Apartment prices cool down
After reaching its peak last April, apartment prices have shown signs of cooling down. According to a survey by Dan Tri reporters, the selling prices of many used apartments in Hanoi have decreased by 200 to 500 million VND.
An old apartment in Thanh Xuan (Hanoi) with an area of 64 square meters and 2 bedrooms was advertised for sale in May for 4.7 billion VND, equivalent to 73.4 million VND/square meter, but has now been reduced to 4.3 billion VND.
Or another apartment in My Dinh (Nam Tu Liem, Hanoi) with an area of 60m2 and 2 bedrooms was advertised for sale in May for 3.1 billion VND, now the owner has reduced the price to 2.75 billion VND.
Some homeowners who have been advertising high prices for a long time and have had difficulty selling have "given in" and invited back old customers. Mr. Pham Cuong, who lives in Nam Tu Liem, Hanoi, said that at the end of March, her family went to see many used apartments, but had to refuse to buy them because the prices were too high and the quality was not commensurate. After more than 2 months of searching without results, her family temporarily put their plans to buy a house on hold.
However, by mid-August, brokers continuously contacted her to re-offer the houses she had seen at prices 200 to 300 million VND lower. For example, a 60m2 apartment with 2 bedrooms in Tay Mo (Nam Tu Liem) was offered for sale at 3.2 billion VND in April. But now the owner wants to sell early at 2.9 billion VND, a 300 million VND reduction compared to last April.
Mr. Cuong said that the house prices have cooled down a bit but not significantly compared to the increase. Therefore, his family will continue to monitor and if they decrease further, they will put down money to buy.
Ms. TV (Cau Giay, Hanoi) shared that before, her family lived in a 72m2 apartment with 2 bedrooms in Cau Giay district. At the end of last year, her family planned to move house so they decided to buy another house.
Some homeowners have agreed to lower prices to sell their apartments (Photo: Tran Khang).
Around May, because she did not use the apartment, she put it up for sale. At that time, brokers offered a different price every day, with someone offering up to 5 billion VND for the apartment, but she still did not sell because she thought the price would continue to increase. In July, seeing the market cool down, she contacted brokers again, but they said she needed to reduce the price by 5-7% compared to April to make it easier to sell.
Buyer psychology in a waiting state
Mr. Thanh Tung - owner of a brokerage in Hanoi - also admitted that the current apartment prices have been slightly adjusted compared to May. Currently, liquidity is also slower than at the end of last year and the beginning of this year. Some people have temporarily put their plans to buy a house on hold to wait and see. Currently, some apartment owners who want to sell will have to accept a price reduction of 200 to 300 million VND compared to the beginning of the year to find buyers.
According to the Ministry of Construction, in recent times, apartment prices have increased not only in newly opened projects but also in many old apartments that have been used for many years. However, this situation only occurred for a short period of time, and at the same time, there were signs of slowing down at the end of the second quarter due to high prices and buyers' psychology in a wait-and-see mode.
Real estate expert Nguyen Quoc Anh said that the level of interest in apartments peaked in August 2023 and then slowed down, and at the beginning of this year it started to increase very strongly, approaching the peak of August 2023. However, from March this year onwards, the level of interest decreased. Up to now, the level of interest has decreased by 40% compared to the peak in March.
According to him, this signal is very normal, in any investment market there is an upward trend and a downward trend, even sideways. When the amount of interest increases sharply, a large number of sellers arise, leading to a decrease in the amount of interest in apartments.
Mr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS) - said that the increase in apartment prices in Hanoi due to scarcity is an effect of the law of supply and demand. Although the increase in prices shows signs of impact, creating confusing information from speculators creating virtual supply and demand to push up prices in the resale market. However, in reality, it is difficult to identify and handle speculative behavior and inflate apartment prices.
In the context of "congested" supply, individuals and businesses with goods will have an advantage in raising prices. It is inevitable that sellers will raise prices when apartments or any goods are scarce on the market. He said that the price of apartments in Hanoi will have an adjustment point, but not much.
Source: https://dantri.com.vn/bat-dong-san/chung-cu-ha-noi-ha-nhiet-chu-nha-chao-lai-khach-cu-20240822143451805.htm
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