Number one rental costs in Hanoi might upward push 6-8% in 2025: document

The prices of primary apartments in Hanoi are expected to increase by 6-8% in 2025 on an expected uptick in supply, according to a report by property service provider CBRE Vietnam.

As of Q4/2024, the selling price of apartments in Hanoi reached VND72 million ($2,836) per square meter, excluding VAT and maintenance costs. This marks a 12% increase from Q3 and a 36% surge from Q4/2023, the largest annual growth in eight years.

Regarding the secondary apartment segment, selling prices were almost on par with those in Ho Chi Minh City, averaging VND48 million ($1,891) and VND49 million per sqm, respectively, excluding VAT and maintenance costs.

Compared to Q4/2023, secondary apartment prices in Hanoi rose by 26%, the largest quarterly increase recorded so far.

In 2024, Hanoi recorded 30,900 new apartments available for sale, triple the number from 2023 and the highest since 2020, according to the report.

This year, the supply of new apartments is estimated to exceed 31,000 units, with the majority being high-end and premium properties located in Hoang Mai, Long Bien, and Dan Phuong districts.

Commenting on the outlook for apartment prices in Hanoi, Nguyen Hoai An, director of Consultancy Services at CBRE Vietnam, stated that the newly issued land price framework, which outlines a two- to six-fold increase compared to the 2019 version, may prompt developers to raise property prices to offset higher land costs.

She emphasized the need to evaluate the long-term impacts of the new land prices on the market.

Assoc. Prof. Dr. Dinh Trong Thinh noted that the upward trend in apartment prices in Hanoi could stabilize in the near future without the abrupt surges seen over the past months. He predicted that homebuyers might shift their attention to areas offering more competitive prices and greater potential for growth.