The reason is assessed as the limited number of projects, while the apartment prices are high but consumers can still "withstand the heat" and that is the real housing need of the people.
High demand, no more cheap apartments
Mr. Dinh Ngoc Cung came from Nam Dinh to work in Hanoi for decades, saved up all kinds of money but could not find a place to "settle down" because of limited money.
He said that his family consists of 2 spouses and an elderly mother, so the rented place (Van Dien, Thanh Tri, Hanoi) with 2 rooms combined into 1, more than 35 square meters wide, is still very cramped, no longer suitable and about 16 km from his workplace (Ba Dinh district).
With savings and loans of about 2 billion VND, after a long time of wondering whether to buy a house or an apartment, at the end of September, Mr. Dinh Ngoc Cuong decided to choose to buy an apartment.
The limited number of apartment projects and high demand have led to a large number of buyers (Illustration photo).
However, after more than 2 months of intensive hunting, he still has not found a satisfactory apartment larger than 70 square meters in the central districts of Hanoi that is suitable for the amount of money he has.
"Apartment prices are currently high, and there are many people looking to buy. New projects near the city center are priced at at least 40 - 50 million VND/m2. Old apartments are also up to 35 million VND/m2. It is impossible to find an apartment at the price of 25 million VND/m2 in Hanoi right now," said Mr. Cuong.
Giving specific examples, Mr. Cuong said, for example, at Tecco Garden apartment building (Thanh Tri), a project located quite far from the center of Hanoi but also has a very high price.
“The price of an apartment with an area of 89 square meters, 3 bedrooms, basic furniture (wooden floor, lighting system, water heater,) is 2.5 billion VND, equivalent to about 28 million VND/square meter. This price is too much compared to my family's financial capacity,” said Mr. Cuong.
A survey of actual apartment prices at some projects in Hanoi shows that while the land market is gloomy, the number of people looking to buy apartments in Hanoi has increased by about 6%, and the number of people looking to rent has also increased by 9%. Along with that, the number of newly built projects in recent times has been almost non-existent, so apartment prices have also been pushed up sky high.
Apartment transactions recover quickly
At the project being completed, Rose Town 79 Ngoc Hoi apartment building, the apartments are designed with an area of 70, 78, 89 and 104 m² and have 2 types of ownership, long-term and 50-year term. The number of people coming to learn and trade on weekends is also quite active.
A broker of this project said that the current price of a long-term apartment is over 40 million VND/m2, an apartment with a 50-year usage period from the date of approval and land allocation for the project, currently with more than 30 years left, the price is 28 million VND/m2, the cheapest in the area.
The number of people looking to buy apartments has increased in recent months (Illustration photo).
Research on some apartment buildings and apartment projects in Hoang Mai district such as Phuong Dong Green Park, Dong Phat Park View, North South, Feliz home shows that the prices of these apartments range from 40 - 45 million VND/m2. Further apartments such as Tan Tay Do (Dan Phuong) which has been built and put into operation for many years are also being advertised for sale at nearly 30 million VND/m2.
Mr. Tran Hai Nam, a real estate broker in Hanoi, said that he used to work in the townhouse and land segment. However, the real estate market is sluggish, and there are few transactions in these segments, so he switched to selling apartments that meet real housing needs.
"In recent months, while other brokers have had few or no transactions in the land and townhouse segment, I have still made a good living selling apartments. People's demand is always high and they are interested in projects with reputable investors. In addition, the old apartment segment is currently the choice of many young families. Now is a good time, so many people are looking to buy a house," said Mr. Nam.
Mr. Nguyen Van Dinh - Chairman of the Real Estate Brokerage Association said that recently the rate of successful transactions of apartments has shown signs of improvement. This is also a type of property that is expected to recover well from now until the end of the year.
The selling price of apartments has also increased significantly in some products and areas recently. Compared to the first and second quarters of 2023, the selling price of apartments in Hanoi in the third and fourth quarters of 2023 increased by an average of 4-7%.
In addition, the average profit rate when investing in apartments is up to 12.5%/year (combining price increase and rental profit). This is a better and more stable profit rate than other types of investment such as stocks, gold, foreign currency, land, savings, etc.
“Apartment prices and transaction volume are recovering in the fourth quarter of 2023. This type will recover strongly in the first 6 months of 2024. In general, this is the type that is forecast to lead the recovery trend of real estate in the coming time,” said Mr. Dinh.
PHAM DUY
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