HÀ NỘI — With strong growth in both the residential and serviced apartment markets in 2024, Hà Nội’s real estate sector is expected to remain this growth throughout 2025, according to Savills Hanoi.

Savills Hanoi's report on the capital's property market in the fourth quarter of 2024 showed that it saw impressive growth.

A total of 13,401 residential units were sold, reflecting a remarkable 96 per cent rise quarter-on-quarter and 340 per cent year-on-year.

This surge in sales can be largely attributed to new supply, which made up 83 per cent of the total units sold, achieving an absorption rate of 85 per cent.

The high demand for these units is driven by clear legal statuses and the involvement of reputable developers, according to Đỗ Thu Hằng, Senior Director of Advisory Services at Savills Hanoi.

The fourth quarter of 2024 also witnessed a significant increase in new supply, with 12,972 new units introduced to the market. This represents a 146 per cent quarter-on-quarter and 351 per cent year-on-year increase.

Primary stock reached 16,629 units, reflecting a 58 per cent increase from the previous quarter and a 40 per cent rise from the same time last year.

In total, Hà Nội saw the highest level of new supply in five years, with 24,996 units launched in 2024.

The majority of these units, 97 per cent, were Grade B apartments, (as classified by national directive in terms of quality and technical specifications) predominantly driven by mega-projects like Vinhomes Ocean Park and Vinhomes Smart City, which together accounted for 89 per cent of the new stock.

“Supply shortages are easing but prices remain elevated, reflecting the market’s continued strong demand,” Hằng said.

The average asking price in the primary market for residential units reached VNĐ75 million per square metre of net sellable area (NSA), marking a nine per cent increase from the previous quarter and a 29 per cent rise from the same period in 2023.

In 2024, properties priced above VNĐ4 billion made up 59 per cent of total sales, a sharp increase from just two per cent in 2020. Units with prices between VNĐ2 billion and VNĐ4 billion represented 40 per cent of sales, while those priced under VNĐ2 billion accounted for only one per cent.

In the secondary market, there was notable growth, particularly near Metro Line 2A and Line 3 stations. Prices in these areas rose by 24 per cent from the previous quarter, outperforming the market average by four percentage points.

Over the past four years, average secondary prices have increased by 22 per cent annually, with Grade C properties seeing the largest year-on-year growth at 26 per cent, followed by Grade B at 20 per cent, and Grade A at 19 per cent.

Local buyers remain the primary drivers of residential demand in Hà Nội. The long-term outlook for the market is also bolstered by increasing urbanisation and positive net migration trends, reported Savills Hanoi.

According to the Hà Nội master plan, the permanent population is expected to grow to 11 million by 2030, up from 9 million at present. Additionally, the number of temporary residents is projected to increase by 1.5 million, while urbanisation rates are forecast to rise from 49 per cent to 70 per cent by 2030.

Looking ahead, 2025 is expected to see the introduction of 25,200 new units, with Grade B properties again comprising the largest share, making up 88 per cent of the future supply. Major projects will represent 70 per cent of the new stock.

From 2026 onward, approximately 70,000 units from 91 projects are anticipated, with key developments in Đông Anh, Hoài Đức, and Hoàng Mai, expected to contribute 52 per cent of the total new supply.

Serviced apartments

"The expansion and development of industrial parks in Hà Nội, coupled with strong FDI inflows, are driving significant demand for serviced apartments” added Mathew Powell, Director, Savills Hanoi.

As of the fourth quarter of 2024, the total stock of serviced apartments stood at 6,246 units across 64 projects, showing a slight increase of three per cent year-on-year.

Occupancy rates improved by two percentage points, reaching 84 per cent, with Grade A and Grade B apartments seeing higher occupancy, while Grade C properties experienced a slight decline.

Average rents also increased by 1 per cent quarter-on-quarter and 2 per cent year-on-year, although Grade C rents saw a decrease.

Looking forward, 17 new serviced apartment projects are expected to launch 4,077 units from 2025 onwards. Of which, seven projects scheduled for 2025 will deliver 2,889 units, with the Tây Hồ View Complex expected to contribute a significant portion of Grade A units.

The future supply will be concentrated in secondary areas, with 83 per cent of new units expected to be in these regions, and 17 per cent in the western parts of the city.

Branded operators will dominate the serviced apartment market, accounting for 87 per cent of the future supply. Notable international brands entering the Hà Nội market include The Ascott, Lotte Group, Parkroyal Serviced Suites Hà Nội, Shilla Hotels & Resorts, Hilton and Hyatt. — VNS