Mr. Nguyen Minh Tuan (27 years old, from Nam Dinh) is married and has a small child. He is currently working at a private company in Hanoi. Mr. Tuan's wife is an office worker. Although both have stable jobs, their income is not too high. With the desire to have a stable life with his small family, Mr. Tuan always dreams of buying a house in Hanoi.
However, recently, real estate prices, especially private houses in Hanoi, have increased sharply. This has made Mr. Tuan's dream of buying a house more difficult than ever. He regularly follows information about private houses and houses in alleys in Hanoi, looking for areas with reasonable prices, but all are beyond his family's financial capacity.
According to PropertyGuru Vietnam's real estate market data for the third quarter of 2024, private houses are a segment with remarkable price growth in recent years. Compared to the first quarter of 2021, the average private house price in the Northern region has increased from an average of VND95 million/m2 to VND173 million/m2.
Data from this unit shows that in the Hanoi area, the type of private houses and townhouses tends to increase in transaction volume and interest in all price ranges. In particular, the interest level has increased sharply in almost all districts of Hanoi.
Compared to the beginning of 2023, the level of interest in private houses in Nam Tu Liem district increased by 43%, private houses in Hoang Mai increased by 28%, Dong Da increased by 21%, Ha Dong increased by 26%, Thanh Xuan increased by 12%. In terms of price, private house prices in Hanoi increased from an average of 95 million VND/m2 in the first quarter of 2021 to 164 million VND/m2 in the second quarter of 2024. Thus, the average price increase rate of private houses is quite stable, reaching an average of 15-20% per year depending on the area.
According to a survey by PropertyGuru Vietnam, Hanoi's private house prices have been continuously increasing over the past two years. In 2023, the transaction volume and consumer interest will be concentrated mainly in the Hanoi private house segment with prices below VND4 billion/unit. The Hanoi private house segment from VND5 billion and above will have a much slower transaction volume.
Up to now, the popular price range has reached 5-6 billion VND/unit - this is the highest price range with the best transaction. Private houses priced from 7-8 billion VND/unit have slower transaction rates.
According to brokers specializing in this segment, the number of customers looking to buy private houses is increasing by 40-50% compared to the previous quarter. Market liquidity is also proportional to the number of customers looking to buy private houses in Hanoi.
Mr. Nguyen Ngoc Thang - a real estate broker in Hanoi said - besides the real demand for buying, a large number of customers are looking to buy private houses in Hanoi at the end of the year for investment purposes. It is not difficult to understand that private house prices have set a new price level in the context of the segments that meet real demand, such as apartments, increasing sharply in price.
