Apartment market remains hot

In mid-July, Thu Ha and her husband, living in a rented room in Hanoi, looked into a 2-bedroom, 55-sqm apartment at a major urban complex in West Hanoi, priced at VND4.1 billion per unit. By mid-August, the asking price for a similar apartment had jumped to VND4.4 billion.

“My husband and I worked tirelessly all year, cutting expenses to save VND250 million, but in less than a month, the apartment we wanted rose by VND300 million. It’s truly overwhelming,” Ha said.

Hanoi’s apartment market shows no signs of cooling, with prices fluctuating, pausing, and then climbing again.

At Hanoi Centerpoint on Le Van Luong Street in Yen Hoa Ward, 2-bedroom, 2-bathroom apartments were listed at VND6.7-6.8 billion in mid-July. Now, the average asking price is VND6.8-7 billion per unit.

At the Home City project in Yen Hoa Ward, 60-sqm apartments are listed at VND5.85-6 billion, up from VND5.7 billion in mid-July.

At the Green Star project on Pham Van Dong Street, 3-bedroom, 2-bathroom apartments were priced at around VND8 billion last month but are now listed at VND8.2-8.3 billion. Similarly, at An Binh Plaza, both asking and transaction prices have risen over the past month.

For example, 2-bedroom, 1-bathroom apartments with a 50-year tenure were listed at VND3.3-3.5 billion in February 2025 but now range from VND3.6-3.8 billion. For similar 55-sqm apartments with permanent ownership, prices have risen from VND4.3-4.4 billion earlier this year to VND4.6-4.7 billion, with some owners asking up to VND5 billion.

At the Me Tri Ha project, opposite Keangnam building, 2-bedroom, 2-bathroom apartments have increased from VND4.6-4.8 billion to VND4.8-5 billion.

On Pham Van Dong Street, The Nine project, priced at around VND45 million per sqm in 2022, has soared to about VND100 million per sqm after three years.

Reasons for the price surge

Vu Cuong Quyet, CEO of Dat Xanh Mien Bac, expressed astonishment at the Hanoi apartment market’s unusual behavior over the past eight months. Despite high prices, liquidity remains strong, with some projects selling out within months.

It is estimated that 7,000-8,000 apartments have been launched in Hanoi so far this year, far short of actual demand. Even with high prices, real homebuyers are still rushing in, fearing prices will continue to rise. Loan interest rates stabilizing around 6–6.5 percent per year have also made it easier for buyers to access financing.

Quyet explained that as new project prices spike, many buyers are priced out and turn to older, lived-in apartments. In this context, current owners see rising prices and naturally don’t want to sell below market value.

“Rising demand for actual housing and limited supply have driven up apartment prices. Additionally, increasing input costs for new projects, such as construction materials and labor, have pushed up overall apartment prices, creating a ripple effect on the second-hand segment. The mindset of raising prices when the market heats up also fuels the second-hand market’s surge,” Quyet said.

The Vietnam Institute for Real Estate Market Research (VARS IRE) stated that in the cycle of “holding inventory - scarce supply - price increases,” people with legitimate housing needs suffer the most.

The income of most households cannot keep up with the pace of property price increases. A 2-bedroom apartment priced at VND4-5 billion in major cities is nearly out of reach for young couples. This not only makes homeownership increasingly unattainable but also places significant pressure on urban planning and transportation.

“Market manipulation is inflating prices artificially, funneling profits to a small group while shifting risks onto small investors and real buyers. Without proper regulation and policy direction, real estate may fall into another boom-and-bust cycle, damaging the entire economy. And the ones hit hardest will be everyday people still waiting desperately for a home,” VARS IRE warned.

Hong Khanh