Prices on the primary market – where developers sell directly to buyers – averaged VND75 million (US$2,915) per square meter in the first three months, a 3% growth from the last quarter of 2024, according to property consultancy CBRE.
This was the slowest quarterly growth since the second quarter of 2023.
The secondary market – where buyers sell to other buyers – also saw slower price growth at 3% to VND50 million.
In most projects, prices were stagnant, except for those in prime areas where leasing potential was high.
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Buildings in Hanoi. Photo by VnExpress/Giang Huy |
Data from research firm Cushman & Wakefield echoed these findings, reporting declining demand for Hanoi’s apartment sector.
The market recorded sales of over 4,300 units, a 53% drop from the previous three-month period.
Absorption rates weakened as buyer confidence waned, with many prospective buyers adopting a cautious stance amid ongoing economic uncertainties.
Most of the new units, 77%, were in the high-end and luxury segments, and few were affordable.
Property listing platform Batdongsan has seen apartment prices in the capital going flat since the end of last year.
Sellers of projects such as Ha Do Park View and Trung Yen Plaza in Cau Giay District, and Masteri West Heights and FLC Garden City in Nam Tu Liem District, have lowered their listing prices by 2-5% from the first quarter last year.
Nguyen Hoai An, senior director at CBRE Hanoi, said the slowdown was expected after two years of steep price hikes of 35-40%.
In previous quarters, prices could climb 8-9% monthly, but now growth is only about 3%, she said.
She attributed the moderation to homeowners adjusting their asking prices after holding onto high expectations. Without offering discounts, they might have trouble finding buyers as sentiment softens.
Sellers, however, are mostly not selling at a loss. Many have bought their apartments two or three years ago and selling them now would most likely guarantee profits, even if they label the sale as “loss cutting”.
But analysts say that some speculators in certain projects might actually record losses in their sales.
Pham Duc Toan, CEO of property brokerage EZ Property, said that speculators in the western, eastern and southern parts of the city bought when prices were surging in hope of a quick profit.
Those who have paid 15-20% of mortgages are now seeking to sell quickly due to limited funding.
The steady rise in supply also adds further pressure on sellers. CBRE expects Hanoi to see 31,700 new apartments this year.
“With new supply no longer scarce and buyer confidence stabilizing, apartments are unlikely to record much sales as last year,” said Toan.
