At the end of February, Hang (34 years old, from Quang Ninh) finalized the purchase of a 40m2 house for the price of 3.2 billion VND in a small alley on Vu Tong Phan Street (Thanh Xuan District, Hanoi).
Hang said that her initial intention was to buy an apartment, but later changed her mind to buy land because apartment prices were increasing too fast.
Previously, Hang and her husband rented a room in Thanh Xuan District because it was close to their workplace. Last year, Hang’s husband changed jobs in Ha Dong District. His new job required him to come home late at night, so Hang discussed with her husband about buying an apartment in Ha Dong.
“In September 2023, I went online to check the prices of apartments with an area of about 65m2, 2 bedrooms, 2 bathrooms in an apartment building in Duong Noi and saw that the prices were around 2-2.2 billion VND. I also asked a real estate agent and they quoted around 2.1 billion VND. I was very surprised because in April 2023, a colleague of mine also bought a similar apartment in the same building for only 1.75 billion VND. So within 5 months, the price of the apartment had increased by nearly 500 million VND,” Hang shared.
Seeing that apartment prices were increasing rapidly, Hang and her husband decided to wait and not buy anymore. During that time, they considered another option, which was to look at houses and land in the surrounding area.
Hang said that recently, a real estate agent informed her that the prices of apartments in the building had increased again, with a similar apartment now priced at 2.2 billion VND. Considering the remote location and the high price, Hang and her husband decided to buy a house in the alley instead.
The prices of apartments are skyrocketing, causing many people to look for houses in the alleys. Photo: Hong Khanh. |
“Although we had to borrow more money, as the saying goes ‘whatever is obtained is worthwhile,’ so we accepted it. In the long run, I think that houses and land will continue to increase steadily and be more stable. Moreover, this year my child will start first grade, and living in Thanh Xuan has many advantages when it comes to choosing a school and studying,” Hang said.
In the context of high apartment prices, Minh Quang (42 years old, from Bac Giang) is also changing his plans and looking to buy a house in the alley.
The man said that at the beginning of 2023, with 2.3 billion VND, he could have bought an apartment of about 55m2 with 2 bedrooms in an apartment building in Nam Tu Liem District, Hanoi. But now, to buy that apartment, he needs around 2.7-2.8 billion VND.
“I am asking a real estate agent to help me find a house in the alleys in the Dai Mo area. The criteria are a price below 3 billion VND and 3 bedrooms, because I have a son and a daughter, so I want them to have their own rooms,” Quang said.
Houses in the 2-4 billion VND range attract buyers
According to Hoang Phuong, the director of a real estate trading floor in Hoang Mai (Hanoi), the number of people interested in houses in small alleys has increased in recent months.
The most sought-after segment is houses with an area of 30-40m2, priced around 3-4 billion VND. This price range is suitable for many people’s ability to pay, so it attracts buyers. Most buyers have a real demand for living.
“Some customers initially planned to buy land, but they told me that due to the high apartment prices, they changed their direction towards houses,” Phuong said.
According to a report by a real estate market research company, while many real estate segments are facing difficulties, individual houses in alleys in Hanoi are still attracting attention and experiencing growth in buying and selling transactions. Compared to the same period last year, individual houses in the districts of Dong Da, Ha Dong, Hai Ba Trung, and Hoang Mai have increased by 4-8%. The highest increase is in individual houses in Tay Ho District, with a 9% increase.
Many real estate experts believe that limited land supply and the real housing demand of the population contribute to the ongoing interest and stable liquidity of individual houses in alleys. This segment does not experience sudden rises and falls like some segments that depend on market fluctuations, policy changes, or planning information.
However, Phuong said that while apartments usually have a uniform price range with little variation between units, pricing individual houses and land is more difficult and depends on factors such as location, frontage, shape of the land plot, age of the house, etc.
Hong Khanh
