Hanoi sees growing interest in apartments

THE HANOI TIMES — Apartments in Hanoi were the only real estate segment to see a rise in buyer interest in May, increasing by 9% compared to April, according to data from the property website Batdongsan.com.vn.

By contrast, interest in other segments, such as land lots, private houses, street-front houses and villas, declined by 15%, 8%, 8% and 4%, respectively.

"This strong surge of interest in apartment units, particularly in Hanoi and the northern provinces, could be an early sign that investors and homebuyers are returning to safer segments,' said Nguyen Quoc Anh, Batdongsan.com.vn's Deputy General Director.

"When the market heats up, people rush into land, as seen in March. But when they feel uncertain, they shift back to assets with stable cash flow and higher liquidity, such as apartments.”

During the first five months of the year, the number of newly registered and reactivated real estate businesses rose significantly. Specifically, 2,064 firms were newly established, marking a 13% year-on-year increase, while 2,123 businesses resumed operations, up 39%. During the same period, the number of businesses that temporarily suspended operations dropped by 3%.

In May, interest in apartment units in Hanoi and the northern provinces surged by 9% and 19%, respectively compared to the previous month. This is seen as a sign of growing buyer confidence.

Interest in land lots began to decline in April after peaking in March. This decline was partly attributed to the long holiday period, cautious market sentiment due to tariff-related news and expectations surrounding potential changes resulting from provincial mergers.

Despite the monthly slowdown, year-on-year data shows that interest in land lots outside Hanoi increased in several northern provinces during the first five months of 2025. The strongest growth was seen in Bac Ninh, up 43%, followed by Hung Yen (38%), and Bac Giang (36%).

Vinh Phuc and Hoa Binh posted more modest gains of 11% and 8%, respectively. Meanwhile, Haiphong remained mostly flat with a 1% increase, and Quang Ninh saw a slight 4% drop.

Compared to April 2025, interest declined in most northern provinces, with Quang Ninh being the only exception, posting a 10% increase.

Despite softening interest, land prices in the north have remained stable compared to the March 2025 peak, with many areas showing strong growth compared to January 2024.

Hoa Binh recorded the highest increase in the region at 67%, remaining stable since March. Meanwhile, Hung Yen continued to perform well, with prices up 59% compared to January and unchanged since March.

Vinh Phuc and Bac Giang saw year-on-year gains of 47% and 39%, respectively. While Vinh Phuc sustained a 14% increase from March, Bac Giang dropped 7%. Bac Ninh was up 20% year-on-year and edged up 3% from March. Quang Ninh rose 12% from the peak, and Haiphong showed no significant change from either January or March.