With new drivers, including updated regulatory frameworks, developers are ramping up projects, signaling a surge in Hanoi’s real estate market by the end of 2024.

A real estate project in Nam Tu Liem District, Hanoi. Photo: Pham Hung/The Hanoi Times

Rising prices

The real estate market in 2024 faced challenges but showed strong momentum by year-end, driven by economic stability and government support, particularly from the "big three" laws: the Housing Law 2023, the Real Estate Business Law 2023, and the Land Law 2024. Price increases are expected to continue, especially in the condominium and land plot segments.

According to OneHousing’s Market Research and Customer Insights Center, the average price of primary apartments reached approximately $2,940 per square meter in Q3 2024. This, however, is seen as the beginning of a new growth cycle, with upcoming "ultra-luxury" apartment projects set to shape the market further.

“Apartment prices in Hanoi have risen quickly, causing a temporary 'price shock,' but this is just the start of a new growth cycle that is expected to last until 2030,” said Tran Quang Trung, Business Development Director at OneHousing.

A recent survey by real estate portal batdongsan.com.vn forecasts an increase in supply, with over 10,000 new units expected, bringing the total number of new apartments launched in 2024 to nearly 30,000. Experts anticipate both primary and secondary prices will maintain their upward trend.

Land on the outskirts of Hanoi will also gain momentum in late 2024, attracting renewed interest from investors. In districts such as Dan Phuong, Hoai Duc, Me Linh, and Dong Anh, prices for some plots have risen to $4,900–$6,530 per square meter, marking a 20–30% increase from early 2024. This surge is driven by infrastructure upgrades and major real estate projects nearing completion.

“Land plots remain a prime investment focus in times of a vibrant real estate market, particularly in areas with strong economic potential and convenient infrastructure. While this segment has experienced a downturn over the past two years, it is showing signs of recovery in 2024. In the coming months, the growing interest in land auctions around Hanoi will further enhance the appeal of land plots,” noted Nguyen Quoc Anh, Deputy General Director of batdongsan.com.vn.

Specific pricing data for villa and townhouse projects in Hanoi and Ho Chi Minh City, recently released by the Ministry of Construction, also show further increases compared to the previous quarter. Most new projects launched in Q3 2024 are located in well-developed areas with strong infrastructure investment, resulting in relatively high asking prices. In districts such as  Dong Anh and Long Bien (Hanoi), secondary prices rose by approximately 5%, supported by ongoing infrastructure development and near completion of new projects.

According to the Dat Xanh Real Estate Research Institute, the industrial real estate market showed positive signals in Q3. The occupancy rate reached 83% in the northern industrial zones and 92% in the southern zones. Notably, mergers and acquisitions (M&A) activities and a shift in investment from residential to industrial real estate have surged. Several significant projects, involving the acquisition of factories and industrial infrastructure worth hundreds of millions of USD, have been initiated.

The industrial real estate market in key economic zones in northern and southern Vietnam is expected to remain a major investment attraction in the year's final quarter.

Meanwhile, retail, hospitality, and office real estate are projected to grow in both scale and quality over the long term.

Troy Griffiths, Deputy Managing Director of Savills Vietnam, attributes these positive developments to robust FDI inflows. New shopping malls, offering integrated activities, continue to draw shoppers, while the office market sees strong demand from expanding businesses.

Pham Thi Mien, Deputy Head of Market Research and Investment Promotion at the Vietnam Association of Realtors (VARS), predicts that in the broader market recovery, high-end apartments and legally approved land plots will lead to investor interest.

Additionally, villas and townhouses are becoming more vibrant, industrial real estate is growing steadily, and tourism-oriented properties are gaining opportunities for improvement as condotels (condominium hotels) are granted ownership certificates. Social housing projects are also receiving additional support for new developments.