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Hanoi’s real estate awaits new supply

Hanoi’s real estate awaits new supply
  The Hanoi market is expected to offer about 12,100 more apartments in 2024. (Photo: VNA)  
House buyers in the capital can pin hopes on new supply coming from infrastructure development this year, which is expected to push up demand for housing in neighbouring localities with reasonable prices and larger land reserves.

Savills Vietnam has considered this a positive factor on the supply side. Infrastructure development projects to build the belt roads No. 3, 4, 5, for instance, will expand the capital's housing market and demand will no longer concentrate on the downtown areas.

Savills' survey shows that in 2024, the Hanoi market will offer about 12,100 more apartments, with as much as 87% of them located in Hoang Mai, Nam Tu Liem, and Ha Dong districts. Additionally, neighbouring provinces like Hung Yen and Bac Ninh are to host approximately 203,000 more apartments between 2024 and 2026.

Do Thu Hang, Senior Director at Savills Hanoi’s research and consulting department, underscored the possible impact brought about by the recently amended real estate business law, amended housing law, and amended land law.

With developers required to complete financial obligations before building their future products, confidence is higher in future buyers, Hang said.

However, facing the market are challenges stemming from limited supply and imbalance between supply and demand, especially in affordable housing. In the fourth quarter of 2023, Hanoi saw the lowest number of new supply in a decade, regarding both low-rise and apartment segments.

According to Hang, given the restricted supply and high prices in the primary market, opportunities for homebuyers may lie in the secondary market, which offers affordability, a wider range of choices, and better legal assurances./.

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