Apartment prices in Hanoi and Ho Chi Minh City have continued their upwards trajectory according to recent reports on the real estate market in Vietnam’s two biggest cities from property consultants DKRA and Savills.

Primary prices for apartments in Ho Chi Minh City rose 2-4 per cent in 2022 compared to 2021 and 15 per cent year-on-year in Hanoi in the fourth quarter.

Experts from the Vietnam Association of Real Estate Brokers explained that the price hikes were attributed to rising inflation and interest rates as well as increasing construction costs. It is also difficult for the primary prices of apartments to fall due to high demand during urbanization and limited supply.

Hanoi will need 9.69 million sq m of apartments, or 166,600, by 2025 to meet demand, according to an expert from Savills. However, only 70,000 apartments are scheduled to open for sale by that time.