Hanoi’s apartment prices now average 4 billion VND ($160,000), far outpacing household incomes and making homeownership increasingly difficult.

Hanoi’s property market is entering a new phase, driven by foreign-backed partnerships and legal reforms. While this evolution promises growth, it also raises concerns about accessibility for smaller investors.

The highest winning price at the latest land auction in Tan Phu commune in Quoc Oai district in Hanoi was VND76.6 million per sq m, down VND18 million, or 20 percent, from the figure in November 2024.

With new land prices fixed by Hanoi authorities taking effect on December 20, 2024, many Hanoians now have to pay from hundreds of million of dong to billions of dong to convert different land types to residential land.

Amid skyrocketing apartment prices, Hanoi is expediting social housing projects across multiple districts. With thousands of affordable units on the way, will the city’s real estate market finally see relief?

Vietnam’s real estate market saw significant growth in 2024, with Hanoi leading the charge as apartment prices surged 50% and luxury units crossed $8,400/m².

The new land price list released by Hanoi authorities, with price levels 2-6 times higher than the former levels, is expected to lead to higher prices of real estate products. But this is not the only reason behind the price increase.

Hanoi’s property boom is evident in districts like Cau Giay, Nam Tu Liem, and Tay Ho Tay, where apartments now fetch up to 220 million VND per square meter.

Hanoi remains a bright spot for the supply of landed properties (townhouses and villas), with total supply expected to exceed 7,000 units in 2025, according to a survey by CBRE Vietnam, a foreign real estate service company.

Land auctions in suburban Hanoi have cooled down significantly, with December bids dropping by up to 20% compared to previous months, reflecting a shift from the overheated market earlier in 2024.

Tay Ho Tay (West West Lake) Urban Area has emerged as Hanoi’s most expensive urban location, with land prices exceeding $4,600/m² according to the city's updated valuation.

Tran Kien, an overseas Vietnamese in Australia, was surprised when a real estate broker told him that, even with VND22 billion ($865,000), he 'could not buy anything in Vietnam’.

The Hanoi Department of Natural Resources and Environment emphasized the need to gradually adjust land price tables to align with market values.

After prolonged price surges, Hanoi’s real estate market is showing signs of stabilization, with some properties seeing price cuts of hundreds of millions of VND.

Apartments with prices below VND50 million per sq m can no longer be found in Hanoi. Buying an apartment with two bedrooms for around VND3 billion is impossible.

Hanoi’s authorities have granted approval for more than 1,200 apartments in two prominent residential projects, Lumi Hanoi and Heritage West Lake, to be sold to foreign buyers.

Affordable housing in Hanoi is becoming a rarity as legal hurdles and soaring prices reshape the market, leaving middle-income buyers in a bind.

Apartment prices continue to surge in Hanoi, with affordable housing under 25 million VND ($1,000)/m² nearly vanishing, sparking concerns over accessibility for low- and middle-income earners.

With social housing units in Hanoi reaching prices as high as 50 million VND per square meter, aspiring buyers now face a multi-billion VND challenge to enter the market.