According to Cushman & Wakefield, in terms of selling prices, from 2014 to 2023, apartment prices in Hanoi have grown by 109%, averaging 9% per year. Meanwhile, in Ho Chi Minh City, apartment prices have increased by 158%, averaging 11% per year.
According to the real estate report by Cushman & Wakefield on the Hanoi market and the provinces in the key economic region in the North (such as Hai Phong, Quang Ninh, Hai Duong, Hung Yen, Vinh Phuc, Bac Ninh), the Northern housing market experienced impressive development in the years 2018 – 2019, followed by a slowdown due to global economic stagnation. Currently, both investors and buyers are eagerly awaiting the implementation of the new Land Law.
Regarding the apartment segment, as of the first quarter of 2024, there are 670 apartment projects with 370,000 units in the area. Future supply is expected to continue expanding towards the west and the outskirts of Hanoi, as well as neighboring provinces within a 30km radius from the city center, such as Bac Ninh and Hung Yen. Additionally, there is a growing number of large-scale urban centers entering the market, forming new satellite cities in the future in Quang Ninh and Hai Phong. It is estimated that by 2033, the market will have over 1,000 projects with at least 650,000 apartment units across the entire region.
In terms of selling prices, from 2014 to 2023, apartment prices in Hanoi have grown by 109%, averaging 9% per year. Meanwhile, in Ho Chi Minh City, apartment prices have increased by 158%, averaging 11% per year.
“The average primary prices have continuously risen over the past 10 years despite market fluctuations,” emphasized this entity.
For the landed property market, there are currently 550 projects with 120,000 units, and it is expected to double in the next 10 years. The market also observes the development of projects outside Hanoi, focusing on green models and sustainable lifestyles. In terms of selling prices, from 2018 to 2023, landed property prices in Hanoi have increased by 54%, averaging 9% per year, while in Ho Chi Minh City, they have risen by 73%, averaging 12% per year.
“With strong existing advantages and ongoing infrastructure development plans, the real estate market in the Northern region has many strengths and appears poised to accelerate towards a new level of development,” according to Ms. Cuc Le, Director of Research and Valuation at Cushman & Wakefield Vietnam.
Currently, the average housing prices in Hanoi are approaching those in Ho Chi Minh City. However, Ms. Trang Bui, CEO of Cushman & Wakefield, believes that future price trends will not continue to rise as steeply as in previous periods.
Ms. Trang suggests that in the short term, the market will see the participation of foreign investors in the luxury real estate sector. Limited availability of new supply has pushed up average housing prices. However, in the future, there will be many new urban and residential projects near Hanoi, leading to increased and diversified supply, thereby alleviating price pressures in the city center.
Regarding the prospects from the new Real Estate Law, the company notes that the Land Law will help resolve legal issues and accelerate the real estate market’s recovery. Additionally, it will promote land valuation at market prices and improve land utilization efficiency.
The Business Real Estate Law will enhance market transparency, limit land parceling for sale, and cleanse the market of investors with strong financial capabilities, expertise, and credibility. The Housing Law will provide more solutions to housing issues and contribute to the goal of providing 1 million social housing units by 2030. Especially, it will restore buyers’ confidence in long-term ownership of apartments.