The price of apartments in Hanoi is currently the highest ever. (Photo: MarketTimes)
Ms. Thuy Linh (Doan Ngoai Giao urban area, Bac Tu Liem) proudly shared that in October 2023 she bought a 100m2 apartment at Golden Park Tower on Duong Dinh Nghe Street for 5.2 billion VND, but by the time before Tet 2024, there were buyers willing to pay 6 billion VND. The purpose of the purchase was to have a place near Cau Giay District for her child to attend school, not for business purposes. Fortunately, right after her purchase, the apartment continued to increase in price.
Ms. Linh also mentioned that the apartment in Doan Ngoai Giao urban area that she bought in 2021, which is currently being completed, is the most beautiful in this area and is priced at 80-85 million VND per m2. Compared to the initial payment according to the progress, she has already doubled her investment.
“I didn’t expect apartment prices to skyrocket like this. Perhaps this is the period of the highest price increase for apartments. Even my husband, who works in the real estate industry, didn’t anticipate it. Knowing that the prices have risen so high, we invested in apartments,” said Ms. Linh.
Not stopping there, when hearing about the continuing increase in apartment prices in 2024, Ms. Thuy Linh boldly invested money in apartments with the purpose of renting them out or selling them at a higher price. She said that just last holiday weekend, she inquired through a real estate agent about an apartment at the Florence project on Tran Huu Duc Street (Nam Tu Liem) with an area of 83m2 and 2 bedrooms, priced at 4.1 billion VND. However, the next day when she went to view the apartment, the agent informed her that a deposit had been placed by someone else, as everyone is worried that prices will continue to rise every day. The agent also shared that in October 2023, the 83m2 apartment was priced at 3.9 billion VND, and in just 3 months, it had increased by 200 million VND.
The real estate agent took Ms. Thuy Linh to see some apartments with an area of 62m2 at the Iris Garden project on Tran Huu Duc Street, but the prices were also exorbitant, ranging from 3.4 – 3.55 billion VND per apartment, equivalent to 54.8-57 million VND per m2. Meanwhile, in the middle of 2023, this apartment was priced at 3.2 billion VND. With this price range, families with average incomes cannot afford to buy.
According to Mr. Nguyen Anh Duc, CEO of ABLand Real Estate Company, from December 2023 onwards, apartment prices continued to reach new highs. Most transactions occur in the secondary market, primarily involving used apartments purchased by residents for resale.
According to Mr. Anh Duc, not only apartments within the third ring road, but also those outside the third and 3.5 ring road have seen shocking price increases. For example, an apartment at Gemek I in An Khanh commune (Hoai Duc) with an area of 69m2 is being sold for 2.5 billion VND, equivalent to about 36 million VND per m2. Used apartments like Eco Green in Tan Trieu commune, Thanh Tri district are being offered for sale at 43-45 million VND per m2. Prices for new apartments range from 50-80 million VND per m2.
Another used apartment at Phuong Dong Green Park (Tran Thu Do, Hoang Mai) is being offered for sale at 48 million VND per m2. Another project nearby, Rose Town at 79 Ngoc Hoi with a remaining usage time of just over 30 years, is priced at over 2.6 billion VND for a 65m2 apartment, while a long-term apartment is priced at 3.1 billion VND.
The apartments that have been in use for 15-20 years are also priced at around 40 million VND per m2, such as My Dinh Sudico (Me Tri) apartment building and My Dinh 1-2 urban area on Nguyen Co Thach street.
Mr. Nguyen Van Dinh, Chairman of the Real Estate Brokers Association, said that the continuous high increase in apartment prices is due to the limited supply of apartments in Hanoi in recent years. The number of projects has become increasingly limited, while market demand continues to rise, resulting in an imbalance in the real estate market.
“Currently, apartments priced at 30 million VND per m2 have vanished from the market. Apartment prices are too high, making it impossible for people with real housing needs to afford them,” said Mr. Dinh.
Previously, reports on the real estate market from several research institutions also indicated that due to limited supply and legal obstacles, apartment prices in inner districts of Hanoi have been on the rise, and the trend is expected to continue in 2024.
Even though the Land Law has been passed, the delay in implementing the Law, along with land clearance and compensation at market prices, has made the dream of affordable housing more distant.
