Luxury apartment prices soar in Hanoi amid supply shortage
The supply of luxury apartments in central Hanoi is becoming increasingly scarce, pushing starting prices to new highs.
In the first six months of 2017, about US$1.2 billion of FDI capital has been granted to the real estate business sector.
According to Foreign Investment Agency, in the first six months of 2017, about US$1.2 billion of FDI capital has been granted to the real estate business sector. Notably, there have been 39 newly-registered projects with the total authorised capital of US$461.7 million and a charter capital of US$701 million.
Compared to 2016, FDI capital allocated to the real estate business sector has increased by 16%, and there have been 14 more newly-registered projects.
Foreign investors have invested in 18 branches, including the manufacturing and processing sectors, which have attracted a total capital of US$9.48 billion, accounting for 49.3% of the total authorised capital in the first six months.
Electric generation and distribution rank second with the total investment of US$5.25 billion, accounting for 27.34%. Ranking third is mining industry, invested US$1.28 billion, comprising 6.68% of the total authorised capital.
Additionally, as of June 20th, 2017, there have been 23,594 ongoing FDI projects with the total authorised capital of US$306.3 billion. The accumulated capital of foreign-funded projects is estimated at US$162.57 billion, comprising 53% of the total authorised capital.
Foreign investors have allocated their capital in 19/21 branches in the Vietnamese system of economic branches. Notably, processing industry sector accounted for the largest proportion (58.98%) of the total capital, equal to US$180.68 billion. Next, real estate business sector took up US$50.99 billion (equal to 16.6%) and electricity – water – gas generation and distribution received US$18.83 billion (equal to 6.14%).
The supply of luxury apartments in central Hanoi is becoming increasingly scarce, pushing starting prices to new highs.
Vietnam's hospitality industry is undergoing a major transformation with a brand repositioning strategy that emphasizes unique, sustainable, and community-focused experiences.
High demand and limited supply drive transactions in major urban areas despite soaring costs.
Despite the real estate market's lackluster performance, several companies are accelerating land acquisition efforts.
Hanoi is set to receive a significant future supply of over 100,000 apartments starting from 2025, a tenfold increase compared to the current availability.
Hanoi’s apartment prices are expected to continue rising until supply and legal bottlenecks are resolved, according to experts.