Hanoi’s real estate market to pick up steam in Q2/2025

THE HANOI TIMES — Hanoi’s real estate market may regain momentum in the second quarter of 2025, as the total primary apartment supply projected to exceed 8,000 units, according to property data firm One Mount Group.

This figure is double that of the first quarter and close to the record high in Q3/2024, according to the company's May report.

The rebound is marked not only by an increase in quantity, but also by significant improvements in quality and product diversity.

All segments, from social housing to mid-range, high-end, and luxury apartments, have seen growth, offering homebuyers more choices, One Mount Group added.

"The supply this quarter is evenly distributed across all four directions, indicating that developers have adjusted their distribution strategies to better meet the increasingly diverse demands of the market," the company said.

The data firm pointed out that outlying areas such as Long Bien and Gia Lam have emerged as hotspots thanks to rapid infrastructure development, including ring roads, river crossings, and metro lines.

In its May report, One Mount Group also found that apartments remain the most sought-after property category in Hanoi, accounting for 50% of buyer interest.

Of those surveyed, 88% said they planned to buy within the next two years, reflecting strong short-term purchasing power.

Buyers aged 18 to 34 now represent 27% of total housing demand over the next two years. This generation is tech-savvy, dynamic, and tends to prioritize modern, convenient, and flexible living spaces.

They are also more willing to pay a premium if favorable financial policies are available.

“This shows higher expectations for living standards and residential experiences,” One Mount Group said.

Tran Minh Tien, Director of the Market Research and Customer Insight Center at One Mount Group, said that abundant supply, sustained demand, and gradually recovering buyer confidence now support Hanoi’s property market.

He added that with macroeconomic conditions remaining stable, market liquidity and absorption are expected to improve noticeably in the next quarter.

According to the data analyst, Hanoi’s property market recovery in Q2 is expected to have a ripple effect across northern Vietnam.

Developers are expanding their offerings to include affordable and mid-range options, not just luxury housing, while infrastructure remains a critical driver of new development zones.

Once projects like the Ring Road 4, the Tran Hung Dao Bridge, and various metro lines are completed, travel time between the city center and outlying areas will be significantly reduced, enhancing the value and investment potential of these locations.

However, rapid price increases in some high-end projects are widening the gap between market segments. Without supportive credit policies, potential homeowners may have difficulty accessing affordable housing.

This could lead to an oversupply of luxury homes and a shortage of affordable housing, which is in the highest demand.

Matthew Powell, Director of Savills Hanoi, said streamlining administrative procedures such as construction permitting and ownership certification will be crucial to speeding up project implementation in the coming months.

He said the total primary apartment supply in 2025 may exceed 25,000 units, with an additional 70,000 units expected in 2026 from 91 projects that are currently planned or approved.

Matthew Powell added that Dong Anh, Hoai Duc, and Hoang Mai districts will account for about 52% of this new supply thanks to advantages in land availability, infrastructure connectivity, and supportive local policies.

According to Savills Vietnam, the average primary selling price in Hanoi reached VND79 million (US$3,030) per square meter by the end of Q1/2025, up about VND4 million ($153.4) from Q4/2024.

In some high-end developments in Long Bien, Hoang Mai, and Nam Tu Liem districts, prices range from VND100 to VND150 million ($3,830 – $5,750) per square meter. This reflects developers' efforts to improve their products in a more competitive market.