With a budget of 2 billion VND (including a bank loan of more than 30%), Mr. Pham Quang Linh (Nam Dinh) and his wife planned to find a house in an alley to facilitate their family's daily life. However, despite struggling for a long time, Mr. Linh still could not find a satisfactory house in the alley.
Mr. Linh said that recently, the price of houses in the alley has increased due to the demand of both real residents and investors, so it is relatively difficult to find a house under 2 billion VND with a moderate area and full legal documents in the inner city district.
"When exchanging finance of about 2 billion VND, brokers often introduce to me some houses with very small area of only more than 10m2, even without red book or with shared book with 1-2 other households. For example, a house in an alley in Truong Dinh (Hai Ba Trung) has an area on the red book of 10m2, actual usable area of 15m2, for sale at 2.45 billion VND.
Another house in an alley in Kim Nguu (Hai Ba Trung) also does not have a red book with an area of 15m2, built from the second floor to 18m2, is being sold for 2.3 billion VND. The house has 3 bedrooms, 3 bathrooms and is located on a corner lot. However, the house does not have a red book yet, so the transaction will be in the form of a notarized document.
Or a house in an alley at Ngo Cho (Kham Thien, Hanoi) also does not have a red book, has an area of 12m2, 2-storey house is being sold by the owner for 1.7 billion VND. The house does not have a red book so the two parties will buy and sell it in the form of a notarized document.
For the house with a shared red book in Duong Van Be (Hai Ba Trung), the area is 18m2, including 2.5 floors, is being offered for sale at a price of 1.68 billion VND. According to the broker, the reason the house has a cheap price compared to the average in the area is because it only has a shared red book" - Mr. Linh informed.
According to Mr. Nguyen Minh Duc - a real estate broker in Hanoi, currently the type of real estate in the range of under 3.5 billion VND is being traded quite actively. The reason is that in this real estate segment, transactions mainly come from the real needs of customers. In addition, if investing, customers can easily spend a moderate amount of capital, so this segment is suitable for the financial capacity of many people.
However, according to Mr. Duc, with a financial level of less than 2 billion VND, investors who want to buy houses in alleys in inner-city districts without full legal documents need to be careful because they may encounter risks later. With that financial level, people with real housing needs can choose to buy houses in some suburban districts such as Hoai Duc, Thanh Tri...
According to the Vietnam Association of Realtors (VARS), houses in alleys are considered to have good liquidity, complete legal documents, and affordable prices. They bring high rental yields in the context of increasing demand for renting and buying houses for living.
VARS research data shows that the prices of individual houses being traded have increased by 5-15% compared to the end of last year. Although the price increase here still has many unusual signs, it cannot be denied that the large amount of interest and transactions are real.
According to VARS experts, housing prices in the inner city will hardly decrease. People with real housing needs should consider putting money down to buy a house if they find a product that suits their financial capacity, which means not borrowing too much.
