Apartment market
The supply of apartments in the inner-city districts is getting limited as the project approval process is increasingly difficult. As a result, the supply of new apartments in Q3 reached just over 3,000 units, down 38% QoQ and 15% YoY, with supply mainly from Nam Tu Liem, Hoang Mai, and Gia Lam districts. Mid-end apartments account for 84% of the total supply this quarter, other segments are affordable 12%, and high-end 3%. There is no supply for the luxury and super luxury segments. Some projects include Hanoi Melody Residence, Khai Son City, Grand Sunlake, and MHD Trung Van.
Credit control also made it difficult to disburse loans to customers, leading to sales and absorption rates decreasing in the quarter, with 4,600 units sold, down 15% QoQ. To adapt to the current situation, developers have offered easier payment terms with large discounts or attractive promotions to customers to increase market demand.
The average primary selling price reached about US$1.858 per square meter, down 3.1% from the previous quarter. According to Cushman & Wakefield's estimation, there will be about 103,000 new apartments for sale from Q4 2022 to 2025.
Classification of apartments in Hanoi:
- Super Luxury: > US$10.000/sqm
- Luxury: US$4.500 – US$10.000/ sqm
- High-end: US$3.000 – US$4.500/ sqm
- Mid-end: US$1.500 – US$3.000/ sqm
- Affordable: < US$1.300/ sqm
Townhouse market
New supply of townhouses in Hanoi dropped significantly in Q3, only 625 units were launched, halving in comparison to Q2 but still up 4.6% YoY. The total number of units sold is about 374 units. Leading Hanoi's new supply are Me Linh with 50% and Gia Lam with 26% with notable projects such as HUD Me Linh Central and Highway5 Residence.
The average primary price was recorded at US$6,800 per square meter of land, down 0.2% QoQ and up 43.3% YoY. Investors are gradually becoming more cautious in investing and buying real estate due to a lack of liquidity and loans.
Cushman & Wakefield estimates the total supply of townhouses in the future in Hanoi will reach 12,000 units. Notable projects in the implementation process from Q4 2022 include Sunshine Heritage Resort, Hana Garden Homes, and Will State.
