Mr. Tran Van Duc (in Thanh Xuan, Hanoi) has been planning to buy an apartment since last year to get married. However, with a budget of 3 billion VND, it is very difficult for Mr. Duc to find and buy an apartment in Hanoi's inner city.
Facing the situation of apartment prices continuously increasing, Mr. Duc is looking for a replacement in the residential housing segment. According to Mr. Duc, each residential house usually has an area of about 30-38m2, the financial level is quite suitable.
At the end of July, Mr. Duc closed a level 4 house, fully furnished in Phu Do ward, Nam Tu Liem district with an area of 31m2 for 3.7 billion VND, equivalent to 119 million VND/m2. "Even though the price of residential land increased, the total financial level was at a level suitable for me personally, so I accepted" - Mr. Duc added.
Batdongsan.com.vn's report for the second quarter of 2024 also shows that the Hanoi real estate market recorded the strongest fluctuations in the type of land for sale. Accordingly, searches for land for sale (land, residential) in the first 6 months of the year increased by 118% compared to the same period in 2023.
Residential real estate prices also increased by 32% over the same period. The reason is said to be due to rising apartment prices and scarce supply, causing many people to switch to looking for private houses in the same price range of 2-4 billion VND, pushing up selling prices in this segment.
Dr. Nguyen Van Dinh - Chairman of the Vietnam Association of Real Estate Brokers (VARS) - said that partly due to the high price of the apartment market, it has pushed a group of home buyers to change direction.
Although residential houses have high prices, they have small areas so they are quite suitable for many people's finances. In particular, the advantage of residential real estate is that it is located near the center.
Meanwhile, Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club - stated his opinion that residential real estate is often the segment that real estate buyers consider considering new apartments.
However, recently, apartment prices have increased dramatically in both the primary and secondary markets, prompting customers to shift their search for real estate.
Many buyers accept the inconveniences and limitations of the alley house segment such as parking space and construction quality instead of deciding to buy an expensive apartment.
Recognizing the fluctuations in the apartment market, SGOHomes General Director Le Dinh Chung said that the Hanoi apartment segment is experiencing a sudden increase in prices, with an average price of about 60 million VND/m2. This is a market trend, not a virtual fever.
Besides apartments, other segments also increased sharply in price. Currently, residential housing in the suburbs of Hanoi is about over 100 million VND/m2. Houses in alleys in the center range from 140 - 160 million VND/m2.
