There were approximately 2,000 condominiums launched in Hanoi in the first quarter of 2023, according to CBRE Vietnam.

The figure represents a year-on-year decline of 44 per cent, while the number of units sold quarterly was the lowest since 2020.

The limited supply was attributed to ongoing caution among both investors and buyers together with the impact of macro factors on the real estate market, such as high interest rates and tightened credit policies, and disruptions from the Tet (Lunar New Year) holidays.

The number of units sold during the first quarter was down 58 per cent year-on-year. However, CBRE said it has noted the return of foreign buyers, especially from Hong Kong (China) and Singapore, which is a positive sign for the property market.

The average selling price in the primary market was $1,992 per sq m, up 20 per cent year-on-year.

Hanoi’s urbanization rate is predicted to reach 62 per cent by 2025 and 75 per cent by 2030, from the current 49 per cent, according to Savills. This means the capital will need around 426,700 new units by 2025.