Hanoi real estate transactions are bustling despite the Ghost Month
Speaking with Lao Dong, Mr. Tran Duc Khang - Sales Director of Region 2 at OneHousing commented on the recent residential land market in Hanoi.
Accordingly, there are signs that the residential real estate market is quite active, that is, the number of transactions in the Ngau month (7th lunar month) reached 3,300 transactions, only slightly down compared to previous months. This is contrary to the general situation of the "falling point" of the market, usually in the Ngau month every year.
One of the reasons is that people's consumption concept has also changed. Previously, "during the Ghost Month, there was no buying or selling, no big things to do", but now there is a view that the Ghost Month is the Vu Lan month to show filial piety, many people want to own a house, a large asset.
In addition, this year's Ngau month coincides with the time when real estate laws come into effect, new regulations on transfers, land price frameworks according to market prices, regulations restricting land division, land title separation... somewhat affect customers' psychology about the possibility of land prices increasing in the near future, so customers make decisions faster.
In addition, land auctions in the suburbs also took place in the seventh lunar month, leading to a lot of information about price increases, which also had a significant impact on buyers' psychology.
Residential houses continue to increase in price steadily and stably
Mr. Tran Duc Khang - Sales Director of Region 2 at OneHousing said that in recent months, it has been very difficult to find a house worth about 3-4 billion VND in the inner city of Hanoi. For a house in a moderate alley, motorbikes can pass each other, with enough functions, an area of 30m2, 2-3 bedrooms, if calculating the land price alone, it is about more than 100 million VND/m2, plus construction costs, the transaction price will be over 4 billion VND.
Therefore, houses around 3-4 billion, if any, either have feng shui errors (narrow back, dead road), the house is on old land, the owner only wants to sell the land, or the alley is very deep, the alley leading to the house is small...
In the suburbs, houses in alleys are being traded at around 70-80 million VND/m2, even corner lots and nice lots are priced at over 100 million VND/m2.
In terms of area, the East and West are the focus of the Hanoi real estate market. Not only is the apartment segment bustling, residential land transactions in the East and West account for 66% of the Hanoi market in the first 6 months of 2024 - according to data from the OneHousing Center for Market Research and Customer Insights.
In which, the western area (Cau Giay, Nam Tu Liem, Bac Tu Liem, Ha Dong) leads the market with about 1,200 transactions (accounting for 36% of market share).
Next is the eastern area (Gia Lam, Long Bien) with about 1,100 transactions (33% market share). The reason why the western area is bustling with residential land transactions is because it attracts a workforce and jobs almost equivalent to those in inner-city districts, making many people choose to buy houses here for convenience in commuting to work. Meanwhile, the eastern area is increasingly chosen thanks to its developed infrastructure and better living conditions.
According to forecasts from the OneHousing Center for Market Research and Customer Insights, in the last 6 months of 2024, the residential market is expected to record about 23,000 transactions, still mainly concentrated in the East and West regions.
Recently, there has been a lot of conflicting information on the increase in real estate prices. However, we still have to accept the fact that supply is lower than demand, so the transaction price also partly reflects the market situation. Customers with money are still looking for opportunities to invest in real estate because they are afraid that the market will set a new peak.
"According to the general situation of the residential housing market, prices have also increased somewhat, but there is no sign of a sharp increase in a few months, but rather a more steady and stable increase. With residential housing, stopping purchases does not affect the homeowner's ability to reduce prices. The homeowner only reduces prices when they are in dire need of money to invest in something else," said Mr. Tran Duc Khang.
