Forecast: In 2023, Hanoi's housing demand will go up

The strong housing demand in Hanoi, and a reduction in sales volumes due to the high prices against people's average income. A shortage of property supply remains the main reason keeping Hanoi housing demand in 2023. 

Overlook of Hanoi housing demand

During the last months of 2022, sales volumes stayed in stark contrast to the previous boom period. 

Insiders showed that this situation is due to incompletely regulating several laws in property, coupled with a sharp decline in liquidity as a result of the government's direction to restrict credit flows in high-risk fields and tighter regulations on corporate bond issuance.

Currently, Hanoi has 31 new property projects with a total of 2,030 units. Among them, Eurowindow River Park is the only apartment building with a price of below VND30 million (US$1,279) per square meter, with nearly 40% of the units sold after being listed for two weeks.

Increase in selling prices of apartments in Hanoi

The VARS report noted that new apartment offers in Hanoi were at the lowest level in the last eight months due to rising prices, averaging almost VND47 million ($2,000) per square meter or an 11% annual increase since 2018.

“The majority of new projects are in the city’s Eastern area thanks to the available land funds and improving infrastructure,” Thanh from VARS said.

He added that, in the short term, the low and middle segments would be in high demand, which would translate into house price increases in the first half of 2023.