After a period of heating up, house prices in alleys have begun to cool down. In many areas in Hanoi such as Cau Giay, Dong Da, Hai Ba Trung, the selling price was once up to 90120 million VND/m2, but has now been adjusted down by 515%, especially for houses located deep, with weak infrastructure or unclear legal documents.
Ms. Nguyen Kim Ngan (residing in Vong Thi, Hanoi) shared that due to the need to buy a house to live in, she once researched a house with an area of 60m2 in a small alley that was just enough for motorbikes to avoid each other, but was "priced" up to 100 million VND/m2. I was very satisfied but could not buy, she said.
Not only Ms. Ngan, many real buyers are forced to temporarily postpone plans or increase their budget to billions of dong without still finding suitable apartments. Mr. Tran Thanh Tung (Thanh Xuan District) said that with a financial situation of about 5 billion VND, his family was forced to borrow to increase to 78 billion VND, but it was still not easy to find a house as desired.
According to Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club - the price increase mainly comes from a group of brokers "inflating prices". He cited: "There was a period when the price of houses in alleys was pushed up to more than 100 million/m2, but then the market plummeted and there were almost no transactions".
In fact, buyers are now more alert, and brokers are no longer easily "prepared" as before. The market only has transactions in houses with beautiful locations, wide alleys, full legal documents and reasonable prices - that is, close to real value. As for the houses that were "inflated" and are now being sold all year round, no one has asked.
A representative of the Vietnam Real Estate Association (VNREA) said that when houses in alleys are pushed up in price too high, people will have more and more difficulty accessing real housing needs. If real estate prices are not controlled according to infrastructure, legal and planning, the "fever" of houses in alleys - even if temporarily quiet - can still return according to the cycle. The real buyer is ultimately still the one who suffers the most, he said.
According to Mr. Do Van Thach - representative of Dova Land Company - the price of houses in alleys has been increasing rapidly in recent times, mainly due to the psychology of " profiteering expectations" being inflated, combined with the phenomenon of large-scale investment. "Some brokers intentionally create a feeling of scarcity, pushing prices up that are not commensurate with reality".
In fact, houses in alleys still have many limitations such as weak infrastructure, difficult access, and lack of transparency in legal procedures. It is unreasonable for prices to be pushed at the same level as townhouses or luxury apartments. When interest rates increase, speculative cash flow stagnates, liquidity is weak, then adjustment is inevitable. Currently, many apartments have decreased by 10 20% compared to the peak, but purchasing power is still low because consumers are more cautious, interested in the value of use instead of chasing profit expectations.
"This is the necessary period for the market to " entertain virtual". If the house in the alley has clear legal status, convenient location, and reasonable price, it will still retain its value. But if they continue to expect virtual profits, investors will easily get stuck, said Mr. Thach.
In the context of a strong market clearing, only products that truly meet the requirements of legality, position and price can stand firm. Housing prices if not based on real demand will soon have to return to real value. For buyers, being alert at this time is the key factor to avoid turning settling down into a risky investment.
