Hanoi's housing prices have outpaced income growth since 2019, with real estate firm Savills Vietnam reporting a 13% surge in apartment prices during the same period. The city targets a per capita income of VND150 million by 2023, yet apartments on the secondary market averaged VND33 million per sq. meter. This discrepancy has led to a stark contrast, with workers needing 15 years of income for a 50 sq. meter apartment. Hanoi's housing-to-income gap has widened, even surpassing that of Singapore. The demand-supply gap remains substantial, causing sustained price increases and a projected deficit of 70,300 housing units by 2025.
Hanoi's housing prices have increased twice as fast as people's incomes since 2019, as reported by real estate consultancy Savills Vietnam. The city aims to achieve a per capita income of VND150 million (US$6,356) by 2023, with a 6% annual growth rate since 2019. During the same timeframe, apartment prices have surged by 13%.
According to CBRE Vietnam, the average price for an apartment in the secondary market during the second quarter was VND33 million per square meter, while townhouses were priced at VND154 million. The General Statistics Office states that the average monthly income for a salaried worker in Hanoi was VND9.7 million. As a result, relying solely on their salary, a person would need nearly 15 years' worth of income to afford a 50-square-meter apartment and 100 years' worth of income to buy a 75-square-meter townhouse.
Batdongsan, a real estate trading website, reported that the typical income of workers in Hanoi is around VND135 million. Meanwhile, the average costs for a townhouse and an apartment are VND6.3 billion and VND3.1 billion respectively. According to the same source, Hanoi holds the top position in Southeast Asia when it comes to the disparity between housing prices and average income. This gap steadily grew between 2018 and 2021, surpassing even Singapore's difference.
In 2020, the cost of a Singaporean apartment on the primary market was equivalent to 15.4 years of median household income, as stated by Statista, a market research firm. However, in Indonesia, Malaysia, and Thailand, this gap appears to be narrowing.
A study from NetCredit, a platform by U.S. tech company Enova International, revealed that the price of a house in Hanoi equates to 45 years of average income. This places Hanoi among the most challenging capital cities globally for purchasing housing.
According to Do Thi Thu Hang, senior director at Savills Hanoi, the gap between demand and supply remains substantial, resulting in elevated prices. Between 2023 and 2025, Hanoi is projected to gain 157,000 new households, but only 59,000 luxury apartments, 9,000 low-rise houses, and 18,700 social housing units. Consequently, there will be a deficit of 70,300 housing units.
The selling prices of apartments have consistently risen for 18 consecutive quarters, marking a 73% increase from the first quarter of 2019. Savills attributes this trend to the escalation of land prices and construction expenses. Additionally, investments aimed at enhancing property quality, along with the development of surrounding utilities and infrastructure, further contribute to the upward movement of new property prices.
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