Worrying about buying an inner-city apartment or a suburban land plot
After more than 15 years of working in Hanoi, Mr. and Mrs. Nguyen Duc Huy (39 years old, from Thai Binh ward, Hung Yen province) have accumulated about 5 billion VND and started planning to buy a house.
Initially, Mr. Huy intended to buy a house and land plot. However, after many months of market surveying, he found that houses suitable for financial capacity are mainly located in areas far from the center such as Dong Anh, Hoai Duc or Gia Lam.
My husband and I both work in the Cau Giay area. If we buy a house and land within our financial capacity, the road to work will be very far. Finally, we decided to buy an apartment of about 60m2 in the Nam Tu Liem area for convenient living" - Mr. Huy shared.
According to Mr. Huy, the current apartment price is not cheap at all, but in return, the family can move in immediately, children can study near the house and do not incur additional repair costs.
5 billion VND is no longer too much money if you want to buy a house in Hanoi. But for my family, real housing needs are more important than investment stories" - he said.
Unlike Mr. Huy's choice, Ms. Tran Thu Ha (43 years old, Ha Dong, Hanoi) decided to use all her accumulated money of about 5 billion VND to buy houses and land in the suburban area.
Ms. Ha said that she had considered buying an apartment in the inner city, but after consulting many projects, she realized that the apartment area suitable for the budget is increasingly narrowing.
If I spend 5 billion VND to buy an apartment, I will only own an apartment of about 50-60m2. Meanwhile, with the equivalent amount of money, I can buy a more spacious house in the suburban area," Ms. Ha said.
According to Ms. Ha, although having to accept a further distance from the center, land and houses are still the type prioritized by families thanks to long-term use rights and expectations of price increases in the future.
I decided to keep assets for a long time, so I prioritize real estate. Accepting to go a little further but feeling more secure," she shared.
Housing prices increase, homebuyers have to calculate more
Mr. Le Huy, a real estate broker in Hanoi, said that the problem for people with 5 billion VND is now much more difficult than a few years ago when real estate prices continuously increased sharply.
According to Mr. Le Huy, apartment prices in Hanoi are currently commonly from 90-120 million VND/m2, many new projects have exceeded the 100 million VND/m2 mark. With a budget of about 5 billion VND, buyers can choose apartments with an area of 50-70m2 in inner city districts or near-central areas, meeting relatively well the living needs of families.
Meanwhile, real estate is no longer an easy option to access as before. In many suburban areas such as Dong Anh, Gia Lam, Hoai Duc or Ha Dong, the price level has increased sharply in recent years. With an amount of about 5 billion VND, buyers mainly find houses located in alleys, with moderate area or in locations far from major traffic axes. Houses facing roads, wide alleys where cars avoid each other or located near new central areas often have significantly higher prices.
Many people think that 5 billion VND is a fairly comfortable financial level when looking to buy suburban houses and land. However, in reality, this amount is no longer too abundant. Therefore, buyers need to consider the advantages of location, amenities and convenience in living of apartments with the expectation of owning assets attached to land when choosing houses and land" - Mr. Le Huy said.
According to experts, choosing inner-city apartments or suburban land is also associated with the purpose of use and expectations about the value of assets in the future.
Mr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS) said that apartments will continue to play a leading role in supply and liquidity of the market in the coming time thanks to meeting the actual housing needs in large cities. Meanwhile, land plots and detached houses in areas with synchronous infrastructure investment are still segments that attract cash flow thanks to long-term price increase potential.
According to Mr. Dinh, investment cash flow is tending to shift strongly to the suburban area, where the price level still has room for growth. However, the market is increasingly clearly differentiated. Investors and buyers will prioritize projects with complete legal status, convenient connecting infrastructure and meeting real housing needs.
Experts also noted that not all suburban areas have the potential to increase prices as expected. Some areas may face low liquidity if infrastructure is slow to deploy or supply development is not synchronized.
