Hanoi apartment prices have leveled off after a crazy increase. Should investors buy?

Should buy apartment 2 - 3 billion dong

Mr. Nguyen Quang Huy, CEO of the Finance - Banking Faculty, Nguyen Trai University, analyzed that the price of apartments in Hanoi is slowing down after a continuous increase due to the abundant new supply, especially in the mid-range and social housing segments. Meanwhile, the interest rate for home loans has not decreased deeply, affecting customers' decision to spend money. The psychology of waiting for prices to decrease also prevents liquidity from exploding.

In this context, according to Mr. Huy, if you tend to buy an apartment for investment, you should choose apartments with a price of 2 - 3 billion VND because this is the segment with the best liquidity, suitable for the financial capacity of real home buyers, especially young customers and young families.

This segment also has easy access to loans as interest rates gradually decrease and credit policies loosen, and is also easy to lease, transfer and has a stable price increase margin.

Mr. Huy also recommends choosing projects that are located near the center, have good infrastructure, full amenities, reputable investors, projects with transparent legal status, and guaranteed progress. In addition, prioritize apartments with reasonable areas, from 55 - 80 m², and optimally designed functions.

For investors who are holding a lot of inventory, Mr. Huy said that they should not cut losses massively at this time, but they can consider selling off apartments that are difficult to liquidate or have high financial pressure. "If you own an apartment in an area with good development potential, you should keep it and wait for the recovery wave in 2026. In addition, take advantage of debt extension policies and financial support to reduce cash flow pressure," Mr. Huy said.

Sharing the same opinion, Mr. Pham Duc Toan, General Director of EZ Real Estate Investment and Development Joint Stock Company, also said that investors should only spend money to buy cheap apartments at this time.

According to Mr. Toan, about 2-3 years ago, apartments were rarely in the attractive investment portfolio because of the mentality that this was a consumable asset, depreciating over time. However, when the new supply in Hanoi gradually became limited, this product was interested again by many investors with a safe taste. Because of the monthly rental cash flow combined with the price increase rate, investing in apartments brings better profits than current savings.

However, the current apartment prices are too high, so buyers will easily "buy at the top", leading to great risks. For example, an apartment costs 4 - 5 billion VND but the rental rate is only about 10 million VND/month, while an apartment costs 2 - 3 billion VND, the rental price is also equivalent. Therefore, according to Mr. Toan, even when the market slows down, you should only invest in products with reasonable prices.

Mr. Nguyen Quoc Anh - Deputy General Director of PropertyGuru Vietnam also said that the slowdown in apartment prices is a positive sign, but whether this trend is sustainable or not still needs more time to monitor. In the context of the market with unclear trends, home buyers need to consider carefully before spending money.

According to him, you should only buy cheap, reasonable products. He also noted that the time of purchase is not as important as preparing solid finances. Buyers should have at least 30-40% of the house value in their own money. It is necessary to ensure a stable cash flow in the next 3-5 years to avoid financial pressure when borrowing to buy a house.

Will apartment prices continue to fall?

Commenting on apartment prices in 2025, many experts say that although they are currently slowing down, it will still be difficult to decrease.

According to a CBRE report, last year, secondary apartment prices in Hanoi increased by more than 26% - the highest level ever recorded, reaching an average of VND48 million/m2. Although this growth trend tends to slow down in early 2025, it is still expected to increase by an average of 6-8% annually.

Mr. Tran Quang Trung, Business Development Director at OneHousing, emphasized that waiting for apartment prices to decrease in 2025 is not feasible. He compared apartment prices with car prices as an example. Accordingly, people often think that car prices will decrease over time, but high-end cars like the Lexus 570 have not decreased in price. In 2009, the price of this car was about 4 billion VND, but now it is about 8 billion VND.

With real estate, in 2026 - 2027 when supply improves, investors may seek to attract customers with promotional programs. However, this will not happen this year.

At the workshop "Hanoi apartment market, what are the sustainable living and investment options?", Mr. Ngo Huu Truong - Deputy General Director of Hung Thinh Corporation shared that in the coming time, real estate prices, especially the apartment segment, will be very difficult to decrease. Real estate has long been considered an asset that accumulates value, especially in Asian countries, where the mentality of "land and houses are savings" is very popular.

In addition, the increase in gold price and exchange rate has led to the shift of cash flow. Many investors use real estate as a basis for accumulating value.

According to Ms. Nguyen Minh Chi, Deputy General Director of Phu Tai Land, the current supply cannot meet demand, especially in inner-city districts where fewer and fewer projects are being implemented.

Not to mention the fact that every year thousands of students flock to the capital to study and thousands of graduates enter the labor market, all of whom want a place to settle down. Therefore, the demand for housing in Hanoi can only increase, not decrease.

In terms of policy, Hanoi is expanding to meet the living and working needs of people from all over. However, projects in inner-city districts are increasingly scarce. According to a survey, Hoang Mai district has only 1 project, while Thanh Xuan or Ha Dong districts have 1-2 projects. If supply is not enough to meet real demand, prices will only continue to increase, especially when Hanoi's land fund is increasingly limited.