Ms. Nguyen Thi Thom (36 years old, Ha Dong, Hanoi) and her husband bought an apartment in Van Phu (Ha Dong, Hanoi) in 2020 for about 1.8 billion VND, equivalent to nearly 26 million VND/m2. The 70m2 apartment includes 2 bedrooms, 1 living room, 1 toilet. Observing from the beginning of the year, seeing that apartment prices are always hot and are being offered by many brokers, Ms. Thom and her husband did not sell.
"The price of apartments in the area where I live has increased to 45-50 million VND/m2. My apartment was offered for 3.2 billion VND, but because I want to settle down, I won't sell it," said Ms. Thom.
In 2019, after her daughter passed the university entrance exam in Hanoi, Ms. Nguyen Thi Huong (Dong Trieu, Quang Ninh) decided to buy an apartment for her daughter's convenience in living and studying. At that time, the apartment was for sale for nearly 3.2 billion VND at Thanh Xuan Complex (Thanh Xuan, Hanoi). This apartment is 91 square meters wide and has 2 bedrooms. After nearly 5 years, Ms. Huong's apartment has increased in price by billions of VND.
"The broker offered to buy this apartment for more than 5 billion VND, but I didn't sell it because I bought it for my children to live in and had no intention of investing," said Ms. Huong.
According to the latest data from CBRE, the Hanoi apartment market in the third quarter of 2024 continued to record a large new supply, reaching approximately 8,230 units, nearly equal to the new supply of the previous quarter.
Of these, only 2 projects have an asking price of around 50 - 60 million VND/m2, the remaining projects all recorded an average primary price of over 60 million VND/m2 (excluding VAT and maintenance fees). In addition, the selling price of apartments in Hanoi continues to record an upward trend in both the primary and secondary markets.
According to Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association - the primary selling price of apartments in Hanoi will continue to increase because although supply has improved, it is still difficult to meet demand.
According to this expert, most of the new supply continues to be completed at a high standard with high investment costs, especially land-related costs. Therefore, it is difficult for the primary price level to decrease. The increase in primary prices has led to an increase in the selling price of Hanoi apartments in the secondary market.
"If Hanoi apartments in particular and other residential real estate segments continue to increase in price, it will cause great instability in the long term for the market. This situation of increasing real estate prices, if not intervened soon, will cause much instability for both the market and society. Management agencies need to soon take measures to clear the way for the affordable commercial housing and social housing segments," Mr. Dinh recommended.
In addition, investors need to promote research and product development in line with trends and affordability of the majority of people, limiting the situation of shifting to high-end, luxury products.
