The Search for Affordable Housing in Hanoi

For months, Nam and his wife have been on a relentless quest to find a new apartment in Hanoi. Their dream? A two-bedroom unit of 60-70 square meters, priced around VND3.5 billion ($146,000). Yet, their search has been in vain, with most options far exceeding their budget, pushing them to consider neighboring Hung Yen province.

The scarcity of affordable housing in Hanoi has reached a critical point this year, with new projects starting at VND60 million per square meter and only two available at this price. Others soar to VND70-100 million, making the dream of homeownership increasingly elusive for many.

The Dominance of Luxury Apartments

According to One Mount, mid-range apartments (VND30-50 million per square meter) have vanished from Hanoi's market for five consecutive quarters. The Vietnam Association of Realtors highlights a market saturated with high-end and luxury apartments, leaving a glaring gap for affordable options.

CBRE reports a 33% year-on-year increase in the average price of new launches, now at VND79 million. Nguyen Hoai An of CBRE Hanoi points to higher land costs and diminished developer interest in affordable housing as key factors driving this trend.

Future Prospects and Market Implications

With Savills predicting 58,100 new apartments by 2027, the outlook remains grim for affordability. Experts warn of the broader economic implications, as rising prices deter young and middle-income buyers, with over half of surveyed readers postponing purchase plans due to soaring costs.