Are Hanoi apartments and townhouses really hot or just a virtual fever?

After nearly 2 years of gloom, recently, the market for apartments and houses in alleys and deep lanes in Hanoi's inner city districts has suddenly heated up again.

Demand is skyrocketing.

Mr. Le Van - a real estate broker in central districts of Hanoi such as Hai Ba Trung, Dong Da, Hoan Kiem - said he had just received a deposit from a customer to buy a 3-storey private house in Kham Thien area (Dong Da district) for 3.2 billion VND, area 30 m2. The house is located in a small alley just wide enough for 2 motorbikes to pass each other.

Some other brokers also confirmed that recently many people have been looking to buy houses in alleys in Hanoi's inner city districts, but after a long wait, apartment prices have not decreased. Ms. Thu Quynh (living in Cau Giay district) said that instead of spending money to buy a new apartment in Tay Mo area, Nam Tu Liem with a price of up to 4 billion VND, her family decided to buy a house in a deep alley in Hai Ba Trung district, with an area of ​​28 square meters, priced at 3.5 billion VND.

"The residential land in the alley has some inconveniences such as cars having difficulty getting in and has been built for many years. However, in return, the location is in the inner city, so it is quite convenient for the family to go to work and pick up the children from school," said Ms. Quynh.

Both hot in terms of interest, houses in alleys are booked faster than apartments

Speaking to a reporter from Nguoi Lao Dong Newspaper, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, cited a statistical result showing that the demand for searching for residential land in Hanoi tends to increase again. In February 2024, the number of searches for this segment increased by 19.7% compared to January 2024 and focused on houses priced from 2-5 billion VND in the inner city area.

Unsold apartments due to continuous price increases

Along with residential houses, the apartment segment in Hanoi has also received the attention of many people in the context of increasingly low savings interest rates and many banks launching preferential loan packages for home purchases. However, the situation of apartment transactions has surprised many people. Mr. DTV, a real estate broker at Phu Tai Land trading floor, said that the continuous increase in apartment prices has made customers hesitant. "There are quite a lot of customers asking to buy apartments, but every time we sell a few apartments, the investor increases the price, affecting transactions," said Mr. V.

Similarly, Mr. Thang, an apartment broker in Hanoi, also complained that since Tet, he has only brokered 2 apartments despite many inquiries. "There are many customers coming to inquire but few buying. Many customers want to buy a house to live in but do not have enough money because apartment prices are too high. Therefore, they are waiting to see if the price will cool down in the near future" - this broker informed.

A representative of a notary office in Bac Tu Liem district said that on average, the unit notarizes about 5 real estate purchase and sale documents per day, of which only about 1-2 are apartments. "The market is not as vibrant as rumored," said a notary.

According to the Vietnam Association of Realtors, apartment prices in Hanoi have been continuously increasing in both the primary and secondary markets. Meanwhile, apartment prices in Ho Chi Minh City have also begun to enter a cycle of price increases again. The main reason is that project supply is still scarce, while demand has begun to increase again.

Economist - Associate Professor - Dr. Dinh Trong Thinh said that when the price of apartments is too expensive, customers will inevitably switch to other segments that suit their budget. "If we compare buying an apartment for 60-70 million VND/m2 but it is still not as expected, consumers will choose to buy a townhouse with the same price, even though it is located deep in the alley, but the floor area can be larger and the traffic is much more convenient" - Mr. Thinh cited.

However, experts believe that buying residential land is not without risks. The Deputy General Director of Batdongsan.com.vn advises that home buyers should spend time surveying and finding information about the area where the house is located, observing the traffic conditions when it is crowded and empty, and whether it is flooded during heavy rains or not... In particular, they must carefully research the legality, planning, and disputes...

Data from Batdongsan.com.vn shows that the price of residential land per square meter in Hanoi ranges from 85 - 156 million VND/m2, the average price is 115 million VND/m2 (excluding tax). Over the past year (data from March 2023 to February 2024), this price increased by 7.4% compared to the same period a year earlier.

Source: https://nld.com.vn/chung-cu-nha-pho-ha-noi-nong-that-hay-sot-ao-196240325210913258.htm