are now almost in line with prices in HCMC, reaching an average of 48 million VND and 49 million VND per sq.m NSA respectively (excluding VAT and fees).
In Hanoi, the increase in secondary selling prices maintained a more stable growth compared to the beginning of the year, up by 5% quarter-on-quarter. Compared to the same period last year, the price level increased by more than 26%, the highest year-on-year growth recorded so far.
On the other hand, the secondary selling price of condominiums in HCMC continued to increase slightly in Q4 2024, up by 1% quarter on quarter and 7% year on year. Increases in secondary selling prices were recorded in all condominium segments in this quarter.
Regarding the residential market in Hanoi and HCM City this year, Executive Director of CBRE Vietnam Dung Duong said: The year 2025 will mark the beginning of a new cycle in the residential market, with abundant supply and improved product quality driven by increasing competition among developers.
The market is expected to become more stable and sustainable as it has time to adapt to the revised laws, as well as new circulars and implementation guidelines.
This will create a clear legal environment, encouraging developers to actively participate in project development while also opening up opportunities for more people to access and purchase housing more easily.
In addition to differences in prices, CBRE Vietnam said that the year 2024 also showed a divergence in terms of supply between HCM City and Hanoi residential markets.
While HCM City continued to face limited new supply, with only 5,300 new units in 2024, including both condominiums and landed property, new residential supply in Hanoi increased significantly with nearly 38,000 new units launched last year.
Of which, new condominium supply in Hanoi in 2024 was three times that of 2023, marking the highest annual new launch numbers recorded since 2020.
The majority of the new supply in the fourth quarter 2024 came from high-end projects with completed legal status and developed in mega townships in Nam Tu Liem and Gia Lam districts, where residents had already moved in. This has resulted in an increase in primary selling prices, as well as sales rates exceeding 70% among launched projects.
Meanwhile, new condominium supply in HCM City reached the lowest level ever recorded since 2013, with only 5,050 new units launched in 2024.
However, during the final quarter of 2024, supply in HCM City was already up by 26-fold compared to the previous quarter./.
