Apartment Prices Drop 500M VND but Sales Remain Slow
In Hanoi, apartment owners are slashing prices by up to 500 million VND, yet struggling to close deals due to a saturated market and cautious buyers.
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Market Correction or Investor Exit?
Phįŗ”m Hįŗ£i, an investor, purchased a 90mĀ², 3-bedroom unit on Phįŗ”m HĆ¹ng Street for 7.5 billion VND last year, expecting to flip it for a profit. Although its market value rose to nearly 9 billion VND at one point, attempts to sell the unit for 9.5 billion have failed. Even after reducing the price to 9 billion ā back to Q3 2023 levels ā he hasn’t secured a buyer.
This scenario is increasingly common. Investor Nhung, who owns two high-end condos in ÄĆ“ng Anh, expected to flip them quickly amid limited supply. But now, even after paying 20% of the booking fee, she canāt find buyers. Brokers advise cutting 100ā200 million VND per unit, but even that hasnāt worked.
In Long BiĆŖn and Gia LĆ¢m, agents like HoĆ ng SĘ”n report a flood of resale listings. Sellers are accepting losses up to 200 million VND to attract buyers. In some projects by foreign developers, even once hot-ticket units are now being discounted heavily ā especially duplexes and larger layouts.
Supply Surge Weakens Demand
Batdongsan data shows apartment prices in Hanoi started softening from late 2024, with resale values and transaction volume down 2ā5% year-over-year. Projects like Ha Do Park View and Masteri West Heights have seen notable drops.
According to Nguyį» n Quį»c Anh from Batdongsan, many of the biggest discounts come from investors under financial pressure. These are often large, high-value units that are harder to sell.
Meanwhile, investors who bought to ālĘ°į»t sĆ³ngā (flip for quick profit) are being forced to exit as loan repayments pile up. EZ Property CEO Phįŗ”m Äį»©c Toįŗ£n notes most buyers only paid 15ā20% upfront, and now face financial strain amid rising supply.
Savills estimates Hanoi will see 25,200 new apartments launched in 2025, increasing to 70,000 by 2026. CBRE forecasts 31,000 units this year alone, especially in Äan PhĘ°į»£ng, Long BiĆŖn, and ÄĆ“ng Anh.
With new launches no longer scarce, speculative demand has weakened. Buyers are no longer rushing in with FOMO, and investor appetite is cooling fast.
Financial Leverage Risk
According to Nguyį» n Quį»c HĆ¹ng, Vice Chairman of the Vietnam Banks Association (VNBA), aggressive financial leverage strategies have exposed investors to significant risks.
āWhen mortgage pressure gets too high, distressed owners are forced to sell at steep losses,ā he said. Some resale prices have shown premiums of 50ā100% over original owner costs, driven by unrealistic expectations.
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