In 2021, Hanoi’s GRDP increased 2.92%, lower than 4.18% in 2020, due to severe impact of Covid-19. The total FDI reached US$1.5 billion, increased 10.6% y-o-y. The city also completed many major infrastructure projects such as Cat Linh – Ha Dong Metro Line (Line 2A), intersection b/w Hanoi Ring Road No.3 with Hanoi – Hai Phong Expressway.
In recent years there have been more and more High-end supply entered HCMC market, with projects even with selling prices over US$15,000 per sqm, meanwhile Hanoi’s High-end apartment supply became more limited, leading to the differences in grading systems in the two cities. Therefore, C&W publishes the Q4 2021 report of Hanoi apartment with the below segments:
- Grade A: Project has prime location, with selling price above US$2,200 per sqm
- Grade B: Project has convenient location, with selling price ranging from US$1,300 – 2,200 per sqm
- Grade C: Project has selling price below US$1,300 per sqm
Hanoi Apartment Market Statistics Q4 2021
*All prices are exclusive of VAT
US$/VND = 23,163; US$/€ = 0.884 as at 16 December 2021
Source: Cushman & Wakefield
Market Supply: Amid the “new normal” situation, launching activities was resumed with total new stock of nearly 3,600 from 5 new projects coupled with the next launches of 20 existing projects, down 20% y-o-y but still improved by 2% q-o-q. Grade B continued to dominate with 60% of total new supply in Q4 2021, mainly from additional launches of existing projects together with 1 newly-launched project i.e. Trinity Tower. Grade C came next, accounting for 35% of total new stock with newly-launched projects like Hausman, T&T DC Complex and Lavender Garden. Meanwhile, Grade A contributed the remaining 5% with 1 newly-launched project, namely The Grand Hanoi.
Significant Projects Launched in Hanoi Q4 2021
Source: Cushman & Wakefield
Market Absorption: Total apartment units sold were recorded at nearly 3,100 units. Demand was healthy from both investors and owner-occupiers. Grade B remained the most attractive segment with 3/5 of total transactions, mainly contributed to good absorption at new projects as well as Vinhomes, Masterise Homes and MIKGroup’s projects. Grade C contributed over 1/3 of total transaction with quick absorption at new projects. With limited new stock, Grade A only accounted for 7% of total take-up. Among which, the only newly-launched project namely The Grand Hanoi was sold out from the first launch of the project.
Primary Supply and Absorption in Hanoi
Source: Cushman & Wakefield
Price Performance: The market saw average prices significant rise by 20% q-o-q and 39% y-o-y. Grade A achieved over US$5,927 per sqm, double that of the last quarter and the same period last year thanks to remarkably high price of the new project in this quarter. Grade B reached US$1,706 per sqm, up 4% q-o-q. Meanwhile, Grade C recorded an increase of 11% q-o-q at US$1,112 per sqm. On yearly basis, both Grade B and C recorded high increase of 14% and 16% due to the entrant of high-priced projects as well as price escalation of projects with good absorption.
Hanoi Apartment Average Primary Price
Source: Cushman & Wakefield
Market Outlook 2022: With the “new normal” conditions after Covid-19 in Hanoi, the market prospective in 2022 is expected to be dynamic with about 26,000 units launched into the market. The launching of The Grand Hanoi at the end of 2021 has set a new bar for Hanoi’s apartment for sale market. Several reputable southern developers have entered Hanoi’s residential market, such as Masterise Homes, Phu Long, Hung Thinh. This expansion is expected to bring more high-quality products as well as raise average price in the market.