The continuous price increase of apartments in the first months of the year made many people temporarily shelve their plans to buy a house, the market has cooled down since the beginning of April 4.
Condominium prices “fever” in the first months of this year. According to a survey by reporter Dan Tri, many apartments in Hanoi have increased in price from 300 to 700 million VND in just 1-2 months. The price “fever” occurs not only in newly opened projects but also in many old apartments, which have been used for many years.
However, the “fever” price of apartments in Hanoi only occurred in a short period. Right from the beginning of April 4, many brokers selling this real estate had to admit, the market showed signs of slowing down, the reason was that the price was anchored high, the psychology of buyers also fell into a state of confusion and waiting.
“The apartment market is the hottest after Tet. At that time around February and March, my brokerage office was always full every week, successful transactions were also about 3-5 apartments,” a broker office owner in Hoai Duc area shared and admitted, Since mid-April, British office brokers have not successfully made any transactions.
In the psychology of buyers, many customers also decided to stop researching to buy apartments at this time. Because according to them, supply is scarce and apartment prices are too high.
“With finance of VND 3 billion, it is almost impossible for me to find a 2-bedroom apartment in Thanh Xuan district. At the current price, it is far exceeding the family’s finances,” said Nguyen Van Duc, who once intended to buy an apartment.
PropertyGuru Vietnam’s recent real estate market report shows that Hanoi’s real estate market has “cooled down” after the first months of the year. Especially for the condominium market in this area, there have been rapid changes.
Specifically, according to the above unit, if the Hanoi apartment market in March this year recorded impressive growth figures of interest and number of listings, last April had opposite developments.
Similarly, in the buying and selling market, if in March, the level of interest and the number of listings in the Hanoi apartment segment increased by 50% and 68% respectively, by April this year, the level of interest and the number of listings decreased by 30% and 2% respectively.
In addition, in the rental market, the level of interest and the number of posts in March this year increased by 37% and 35%, respectively, and in April they both decreased by 10%.
Notably, the above decline is in the general decline circuit of the whole Hanoi real estate market when the level of interest decreased by 18%, the number of posts decreased by 2%. The decline was simultaneous in all districts. For example, Ha Dong district decreased by 28%, Nam Tu Liem district by 24%, Hoang Mai district by 22%, Thanh Tri district by 23%, Hoai Duc district by 23% …
Commenting on the Hanoi apartment market in the coming time, Mr. Nguyen Quoc Anh, a leader of PropertyGuru Vietnam, said that despite the level of interest and the number of listings going down, apartment prices are still anchored high, so waiting for apartments to drop sharply is not feasible. Because the supply of the market cannot have fluctuations in the upward direction.
“In the coming time, when the amended Law on Real Estate Business takes effect with strict requirements in the implementation and development of real estate projects, the number of investors meeting the requirements will decrease. Meanwhile, the demand for housing ownership is always present, especially in big cities”, Mr. Quoc Anh shared.
In the case of buying to invest, Mr. Quoc Anh said that if investing in the short term, buyers should not go down in a hurry because the price and level of interest in apartments in this period are not stable, when fast liquidity is needed, investors will face difficulties. If investing in the long term and investing for the purpose of leasing for cash flow, condominiums are still a type that can be considered.
“The growth of condominium investment profit (price growth rate plus rental yield) in the period of 2015-2023 will reach 97%, ranking No. 1 compared to other types of investment such as stocks, gold, savings, foreign currency,” Mr. Quoc Anh further analyzed.
Also sharing about the apartment market, Ms. Do Thu Hang, Senior Director of Consulting and Research Department, Savills Hanoi said that buyers need to carefully consider the use value and reasonableness of the project.
“In general, if prices continue to rise, buyers will consider their finances. While real demand still accounts for the main proportion, if prices continue to push up, buyers can consider and choose the option of renting inner-city apartments, or accept to shift demand to supply in provinces neighboring Hanoi with reasonable prices,” Hang said.
