Ha Noi: Improved Supply, But Prices Remain High – Where Are The Homeownership Opportunities?

The Savills report on Ha Noi's real estate market indicates that the apartment segment shows improvement in supply compared to five years ago, but prices are still high. This creates challenges for budget-conscious buyers, although opportunities remain for those looking to buy homes. 

Improved Supply but High Prices 

Notably, supply has significantly increased compared to five years ago, with 24,996 new apartments expected in 2024, the highest since 2020. New supply surged in Q4/2024, with 12,972 units, representing a 146% quarter-on-quarter (QoQ) and 351% year-on-year (YoY) increase. Primary supply reached 16,629 units, up 58% QoQ and 40% YoY. 

However, apartment prices remain high. The primary asking prices averaged VND 75 million/sq m net sellable area, up 9% QoQ and 29% YoY.  In 2024, units priced above VND 4 billion accounted for 59% of total sales, a significant rise from just 2% in 2020. Units priced between VND 2 billion and VND 4 billion captured 40%, while those priced under VND 2 billion made up only 1%. 

According to Do Thu Hang, Senior Director of Advisory Services, Savills Ha Noi, "Apartment prices in Ha Noi's primary market continue to stay high, even Grade C apartments. Traditionally, Grade C is considered affordable commercial housing, with prices ranging from VND 30-40 million/sq m, which have now risen to around VND 50 million/sq m. Lower-priced apartments are increasingly rare." 

Ms Hang noted that high prices significantly impact the affordability of buyers with real housing needs, highlighting the shortages of affordable housing options in the market. However, what is not to be missed is that the need for higher-end housing is still there. Savills data shows that in Q4/2024, Grade B apartments dominated new supply with a 97% market share and achieved an 85% absorption rate, thanks to clear legal frameworks and reputable developers. 

The Senior Director of Advisory Services added, "These data mean that the current market issue is the shortage of affordable housing supply, but the strong demand for higher-end apartments cannot be ignored. As prices continue to rise, buyers with limited budgets will find it difficult to access homes that fit their financial capacity." 

Homeownership Opportunities 

Savills forecasts that the new apartment supply in Ha Noi will reach 25,200 units in 2025, with Grade B remaining the largest, contributing 88% of future supply. 

From 2026 onwards, approximately 70,000 units from 91 projects are expected, with Dong Anh, Hoai Duc, and Hoang Mai districts delivering 52% share. 

Ms Hang shared, "Currently, the market is imbalanced in supply. However, with adjustments to the Land Law, Real Estate Business Law, and Housing Law, we believe more attention will be given to developing affordable housing in suitable areas. The law of supply and demand suggests that supply will gradually catch up as demand persists." 

She also highlighted that buyers still have options to seize homeownership opportunities. While apartments under VND 2 billion are rare in the primary market, they still exist in the secondary market, albeit mostly in surrounding areas and with smaller sizes. Additionally, many planned projects are in the pipeline, which could replenish the supply of sub-VND 2 billion apartments in the future. Social housing could be an alternative if commercial markets fail to meet this demand. Savills expects more social housing projects to be launched, addressing the population's housing needs. 

Regarding homeownership opportunities, Ms Hang emphasised that owning a home requires financial readiness and knowledge. For young people, especially fresh graduates, accumulating sufficient resources to buy a house immediately is often unrealistic, making financial planning essential. 

Buyers can take advantage of the home loan package. Leveraging financing tools can shorten the time needed to own property, but having a sound financial plan is crucial to ensure repayment capacity. 

Another strategy is to consider properties in suburban areas with more affordable prices. While this may require flexibility in commuting, it is a viable solution for budget-conscious buyers. Moreover, Ha Noi's upcoming infrastructure developments, such as the Tu Lien Bridge, Ngoc Hoi, Tran Hung Dao, and the Belt Road 4 - Capital Region Project, will enhance connectivity between Ha Noi and its surrounding areas, making suburban living more convenient. 

For those not yet ready to buy, renting is a practical alternative. This trend is common in many countries, especially when housing prices are high and young people need time to build their finances. Today, numerous quality rental options meet living needs while waiting for the right buying time. 

"Homeownership is not just a purchase decision but also requires a well-thought financial strategy. Whether choosing to buy immediately, rent, or invest in any property segment, individuals should carefully consider their financial situation and personal plans," Ms Hang concluded.