Single-family home prices rise sharply
According to Kinh te & Do thi , in the context of limited supply, the price of primary apartments in Hanoi is "anchored" high, newly opened projects are all priced in the high-end segment. While secondary apartments priced around 3 billion VND/unit are only available in districts far from the center, are also being sought after and are increasingly scarce; a private house priced around 4 billion VND with an area of 30 - 40 m2 becomes an attractive choice for many families wishing to settle down.
Notably, the price increase is also driven by investment demand. Accordingly, houses in alleys are considered to be a type of property with good liquidity, complete legal documents, and affordable prices. They bring high rental yields in the context of increasing demand for renting and buying houses for living. In particular, the demand for renting retail space in small alleys has also maintained an upward trend in recent times, as small and medium-sized enterprises plan to reduce the burden of costs, given the fact that revenue mainly comes from e-commerce platforms.
Statistics from batdongsan.com.vn show that the level of interest and transactions in Private Houses in Hanoi gradually improved in the first quarter of 2024. In particular, the level of interest improved significantly in some suburban districts when there were not many options left in central districts.
Market research data from the Vietnam Association of Realtors (VARS) shows that the price of individual houses being traded has increased by 5-15% compared to the end of 2023. Although the price increase here still has many unusual signs, it cannot be denied that the large amount of interest and transactions are real. Notably, in the first quarter of 2024, some real estate brokerage businesses recorded the highest number of individual house transactions in the past 5 years.
Private houses in alleys in Hanoi continue to increase in price. Illustrative photo from the internet
“The real estate market for individual houses is forming a new price level, when the supply continues to not adapt to the needs of investors and residents - especially in the current increasingly obvious urbanization trend. Therefore, housing prices in the inner city will hardly decrease, people with real housing needs should consider putting money down to buy a house if they find a product that suits their financial capacity, which means not borrowing too much” - Vice Chairman of VARS Nguyen Chi Thanh said.
According to the VARS representative, through monitoring the history of price increases in the market, it can be seen that, like the apartment segment, the price of residential land in Hanoi also recorded a similar increase at the end of 2021. By mid-2022, when the market was difficult, the price of this type decreased but was not "insignificant" compared to the increase, and now it has continued to increase again. Because this is a type that always maintains a fairly stable level of interest even in gloomy periods.
Strong enough policies are needed to develop social housing in urban areas.
According to Tuoi Tre , VARS believes that housing prices in the inner city will hardly decrease, so people with real housing needs should consider putting money down to buy a house if they find a product that suits their financial ability, meaning not to borrow too much.
The history of price increases shows that like the apartment segment, Hanoi residential land prices also recorded a similar increase at the end of 2021.
By mid-2022, when the market was difficult, the price of this type of property decreased but was "insignificant" compared to the increase and has continued to increase again. Because this is a type of property that always maintains a fairly stable level of interest even in gloomy times.
Besides small-area individual houses, apartment buildings in alleys are also "heating up" again as the number of people renting and looking to buy mini apartments gradually recovers.
Along with individual houses, "apartments" in narrow alleys are causing pressure on urban overload, infrastructure and public utilities, along with many risks related to fire and explosion.
Dao Vu (Synthesis)
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