Hanoi real estate prices continue to soar, should we invest?

Giving advice, Mr. Le Dinh Chung, a member of the market working group of the Vietnam Real Estate Brokers Association, said that if you want to invest in Hanoi real estate at the present time, you need to have a medium-term vision, with a capital recovery period of at least 1 to 3 years, instead of expecting a quick "surf".

For example, in the land segment, the land price in the suburbs of Hanoi is currently high, with many potential risks. Therefore, if you want to invest, you should choose areas with synchronous infrastructure, good economic development but land prices have not increased too much in recent times.

" Some investors have started their journey to buy land in some areas where prices have not increased sharply. These people are tending to be proactive, because according to the current Real Estate Business Law 2023, it is not allowed to divide and sell land in 105 cities and towns across the country ," Mr. Chung cited.

However, Mr. Chung advised investors not to "put all their eggs in one basket", that is, buy in large quantities. At the same time, they should choose projects with clear legal status, attractive value or areas with full amenities.

Should we invest in Hanoi's rapidly increasing real estate market? (Illustration: Minh Duc).

According to Mr. Giang Anh Tuan, Director of Tuan Anh Real Estate, when Hanoi real estate prices are rising as high as they are now, investors should not participate in the market. " You should only participate in the market when prices are low, but you should not buy because prices are high and can still be higher, especially in an unclear context like the present ," Mr. Tuan stated his opinion.

In addition, if you don't have a lot of money, investors need to carefully observe the market, especially not rushing into hot spots such as auctioned land with prices ranging from 140 million VND/m2 to more than 200 million VND/m2.

Sharing the same view, Mr. Nguyen Anh Que, Executive Committee Member of Vietnam Real Estate Association, Chairman of G6 Group, also said that investors should be cautious when investing in Hanoi real estate at this time. Recently, many investors have withdrawn their money from the provinces and switched to investing in real estate segments in Hanoi such as apartments, houses in alleys, townhouses, villas and suburban land, causing this market to heat up.

Sharing his opinion at the workshop "Cash flow into real estate in the South: Identifying investment opportunities", economic expert Dinh Trong Thinh said that at the present time, to invest in real estate in any area, it is necessary to consider many factors. Specifically, in the North, it is necessary to study the supply and demand factors when the market has had a relatively high price increase since the beginning of the year. Accordingly, investors need to consider the demand and factors affecting the market, and consider when prices increase sharply.

Meanwhile, the southern region such as Ho Chi Minh City and provinces such as Binh Duong, Long An, Dong Nai... are creating great opportunities for investors. The southern localities with the determination to develop the socio-economy in the coming period will have a great impact on the development of residential real estate and industrial real estate. In this context, the opportunity to invest in southern real estate such as Binh Duong or neighboring provinces of Ho Chi Minh City is very large.

Mr. Nguyen Van Dinh, Chairman of the Real Estate Brokerage Association, acknowledged that the two markets of Hanoi and Ho Chi Minh City have almost no differences in terms of trading activities, institutions, planning, and demand. However, in the Hanoi market, in addition to housing demand, investment demand is also very large, the investment nature of the Hanoi market is quite strong. Meanwhile, in the Ho Chi Minh City area and surrounding areas, housing demand is more dominant.

Hanoi real estate prices "skyrocket"

Apartment prices in Hanoi have been increasing continuously since the fourth quarter of 2023. In particular, there are projects being advertised for sale at prices of nearly 100 million VND/m2.

According to the regular report of the Ministry of Construction, in Hanoi, apartment prices in the third quarter continued to climb in both new and old projects. Accordingly, the price level of new projects increased by 6% quarter-on-quarter and 28% year-on-year, reaching VND69 million/m2. The high increase in primary projects also pushed the selling price of old apartments to VND51 million/m2, up 10% quarter-on-quarter and 41% year-on-year.

Many apartment projects in Hanoi have prices ranging from 60-100 million VND/m2. For example, some projects such as Viha Complex (Thanh Xuan district), apartments are currently being offered for sale from 75 - 97.2 million VND/m2. The Green Diamond 93 Lang Ha project (Dong Da district) is being offered for sale at 90.5 - 125.7 million VND/m2. Apartment prices here have increased by 30.9% over the past year.

Even old apartment projects that have been in use for many years and are seriously degraded are being offered for sale at very high prices. Specifically, the Nam Trung Yen resettlement project (Cau Giay district) is being offered for sale at a price of more than 70 million VND/m2…

According to analysts, the recent increase in housing prices has two reasons. One is that land prices are in the trend of adjusting market prices, so all areas, land auctioned, bid, and land converted in the inner city have increased in price. Recently, land in Ha Dong (Hanoi) has reached 260 million VND/m2 or in some suburban areas, the selling price has reached several hundred million VND/m2.

The second reason is that supply and demand for apartments are still skewed, there are not many options for people to choose from, leading to a gap between supply and demand.

The sharp increase in apartment prices has also pushed up the prices of villas and townhouses in Hanoi. According to a report by the Department of Housing and Real Estate Market Management (Ministry of Construction), at the end of the third quarter, the prices of villas and townhouses in Hanoi all tended to increase sharply by 7-10% compared to the second quarter.

According to a report by CBRE Vietnam, the first 9 months of the year witnessed an explosion in the townhouse segment (townhouses, villas) with a total supply of more than 3,500 units, the highest in the past 5 years.

Transaction volume in this segment also increased strongly, especially in the third quarter, with more than 2,500 units sold, nearly 5 times higher than the previous quarter. The average primary selling price in the quarter reached VND235 million/m2, up 16% quarter-on-quarter and nearly 27% year-on-year.

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