The supply of luxury apartments in central Hanoi is becoming increasingly scarce, pushing starting prices to new highs.
While the overall supply of apartments in the capital has improved in the first half of 2024, most new high-end projects are being developed further from the city center.
According to CBRE, Hanoi saw 10,800 new apartments launched in the first six months of the year, marking a 176 per cent increase year-on-year.
Sales activity was also robust, with 12,200 apartments successfully sold, representing a 185 per cent annual growth.
The average price of apartments in Hanoi has surged by 25 per cent from a year ago, reaching VND 59 million per square meter ($2,360), narrowing the gap with Ho Chi Minh City.
Indochina Capital forecasts that Hanoi will receive an additional 13,460 apartments from eight new projects and subsequent phases of two integrated townships in the western part of the city in the last months of 2024.
Despite the rise in supply, high-end and luxury apartment segments in central districts such as Hoan Kiem, Ba Dinh, Dong Da, and Hai Ba Trung are becoming increasingly scarce.
Over the past four years, only a few notable developments have been added, including The Ritz Carlton Residences with 104 units and The Grandeur Palace Giang Vo.
This year, the only ultra-luxury project set to be introduced in central Hanoi is The Nelson Private Residences in Ba Dinh district, developed by HDMon Group and sold by Indochina Capital.
The project is expected to start at VND 135 million per square meter ($5,400), one of the highest starting prices seen in Hanoi. The Nelson will feature 175 luxury apartments, catering to affluent buyers seeking exclusivity and privacy.
Michael Piro, COO of Indochina Capital, commented, "Scarcity drives value, and with only 175 private luxury units, The Nelson's limited supply will enhance capital appreciation for its buyers."
The project is 90 per cent complete and expected to be ready for handover by the third quarter of next year.
