80TH Anniversary August Revolution and National Day
Log in
Property

Lack of budget housing challenges Hanoi property market

The average prices of new apartments for sale in Hanoi in 2022 are from VND30 million (US$1,311) per square meter onwards, which target customers of middle- and high-income groups.

A lack of low-cost housing projects continues to be a major issue of the Hanoi property market in 2022, as most of those which will be completed in 2022 or open for sale are mostly of mid and high-end segments.

Data from the real estate website batdongsan.com.vn suggested the average prices of new apartments for sale in 2022 are from VND30 million (US$1,311) per square meter onwards, which target customers of middle to high-income groups.

 A housing project in Hanoi. Photo: Doan Thanh

These include the Park Home project (Cau Giay District) from VND38-42 million per square meter; The Nine (Cau Giay) with those priced at VND42-50 million; Trinity Tower (Thanh Xuan District) VND38.5 million; Mipec Rubik 360 (Cau Giay) VND48-53 million.

After a difficult period of struggling with the Covid-19 impacts, Hanoi’s real estate market has seen positive signs over the recovery and growth prospects.

However, future sources of supplies would mostly be concentrated in suburban districts, including Hoai Duc, Dong Anh, Thanh Tri, Gia Lam, or Dan Phuong.

“We see a shift in investment trend to districts surrounding the downtown of Hanoi, due to the high investment cost and low rate of return in the metropolitan area,” Senior Director of Advisory Services at Savills Hanoi Do Thu Hang told The Hanoi Times.

“Investors are looking for business opportunities in rural districts and even of neighboring cities/provinces to Hanoi such as Hung Yen, Bac Ninh, Quang Ninh, or Haiphong,” she added.

While the move may partly relieve pressure from rising housing prices in downtown Hanoi, the imbalance of supplies has distorted the supply and demand.

A representative of the Department of Housing and Real Estate Management under the Ministry of Construction admitted the lack of social housing projects or budget commercial houses, which poses a stark contrast to an abundant supply of luxury housing in Hanoi and Ho Chi Minh City.

“This could lead to an unstable development of the real estate market, especially as mid-and high-priced housing projects are making up 90% of the supply in the market,” he added.

A national housing development strategy for the 2021-2030 period, with a vision to 2045, sets the goal of ensuring sufficient supply of affordable houses for low and middle-income groups, seen as a key factor for the market’s sustainability.

Under current regulations, the Government has now given greater authority to provinces/cities in licensing housing projects. As such, only projects of up to 300 hectares or in residential areas of over 50,000 people would need approval by the prime minister.

Vice Chairman of the Hanoi Real Estate Club Nguyen The Diep said simplified procedures would speed up the housing approval process, but called for drastic measures from local authorities to address the imbalance in housing supply.

“There should be a halt or limit the issuance of construction licenses for luxury housing projects, and give priority to budget ones,” Diep told The Hanoi Times.

“A strict process from the beginning is the key step to fix the current imbalance in the real estate market,” he added.

Reactions:
Share:
Trending
Most Viewed
Related news
IFC supports Vietnam’s digitalization of road infrastructure

IFC supports Vietnam’s digitalization of road infrastructure

Vietnam is poised to transform its road infrastructure and urban mobility landscape by expanding the adoption of cashless tolling and other digital payment services for transportation.

Hanoi retail market poised for continued growth

Hanoi retail market poised for continued growth

Major urban centers like Hanoi and Ho Chi Minh City stand out in Southeast Asia for their young populations and growing appetites for retail and experiential consumption.

National housing development fund to begin with $190 million

National housing development fund to begin with $190 million

The National Housing Development Fund may debut with VND5 trillion (US$190 million) in capital.

Vietnam rolls out land management guidebook for two-tier administrative system

Vietnam rolls out land management guidebook for two-tier administrative system

In addition to outlining the roles and responsibilities of local authorities, the handbook provides citizens with step-by-step guidance on completing land-related procedures under the new system.

Hanoi real estate sector contributes $3.3 billion to state budget in H1

Hanoi real estate sector contributes $3.3 billion to state budget in H1

Large-cap Hanoi real estate developers such as Vingroup and Nam Thang Long Urban Area Development paid the most fees and taxes to the state budget between January and June.

Vietnamese Government set to revise Land Law 2024

Vietnamese Government set to revise Land Law 2024

Land legislation still presents shortcomings and remains inconsistent with the two-tier local government model and the country’s development objectives in the new era.

Hanoi approves 150 land sites for commercial housing projects

Hanoi approves 150 land sites for commercial housing projects

Hanoi plans to use 150 land areas to build commercial housing infrastructure and increase the supply of affordable homes.

Nearly 22,000 new homes in Hanoi listed in H1

Nearly 22,000 new homes in Hanoi listed in H1

Apartments made up the majority of housing units available for sale in Hanoi during the first half of 2025.