Hanoi condominium market soars to record highs, 2026 adjustment phase expected: CBRE

THE HANOI TIMES — Nguyen Hoai An, Senior Director and Head of CBRE’s Hanoi Branch, has told the online business and economic news site CafeF that Hanoi’s condominium market has record prices in 2025 as demand stays strong and high-end projects increase. He expects the market to become more competitive and flexible in 2026.

How would you assess Hanoi’s apartment market in the third quarter?

Housing prices have been the main topic of discussion for the past few months. In the third quarter, many projects were launched at around VND120 million (US$4,550) per square meter, accounting for 20% of the more than 10,300 new units released. Meanwhile, apartments priced below VND60 million ($2,270) per square meter have almost disappeared.

The rise in luxury projects pushed primary prices up 16% quarter-on-quarter and 41% year-on-year. Traditionally, Hanoi’s average primary price was lower than Ho Chi Minh City’s. However, by Q3 2025, it reached VND91 million ($3,450) per square meter, surpassing HCMC’s figure.

In the secondary market, resale prices rose 19% year-on-year to about VND58 million ($2,200) per square meter. Although the pace has slowed compared to 2024, it still exceeded that of the first two quarters of 2025.

CBRE recorded strong activity, with many new projects attracting significant buyer interest. Sales and reservation rates remained solid in 2025, especially for projects priced around VND100 million ($3,800) per square meter.

Liquidity in Hanoi’s apartment market stayed high. In the third quarter alone, new supply exceeded 10,000 units while more than 11,000 units were sold. There were no signs of instability in market liquidity.

Why does liquidity remain high despite soaring prices? Is investor demand driving the market due to favorable financing and developer incentives?

Although prices are high, several factors have kept demand strong.

First, buyers of off-plan projects, which take two to three years to complete, tend to purchase for investment rather than immediate occupation. Those needing homes right away prefer ready-to-move-in units. Buyers of future developments essentially act as investors alongside developers.

Second, low interest rates support favorable financing and help maintain liquidity.

Third, compared to other assets, property remains attractive. While domestic gold prices surged 65% over the past year, affecting investor sentiment, real estate offers stability and long-term value, reinforcing buyer confidence.

Most new projects include sales incentives such as mortgage support or interest-free periods until handover. These programs continue to help transaction volumes and market absorption.

Overall, buying sentiment remains positive, especially in Hanoi and the northern condominium segment. Many buyers view apartments as reliable assets providing both rental income and stable long-term value.

What are the biggest challenges the market is facing right now?

Apartment prices in both the primary and secondary markets have risen sharply. The primary market now averages over VND90 million ($3,410) per square meter, while secondary prices continue to see double-digit growth. This creates higher barriers for homebuyers. Although liquidity remains strong, it is unclear how much of this demand comes from end-users.

If supply continues to improve, prices could stabilize. However, progress in transport infrastructure is essential. Many major projects are under construction, but full connectivity will only be achieved when key urban railway lines are completed.

On financing, interest rates remain low, making loans more accessible for working professionals. Developers also provide flexible payment plans and supportive loan packages.

As housing prices continue to rise, the government is drafting a resolution to control the market. How effective have these efforts been so far?

When prices rise sharply, the government has taken steps to stabilize the market. The latest proposals focus on credit control, affordable housing and the creation of a national land trading center.

The land trading center is a positive move that could improve transparency in transactions. Credit control measures could include loan caps based on property ownership, such as 30% for a second home and 50% for a third. This gradual approach has proven effective in other countries.

However, policymakers must distinguish between speculation and legitimate investment. For affordable housing, it would be better to strengthen existing social housing programs rather than start new ones. Vietnam can learn from Singapore’s successful HDB model.

What is your outlook for the housing market in 2026?

In 2025, Hanoi is expected to supply around 32,000 new condominium units. In the following years, annual supply will likely stay above 30,000 units.

With this volume, buyers will have more choices and competition among developers will intensify. Developers will need flexible pricing strategies to maintain sales.

If prices remain high, absorption could slow, but greater competition will likely lead to better pricing and promotional programs. Overall, the market is expected to stay active and increasingly competitive in 2026.

Thank you for your time!