According to experts, waiting for apartment prices to decrease is very unlikely because supply cannot improve quickly. That is also the reason why new projects about to be launched are considered a “cooling rain” for the market.
New inner city products are still "hot"
In fact, the price increase fever is no longer discussed as hotly as before, but the price of inner-city apartments is still quietly increasing, even though there was an increase of several dozen percent in a short period of time.
According to market observers, the scarcity of new apartment projects in Hanoi is the main reason why this segment is becoming increasingly “hot” in the primary and secondary markets. Each new project about to be launched is likened to a “cooling shower” for the market.
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| The Sola Park is expected to become the focus of the Western real estate market when the inner-city apartment fund is scarce. |
For example, the newest subdivision under construction in the western metropolis of Hanoi, The Sola Park, developed by MIK Group, is attracting the attention of many homebuyers and investors. With a prime location at the gateway to the metropolis, the apartments at The Sola Park all have a "just right" area for the housing needs of young families, with a suitable total value for each apartment. That is also the reason why The Sola Park has received the attention of many customers and investors since its launch.
In addition to The Sola Park, existing projects around it have also recorded continuous price increases. At the same time, transferred apartments are always sought after. For example, apartments at The Mirae Park by MIK Group have been put into operation before, the price of houses here has increased by nearly 20% since the handover. Finding a satisfactory apartment in this subdivision is not easy because as soon as any owner posts an ad for sale in the internal group, there will immediately be someone to buy it.
Hard to dream of a discount
According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), in 2023, the total supply of new apartments in Hanoi will reach approximately 11,000 products, equal to 66% compared to 2022. The downward trend will continue in the first quarter of 2024, when the entire market will only record about 3,000 newly opened apartments. Thus, from now until 2025, Hanoi will lack about 50,000 apartments.
The inevitable consequence of this scarcity has led to a prolonged price fever in the Hanoi apartment market. A recent report by CBRE said that the average price for a new apartment in Hanoi in the first quarter of 2024 increased by 19% compared to the same period last year. However, in reality, the increase is much higher.
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| Apartment prices are expected to continue to increase in the coming time. |
Currently, the issue that many customers and investors are concerned about is whether they should spend money to buy an apartment or not? Commenting on this story, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, said that consumers should clearly define their purpose. Customers who buy to live should make a transaction as soon as their finances allow to meet the practical needs of settling down.
Therefore, according to Mr. Nguyen Quoc Anh's analysis: "Waiting for apartment prices to drop sharply is very unlikely at this time because supply cannot improve quickly. In the near future, when the Real Estate Business Law 2023 takes effect (expected from August 1, 2024, 5 months earlier than the original plan), the number of investors meeting the requirements to implement the project will decrease further. Meanwhile, the demand for home ownership is constantly increasing, especially in large cities."
In fact, apartments are still the “perfect choice” for urban residents for many reasons. Mr. Tuan, a real estate broker, said that although apartment prices have increased, they have not been as high as the increase in house prices in alleys in Hanoi in recent times. According to this broker, many 3-5-storey houses, old houses, in alleys, with an area of only about 28-35 m2 are being advertised for sale at 5-6 billion VND/unit, an increase of more than 1 billion VND/unit compared to 2023 and about 2 billion VND/unit compared to 2-3 years ago.
According to the market report of Batdongsan.com.vn, in the same period from the first quarter of 2023 to the second quarter of 2024, the apartment type in Hanoi had a price increase of 31%, but the price of individual houses had an even "huge" increase of 32% and residential land was not far behind with an increase of 19%. Meanwhile, the demand for buying apartments is much higher, which is also the reason why apartment projects in the city center have been and will continue to be as expensive as hot cakes.
At the same time, according to data from Batdongsan.com.vn, the selling price of apartments in Hanoi, although increasing rapidly recently, is still the lowest compared to major cities in the world. For example, in Singapore, the price of an apartment is 415 million VND/m2, in Hong Kong 645 million VND/m2, in Tokyo 215 million VND/m2, Bangkok 162 million VND/m2. Therefore, many market observers believe that the demand for apartments in major cities such as Hanoi, Ho Chi Minh City... in the near future will come from foreigners, especially in large projects that have formed "United Nations residential areas".
According to Mr. Nguyen Quoc Anh: “It is very difficult to find the bottom or the top of apartment prices. Buyers and investors should clearly identify their needs, monitor the market situation and make decisions when their needs are met. Besides price, it is also necessary to study other important factors such as investor reputation, location and amenities to serve their lives well or ensure liquidity and effective rental”.
Source: https://baodautu.vn/batdongsan/vi-sao-chung-cu-noi-do-van-chua-the-giam-nhiet-d218226.html
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