Hanoi has strongly participated with many solutions, but the imbalance in supply and demand at the present time makes the real estate market fluctuate, continuously recording very high house prices.
Over the past time, the Government has actively implemented solutions to support, stabilize and develop the real estate market. Recently, the Prime Minister issued Public Power No. 1376/CĐ-TTg requiring ministries, branches and localities to consider this as one of the urgent tasks; continue to drastically, promptly and effectively implement solutions to promote the safe, healthy and sustainable development of the real estate market.
Implementing the direction of the Government, Hanoi has strongly participated with many solutions, but the imbalance in supply and demand at the present time makes the market fluctuate, continuously recording very high transaction prices, especially apartments “peaked”.
Scarcity of supply, apartments “heat up”
Information about the housing market in Q4/2023, CBRE Vietnam said that Hanoi has about 4,500 apartments for sale, bringing the total supply of new apartments for the whole year 2023 to 11,400 units, the lowest level in the past 10 years, of which, 90% are in the high-end segment.
The average price of newly launched apartments increased by nearly 7% quarter-on-quarter, up 14% year-on-year and reached about 50.8 million VND/m2. The increase in selling prices in addition to the reason is that the new supply is mainly in the high-end segment, some investors have adjusted to increase prices and open more goods on higher floors.
Surveying in Cau Giay district, the resettlement apartment in land plot A10 in Nam Trung Yen area (Nguyen Chanh Street) has been in use for many years with a transfer price of 43-47 million VND/1m2 that very few people put up for sale. Even the two 30T buildings of this project have just been completed, are being handed over to people, there is no “pink book”, the price is increasing week by week according to the progress of receiving houses (from 42-45 million VND/m2 only 1 month ago).
According to some real estate exchanges, many people now switch to buying used apartments due to the stable living environment, adequate infrastructure, full legal papers…
This type is constantly being sought after, causing the selling price to be constantly pushed up in most districts such as: Ha Dong, Thanh Xuan, Cau Giay, Bac Tu Liem, Nam Tu Liem, Tay Ho and some districts preparing to go to the district; the area is close to major roads…
Hapulico Garden House at 85 Vu Trong Phung (Thanh Xuan district) has been in use for more than 10 years but the transfer price is still at 310-320 million VND/m2.
In addition to the increase in prices of the affordable apartment segment, some mid-range projects in Thanh Xuan district such as: Imperia 203 Nguyen Huy Tuong, Legend 109 Nguyen Tuan, Hapulico 85 Vu Trong Phong, Gold Season 47 Nguyen Tuan, Legacy Le Van Thiem… also recorded a price of 45-60 million VND/m2.
Notably, many projects under construction also have very high selling prices. For example, the Handico Complex project (33 Le Van Luong), expected to be completed in Q1/2025, is offered for sale at about 60-62 million VND/m2 or Lumi Hanoi high-end project (in Vinhomes Smart City, near Thang Long Avenue) which is about to start construction in Q1/2024 will create a new price level in the Western area.
The project will provide about 4,000 apartments, although not yet open for sale, the price offered by brokers is about 65 million VND/m2…
Prices of villas, high-end townhouses traded at high levels
Despite the decrease in prices and gloomy transactions in some localities, many high-end housing projects in central districts such as Tay Ho, Thanh Xuan, Cau Giay, Long Bien, Nam Tu Liem, Hoang Mai…, villas and townhouses are still liquid with transfer prices of several hundred million VND/m2.
Noted at Louis City Hoang Mai Project, in the middle of 2023, the selling price will decrease due to the influence of the general market, over the past 2 months, adjacent apartments and villas increased from 10-15 prices to reach 150-250 million VND/m2. Some “VIP apartments” on Yen So lake return to the “peak” of 2022 about nearly 300 million VND/m2.
Louis City Hoang Mai project (Hoang Mai district) trades at 150-300 million VND/m2.
“We don’t have stock to sell right now while buyers are buoyant again. Most of the homeowners who need money have sold from the first half of 2023, so the remaining units if there is no demand for them investors will not sell because of the fact that this project enjoys many advantages, especially after Hoang Mai district inaugurated a 30m road connecting Tam Trinh Street to Phap Van – Cau Gie in October 2023, ” said Mr. Vuong Quoc Anh – a broker with many successful transactions in this project.
The attraction of Louis Hoang Mai Project, in addition to convenient location, synchronous and modern socio-technical infrastructure system, with a total of 800 houses, the owner basically completed phase 1-2 (about more than 600 units), handed over the house to guests with a “red book” to ensure progress, quality of works. The investor is currently focusing resources to urgently implement phase 3, striving to complete the entire project in Q3/2024.
Or in Thanh Xuan district, some garden houses at Hapulico 85 Vu Trong Phung recently also traded from 43-45 billion VND/unit with an area of 140m2 (equivalent to 310-320 million VND/m2). In area 90 Nguyen Tuan, adjacent apartments with small areas cost up to 350-370 million VND/m2; Green Bay villas of Vingroup (Nam Tu Liem district) are more than 100 billion VND/unit, about 380-450 million VND/m2…
Notably, in Tay Ho district, according to the instructions of some brokers, the high-end real estate market has not dropped in price, the transfer price is still very high, from 250-470 million VND/m2. The difference in these projects is that the larger the area, the higher the price because of the advantages over space and infrastructure system.
Mr. P.T.H, the owner of a 286m2 villa in K3-phase 2 of Starlake super high-end project (Tay Ho Tay Urban Area) said that he has just successfully “closed” the sale of the house for nearly 430 million VND/m2 (total value of more than 120 billion VND).
“Compared to 2022, house prices have decreased but with such a large property, I still have many buyers looking to buy, while the resale less proves that housing in the central area is not affected much by the general market,” Mr. P.T.H. said. Some large corner apartments also in phase 2 of this project have just traded 450-460 million VND/m2.
Ciputra project phase 3 (Tay Ho district, connecting from Nguyen Van Huyen, extending a 40m road from Nhat Tan bridge to Thang Long bridge) under construction also offers for sale from 300-330 million VND/m2.
Walking through Ciputra project phase 3 (located right on Nguyen Van Huyen street extending to cut 40m from Nhat Tan bridge to the foot of Thang Long bridge), corner villas are offering from 300-330 million VND/m2, while the original price of the investor is expected to be about 270-280 million VND/m2.
“This is an external case, so my VIP customers can choose to buy 1 of 2 corner lots, waiting for the city to approve the price to be able to enter the name of the purchase contract. They finish selling quickly, so I advise buyers to benefit more. Your investment will definitely increase on par with K3 Starlake,” said broker named Hung specializing in Tay Ho area confidently.
To prove that potential forecast, this broker also leads guests to many adjacent apartments, villas in K1, K5, K6 Ciputra areas that have been put into residence for many years (area of more than 100m2 to several hundred m2) have just traded at prices from 270-370 million VND/m2.
Not only the central area, land prices in Thanh Ha Urban Area (Ha Dong district) also reached a “fever” from mid-November 2023 after Hanoi allowed the construction of B1.1 area. 14m pavement lots increased in price about 10 times, 25m pavement lots increased by 20 prices but there were no goods for sale. Many landowners cancel the deposit, accepting compensation to sell at a higher price.
Ms. N.T.L, land broker in Thanh Ha Urban Area, said that currently villa lots, adjacent to B1.1 area, the price ranges from 65-95 million VND/m2 (14-25m road), even 120 million VND/m2 (30m road). Before October 31, 2023, a 90m2 adjacent apartment costs from VND 5.2 billion, at the end of November 2023 it will increase to VND 6.4 billion/unit. The situation of “land fever” not only occurs for B1.1 but other areas such as B1.4, B1.2 and areas A near Cienco 5 trunk road, also “pushing” to 56-68 million/m2…
Unlike project housing, the land market in some areas with the 4th Ring Road passing through the last months of 2023 also traded more actively with increased price fluctuations. However, it is not “where the road is open, the land rises there” as people often say by word.
In Ha Dong district, the locality with the most population in the area where the 4th Ring Road passes such as Phu Luong, Phu Lam, Yen Nghia, land prices in beautiful locations, convenient traffic is up to 70-100 million VND/m2; about 40-50 million VND/m2 with small alleys.
In Hoai Duc district, land prices increased by 10-15% over the same period in 2022, about 50-70 million VND/m2; Land in the alley is also 40 million VND/m2…
There is no denying the development potential that Ring Road 4 brings to local real estate, but in some areas such as Soc Son and Me Linh, the market is still quiet, some places are still for sale to cut losses, liquidity is slow.
Ms. Nguyen Thi Xuan Thu, a pensive investor, said that more than 2 years ago she bought 2 plots of land adjacent to the Cienco5 project in Tien Phong commune, Me Linh district for VND 25 million/m2 (area of 100m2 / plot), until mid-December, she had to close the sale with the price of VND 30 million/m2.
“If compared to bank savings, it is calculated to be a loss, but because to be proactive in financial resources, I closed to sell 1 plot of land. Despite many advantages in transport infrastructure, city planning in the future, Ring Road 4 passes, but investment here is not effective, many projects are inadequate, buying land for many years is still in the form of capital contribution contracts,” Thu shared.
Surfing through the websites, many villas, adjacent to Cienco 5 Me Linh project for sale for only 15-20 million VND/m2; and in Soc Son district, land plots are also at 12-15 million VND/m2…
Explaining the situation that many investors are not “salty” to buy land in Me Linh and Soc Son at this time, a person with investment experience said that if “down money” here takes a long time, waiting for the infrastructure to develop synchronously, the population moves to a crowded place.
Previously, the market was mainly “surfing”, now not many people risk investing with a vision of 10-20 years, so they still only listen to the planning…
Market stability
Experts say that an increase in apartment prices is quite possible at this time when the demand for housing of people in big cities is still very high while supply is scarce. Many projects are stalled due to legal entanglements, so apartment prices are difficult to decrease, may continue to rise.
Chairman of the Vietnam Association of Real Estate Brokers Nguyen Van Dinh said that real estate is operating according to the market mechanism, with enough supply and demand, prices will fall. The supply-demand phase misalignment causes house prices to constantly fluctuate. Meanwhile, construction materials increased in price, land auction costs, inputs and capital also increased, making it impossible for enterprises to restructure selling prices.
Evaluating real estate in some potential peripheral areas, an analyst, buyers need to be careful, learn carefully about the market, understand the planning, liquidity to have a long-term vision, avoid risks. Information “heating up” is sometimes a trick of the “driving team” to “create waves”, so special attention must be paid to the legality of the project and the reasonableness of the selling price. When using financial “leverage”, investors must have a “down money” roadmap and divestment strategy to avoid risks.
The ‘super high-end’ Starlake project (Central Urban Area of Tay Ho Tay District) trades at prices ranging from 430-470 million VND/m2 of villa but still has a scarcity of offerings.
Businesses believe that the supply-demand phase misalignment lies in problems in the legal basis system. Many administrative procedures are still cumbersome, some mechanisms and policies are not synchronous, so they have not “opened” the real estate market.
As a locality with hundreds of housing projects, urban areas are being invested and built, but the supply to serve the housing needs of the people of the Capital is still very small, not suitable for each object, especially low-income people. Hanoi is actively implementing a series of solutions to help the market develop stably.
Chairman of the Hanoi People’s Committee Tran Sy Thanh said that following the direction of the Prime Minister, Hanoi has issued a Housing Development Plan for the period of 2021-2030, striving to build 1.25 million m2 of new social housing floors by 2025 and build 5.5 million m2 by 2030, meet sufficient housing needs for policy beneficiaries.
Along with that, Hanoi focused on removing obstacles for hundreds of “suspended projects”, proactively reviewing, examining and strictly handling cases of violations of the law, promoting the construction progress of real estate projects.
