In the second quarter, the secondary apartment market recorded a growth rate of 13%, half of the peak level two years ago, according to CBRE.
In its second-quarter market report, real estate services firm CBRE said that the apartment segment in Hanoi recorded contrasting developments between the secondary (resale) and primary (from developers) markets.
In the secondary market, the average selling price of apartments reached 60 million VND per square meter, down nearly 3% compared to the previous quarter. CBRE noted that this is the first time secondary price levels have recorded a downward adjustment since the end of 2022. The year-on-year growth rate also narrowed significantly to 13%, half of the 26% peak in the 2024-2025 period.
“After a period of hot growth, the capital’s apartment market began to adjust in the face of high interest rates and abundant primary supply,” said Nguyen Hoai An, Senior Director of CBRE Hanoi.
The cooling trend in the secondary market was also noted by many research units. The online real estate information channel Batdongsan, under PropertyGuru Group, stated that Hanoi’s housing market is facing downward price pressure across many segments and areas. For the apartment segment, the average listing price (both primary and secondary) on this platform reached 85 million VND per square meter, continuing its decline over the past three months. Market interest in May also dropped by 36% compared to the same period last year.
In a recent industry report, SSI Securities Joint Stock Company said that the 12-month fixed promotional interest rate has increased to 8.5-10% per year, from the previous 6.5-8.2%. Meanwhile, floating home loan interest rates rose to 11-15% from 9-11% per year. This development has affected home-buying demand.
A row of apartment buildings in western Hanoi. Photo: Giang Huy
A row of apartment buildings in western Hanoi. Photo: Giang Huy
In contrast to the secondary market, the supply and selling prices of new inventory from developers continued to rise. In the first half of this year, the supply of apartments offered for sale in Hanoi reached 16,600 units, the highest level in the first half of the year since 2020. Regarding product structure, this is the second consecutive quarter that the market has had no new products priced under 60 million VND per square meter. Meanwhile, the segment above 120 million VND per square meter accounted for more than a third of the proportion, concentrated in 4 projects in the Thanh Xuan, Tay Ho, and Dong Anh areas.
Although new projects were continuously launched, CBRE said that the purchasing power of apartments across the entire market showed signs of slowing down. The total number of units sold in the quarter only reached 68%, whereas two years ago, this rate regularly exceeded 90%.
Nguyen Hoai An explained that the rising prices of new apartments were due to project input costs such as land rent and land use fees, site clearance compensation, financial costs, and raw material prices being significantly inflated. All these factors are reflected in the developers’ launch prices to the market. Meanwhile, the demand for buying apartments for living and investment declined as lending interest rates tended to rise and price levels remained high, dragging down the absorption of secondary products.
CBRE forecasts that apartment supply will continue to rise sharply in the remaining quarters, potentially raising the total annual supply to nearly 39,000 units, surpassing the 2019 peak of more than 37,000 units. According to the firm, the large scale of launches requires developers to carefully consider pricing strategies, product structure, and financial support policies in the context of increasing competition.
Leave a Reply