HÀ NỘI — The Hà Nội real estate market continues to heat up in the second quarter (Q2) of 2025, driven by a surge in high-end condominium supply, while mid-range apartments gradually lose prominence.

In a report on the capital city's property market in Q2 2025 published on July 10, CBRE experts revealed that nearly 6,850 new apartment units were put on the market in Q2, almost doubling the supply from the first quarter.

This strong momentum resulted in the introduction of over 10,760 new units in the first half of 2025, marking the second highest half-year supply volume in the past five years, just behind the same period in 2024.

What stands out this quarter was the exclusive focus on high-end projects, with all new offerings priced above VNĐ70 million (US$2,682) per sq.m (excluding VAT, maintenance fees and discounts). This new supply structure has driven the average primary price up by 6 per cent quarter-on-quarter and an impressive 33 per cent year-on-year.

Traditionally more affordable areas such as Hà Đông and Hoàng Mai, where prices typically hovered between VNĐ40 to 50 million per sq.m, also saw new developments priced above VNĐ70 million, showcasing the market’s upward trajectory.

The average primary apartment price even climbed to VNĐ79 million per sq.m at the end of the second quarter.

Meanwhile, secondary market prices have remained relatively stable, averaging around VNĐ50 million per sq.m, with only modest increases of 1 per cent quarter-on-quarter and 15 per cent year-on-year, significantly lower than last year’s peak growth of 26 per cent.

In terms of sales activity, the primary market saw nearly 5,180 apartments transacted in Q2, pushing the total units sold in the first half of the year to approximately 9,130.

Although this reflects a 31 per cent increase compared to Q1, sales volume is down 27 per cent from the same period last year. The absorption rate for new projects averaged about 60 per cent, a slight decrease from 70 per cent in 2024.

Looking ahead, 2025 is expected to remain an active year for real estate investors. Numerous projects are in the pipeline, particularly in Hà Nội’s northern and eastern areas, buoyed by infrastructure improvements such as the completion of new bridges over the Red River — Tứ Liên, Trần Hưng Đạo and Ngọc Hồi — which are boosting connectivity and buyer interest.

Additionally, several previously stalled projects in central areas like Cầu Giấy, Tây Hồ, Hoàng Mai and Long Biên are poised to resume sales in the latter half of the year, offering homebuyers more choices. The total supply for the year could reach or even surpass 31,000 units, rivaling the 2024 figures.

Senior Director of the Hanoi Branch at CBRE Vietnam Nguyễn Hoài An said: “The influx of high-priced supply will intensify competition among projects and investors. Buyers will have more options regarding location and price, but will also become more discerning, demanding higher product quality, services and amenities to match their investment.”

Meanwhile, the landed property market also demonstrated notable activity in Q2. Over 1,000 low-rise homes were introduced, marking a 32 per cent decrease from Q1 but still five times greater than the same quarter last year.

The first half of 2025 saw more than 2,500 new units put on the market, nearly nine times higher than the first half of 2024, although this remains under half the supply from the latter half of 2024.

The number of new projects increased despite the dip in units, with five new developments emerging in diverse locations including Tây Hồ, Long Biên, Gia Lâm and Đan Phượng. This expansion highlights a broadening development footprint and growing investor interest.

Primary prices for low-rise homes edged up 1.5 per cent quarter-on-quarter to an average of around VNĐ230 million per sq.m of land (excluding VAT, maintenance fees and discounts).

The presence of projects closer to the city centre and in varied locations helped lift price levels, with many offerings priced above VNĐ200 million per sq.m.

Transaction volumes for land-attached properties exceeded 2,600 units in Q2, outpacing new launches and indicating strong, sustained demand.

For the full year, Hà Nội’s low-rise supply is forecast to surpass 6,300 units, with nearly 3,800 expected in the second half alone.

The restart of several long-paused projects and planned new phases reflects investor confidence and anticipation of continued buyer interest. — VNS