The real estate market in Hanoi is undergoing significant changes, particularly in the low-rise segment, as investors adapt to shifting demands and rising prices. In the first quarter of 2025, the market saw a notable recovery, with absorption rates reaching 52% and interest increasing by 75% compared to the previous quarter, according to the Vietnam Real Estate Brokers Association.
As the demand for low-rise properties continues to grow, Vinhomes is leading the charge by opening up the low-rise segment to investors with limited capital. Their latest project, Vinhomes Golden Avenue, is set to attract attention from buyers looking for affordable yet desirable options.
One of the standout projects in the area is The Manor Central Park, which has become a focal point for investors due to its low construction density and prime location. This development is described as a 'diamond in the core area' by many real estate experts. The Aristo, a new subdivision within The Manor Central Park developed by Bitexco Group, combines elements of both business and living spaces, making it a unique offering in the market.
"The Aristo is a perfect blend of shop and villa elements, making it an attractive option for both investors and residents," said Phan Le Khoi, Marketing Director at Bitexco JSC. This project aims to create a vibrant community that embodies a modern lifestyle while providing residents with ample amenities.
Alongside The Aristo, the recently opened Dwight School Hanoi adds to the appeal of The Manor Central Park, providing an excellent educational option for families. Parents like Nguyen Hanh, who are considering enrolling their children, see the proximity to such institutions as a major advantage. "The ideal living environment next to a top-notch educational institution is a significant factor for many investors like me," she noted.
As the first quarter of 2025 progressed, the overall market dynamics shifted. The total number of transactions in the villa and townhouse sector reached 1,629 units, a 49% decrease from the previous quarter but a stark increase year-on-year. The Vinhomes projects have been instrumental in this recovery, with Vinhomes Global Gate absorbing over 80% of its supply, while Vinhomes Wonder City has sold around 30% of its offerings.
According to Savills, the price structure of villas and townhouses in Hanoi continues to rise, with properties priced above 30 billion VND now accounting for 36% of the market. On the other hand, those under 20 billion VND are becoming increasingly scarce, prompting many investors to look towards satellite provinces for more accessible options.
"The market is evolving, and we see a clear trend where buyers are seeking properties that offer long-term value and potential for appreciation," said Do Thu Hang, Senior Director at Savills Hanoi. She emphasized the importance of strategic investment, noting that properties in well-connected areas with experienced developers are becoming more sought after.
The overall absorption rate for the market in the first quarter was recorded at 41%, reflecting a 26-point decrease from the previous quarter but a 13-point increase compared to the same period in 2024. This indicates a gradual improvement in buyer sentiment and market conditions.
While the primary market has seen a decrease in prices for low-rise properties, the secondary market is experiencing a different trend. Villa prices have increased by 10% quarter-on-quarter, reaching 195 million VND per square meter, while adjacent house prices have risen by 15%, reaching 227 million VND per square meter. This suggests that despite the challenges, there is still strong demand for quality properties.
Looking ahead, the Hanoi real estate market is expected to welcome 2,210 new units from nine projects in 2025, with notable developments from Sunshine Group, including Sunshine Grand Capital and Sunshine Royal Capital. The anticipated increase in supply is expected to ease some of the pressure on the market, especially for buyers seeking more affordable options.
In the context of a rapidly changing economic environment, investors are increasingly prioritizing properties with long-term value and growth potential. Many are shifting their focus to satellite provinces where prices are more manageable, indicating a strategic approach to real estate investment.
As the market continues to evolve, it remains crucial for investors to carefully assess the value of properties based on their location, quality, and potential for appreciation. The current landscape demands a thoughtful and informed approach to ensure successful investments in the competitive real estate sector.
In conclusion, the Hanoi real estate market's resilience and adaptability in the face of rising prices and changing demands highlight the importance of strategic investment. As developers introduce new projects and buyers seek properties that offer long-term value, the landscape is poised for continued growth and transformation.
