Mr. Tran Van Nhan (from Ha Nam) shared that more than a week ago, a broker took him to see a newly built 5-storey house in an alley on Minh Khai Street (Hai Ba Trung District, Hanoi).
The house has an area of 30 m2, has basic interior finishing, located in a 3.5 meter wide alley, the alley is open, cars can pass the house. The location of the house is quite airy and can open a small business.
It seemed like a reasonable choice after many days of hard work looking for a house for Mr. Nhan and his wife. However, when the broker revealed the selling price, Mr. Nhan had to give up because the price was even higher than a house on the street.
Accordingly, the house is being sold by the owner for 9.5 billion VND, equivalent to nearly 320 million VND/m2.
" I was shocked when I heard the selling price of this house. The price of a house on Minh Khai street is currently only 300 - 400 million VND/m2, a house in an alley has the same price as a house on the street ," Mr. Nhan shared.
Houses on Nam Du street frontage are currently being sold for only around 150 million VND/m2, but houses on alley frontage in the same area are priced at 183 million VND/m3. (Screenshot).
Nowadays, many houses in alleys are being sold at higher prices than houses on the street, appearing more and more in the Hanoi real estate market.
In a group specializing in buying and selling residential real estate, a house with an area of 31m2, 4.5 floors, located in lane 47 Nam Du (Linh Nam, Hoang Mai) is currently being advertised for sale at a price of 5.7 billion VND, equivalent to about 183 million VND/m2.
Meanwhile, the price of houses on Nam Du street is currently only about 150 million VND/m2.
Or another house in Vinh Hung alley with an area of 30m2, a car-avoiding alley, is for sale for 6.5 billion VND, equivalent to 216 million VND/m2, also as expensive as the selling price of a street-front house in this area.
According to Mr. Ha Ngoc Hung (a long-time broker in Hanoi), since the beginning of this year, house prices in alleys in some districts of Hoang Mai, Hai Ba Trung and Thanh Tri have increased by 5-10% compared to 2023.
However, it is unreasonable that the price of houses on the alley is as high as or higher than that of houses on the street. Because houses on the alley can only be used for small businesses and traffic cannot be as convenient as those on the main streets.
Mr. Hung analyzed that in residential land transactions, the most important factor determining the value of a house is location. Therefore, houses facing the street, alley, and side are all classified, with clear differences in price. A large, beautiful house with full interior cannot be as expensive as land facing the street, let alone a house facing the street.
" I think the alley-front houses are listed for sale at higher prices than street-front houses because the owners or investors don't really need money and want to sell. They are just advertising to test the market to see how "high" it is. If there are buyers, they will win big, but if there are no buyers, they don't care, " said Mr. Hung.
Many houses in alleys are being sold for more money than houses on the street. (Illustration: Labor)
Sharing the same view, Mr. Giang Anh Tuan - Director of Tuan Anh Real Estate Trading Floor also said that the residential real estate market is showing signs of "heating up" again, so many homeowners and investors have taken advantage to push up prices, stimulating the market to heat up.
This person assessed that compared to mid-year, the number of customers closing to buy houses increased by 50-60%. Many houses were even closed after only 1-2 weeks of being put up for sale. This is a rare situation from mid-2022 to August, September 2024.
One of the reasons why the real estate market is warming up again is because savings interest rates are currently too low, home loan interest rates are also cooling down, so the cash flow is returning to real estate.
According to Mr. Tuan, the transactions of houses and land in alleys are abundant because they meet the real housing needs of families. When apartment prices increase sharply as they are now, the prices of houses and land in alleys have decreased and remained stable, so the trend of choosing this type of house tends to increase again. However, the increase rate exceeding that of houses on the street is unreasonable.
" On the homeowner's side, their mentality is to get as much as possible. Seeing many customers coming to see and quickly closing prices, they inevitably think that the real estate market has become hot again. Therefore, they don't have any reason to sell cheaply. They don't even want to sell, because if they sell, it will be difficult to buy another cheap house for investment ," said Mr. Tuan.
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