Apartments gain in popularity in capital
Apartments gain in popularity in capital
Apartments in the capital city Hà Nội have gained in popularity in recent years, as a source of rental income and a reliable safe haven for people who seek shelter from inflation, said property experts and industry insiders.
Senior Director of the Consulting and Research Department at Savills Hanoi, Đỗ Thu Hằng, said apartments offer dual investment returns: rental income and value growth. As prices for other products such as shophouses and villas have seen significant gains in recent years, people have been turning to apartments as an affordable alternative.
The shift aligns with Việt Nam’s broader real estate outlook, she said. After a strong recovery in 2024, Hà Nội’s market is set to enter a new development cycle in 2025, characterised by increased quality and sustainability. Hằng said that each cycle builds on the previous one with the top priority being sustainable growth, bolstered by robust legal frameworks and a strong macroeconomic foundation.
Several key legislative advancements have laid the groundwork for the market including important laws such as the Law on Real Estate Business, the Land Law and the Housing Law, which were approved ahead of schedule in 2024. Additionally, the city’s master plan for 2021-2030, with a vision to 2050, offers more detailed guidelines for urban development, allowing people to better navigate the market.
Another pivotal change was the revised land prices, which replaced fixed price caps with market-driven mechanisms. This shift is expected to influence property values significantly and impact all market stakeholders, from landowners to developers. New land prices, published at the end of 2024, provide developers with a clearer roadmap for the city’s development in the future.
Experts said the coming phase will bring fierce competition, forcing developers to demonstrate credibility, experience and financial robustness.
Foreign players have started playing a more active role in the market after a period of observation, their partnerships, formed with Vietnamese established businesses, will likely elevate the market standards and quality. On the other hand, smaller businesses and independent investors may experience additional hurdles to join the market.
They said as the market evolves, distinct product lines will emerge, tailored to meet diverse customer needs. Developers must prioritise customer needs by offering mid-range apartments or social housing units.
In addition, Hà Nội’s 2024 Capital Law and urban planning initiatives aim to create a 'Civilised, Modern, and Culturally Rich Capital'. Businesses must align with these goals to enhance the city’s urban landscape and quality of life. These policies also focus on housing development targets and increasing the average housing area per capita.
Supply forecasts for 2025 suggest that mid-range apartments will continue to dominate Hà Nội’s market. The social housing segment was also expected to see improved supply. Most new housing projects will be developed in suburban megacities beyond Hà Nội’s ring roads, adhering to stringent standards, offering high-quality amenities and meeting sustainability criteria. As property prices in both inner-city and peripheral areas reach high thresholds, new affordable options will emerge in nearby regions.
In 2024, Hà Nội’s apartment market saw unprecedented growth with nearly 38,000 new units in 2024. The supply of newly launched apartments tripled compared to 2023, exceeding 30,900 units, the highest annual figure since 2020, according to a recent report by CBRE. introduced
Head of Residential Marketing at CBRE Việt Nam, Võ Huỳnh Tuấn Kiệt, said the capital city’s apartment supply in 2024 was six times higher than HCM City. By Q4 2024, apartment prices in Hà Nội averaged VNĐ72 million per square metre (excluding VAT and maintenance fees). Primary sale prices surged by 36 per cent year-on-year and 12 per cent compared to Q3 2024, marking the steepest increase in the past eight years.
