While primary apartment prices in Hanoi continue to rise, the secondary market has begun showing signs of a downward trend, with resale prices now 20-50% lower than new listings, according to Savills Vietnam.

In Q1 2025, data from Savills shows the average primary market price reached approximately 79 million VND/m² (around 3,130 USD/m²), marking a 5% increase compared to the previous quarter.

Despite this upward pricing trend, the number of transactions has significantly declined. Only 7,900 units were sold in the first three months of the year - a 41% drop quarter-on-quarter.

One of the key issues remains the imbalance in market supply. Affordable housing continues to be scarce. Half of the primary market transactions were for apartments priced between 2 and 4 billion VND (approximately 80,000 to 160,000 USD), with the rest exceeding 4 billion VND. “There were no newly launched apartments priced under 2 billion VND in Q1,” Savills reported.

On the secondary market, average resale prices hovered around 60 million VND/m² (roughly 2,360 USD/m²), showing a slight decline of about 1% from the previous quarter.

Experts noted that Hanoi’s secondary apartment market is undergoing gradual price corrections, which are expected to continue in a more reasonable direction.

The Q1 report by the Vietnam Association of Realtors (VARS) also highlighted the ongoing imbalance in the housing supply structure.

Around 14,500 new listings were recorded across the country - half the volume compared to the end of last year. Of this, 58% came from high-end and luxury segments, up 11% year-on-year. Most of the supply was concentrated in mega-urban projects on the outskirts of Hanoi, Ho Chi Minh City, and nearby provinces.

While the proportion of affordable housing (including social housing) has improved slightly, reaching nearly 13% or roughly 2,000 units, it remains far below actual demand.

Savills attributes the rising prices in Hanoi's apartment market largely to newly launched high-priced projects. Meanwhile, prices of some resale apartments have leveled off following a period of sharp increases.

The current price gap between the primary and secondary markets is substantial. Resale prices are approximately 50% lower than those of newly launched grade A units, and over 20% lower for grade B apartments.

Surveys in Hanoi reveal that since late last year, prices in suburban districts have surged. Many projects located 15-20 kilometers from the city center - accessible only by bridge - are now being marketed at 70 to 90 million VND/m² (2,770 to 3,560 USD/m²). In Dong Anh District, some projects are being offered for over 100 million VND/m² (approximately 3,960 USD/m²).

Caution advised for high-risk mortgage loans

A recent VietNamNet survey shows that 80% of respondents said they would wait before buying property, with most citing expectations of price drops. Only 16% said they would buy now, with the remainder undecided.

Cao Thi Thanh Huong, Senior Manager of Consulting and Research at Savills Ho Chi Minh City, noted that the government has asked banks to develop specialized credit policies for first-time homebuyers, especially young people.

According to Huong, ideal loan terms should span 20 to 30 years - equivalent to a borrower's full working life - to reduce monthly payment burdens.

She also cautioned young buyers against taking out loans beyond their repayment capabilities, especially in light of stalled projects and broken promises on interest rate support.

“A monthly payment equating to about one-third of income is far more sustainable than payments that consume half or more - thresholds that many young couples are struggling with,” Huong stated. “In today’s context, a safe borrowing limit should be capped at 50% of the property’s value to mitigate long-term financial risks and psychological stress.”

She added that assessing repayment capacity, selecting legally sound projects, and working with reputable developers are essential steps that buyers must not overlook.

Hong Khanh