Apartment Prices Remain High
A VietnamNet survey reveals that in Hanoi, the supply is currently concentrated mainly in the western and eastern parts of the city. Apartment prices in West Hanoi range from 60-100 million VND per square meter, while in the eastern part, they are slightly lower, at 60-70 million VND per square meter.
Despite an increase in the supply of apartments recently, most of the new developments cater to the high-end market, leaving a gap in the mid-range segment (30-50 million VND per square meter).
Apartment prices remain high. Photo: Hoang Ha
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Mr. Nguyen Hung, a potential apartment buyer from Ha Dong, Hanoi, shared that after researching various recently launched projects, he found the prices to be extremely high. For instance, the QMS To Huu mixed-use project, which had been dormant for years, is now offering apartments priced between 54-73 million VND per square meter, depending on the axis.
With a family income of around 30 million VND per month, Mr. Hung would have to borrow 50-70% of the apartment’s value. This would result in monthly installments of nearly 20 million VND, leaving only 10 million VND for basic living expenses, which is very tight.
“With older projects re-entering the market, I have to be cautious about the quality of the construction, as well as the project’s progress. There have been cases of projects restarting only to stall again,” Mr. Hung added, considering postponing his purchase until the new real estate laws take effect.
Mr. Nguyen Quoc Khanh, Vice President of the Vietnam Real Estate Brokers Association, noted that the high apartment prices, especially in the outskirts, which now range from 60-70 million VND per square meter, have made it challenging for people, especially those with average or low incomes, to afford a home.
Don’t Overstretch Yourself with Loan Repayments
According to a report by the Ministry of Construction on the real estate market in the first half of the year, the market has seen positive reactions, with customers and investors actively seeking information. Transaction volumes for apartments, detached houses, and land plots have been on the rise, with each quarter showing an increase over the previous one and surpassing the same period last year.
In terms of supply, there were 18 completed commercial housing projects, 23 newly licensed projects, and 984 ongoing projects. For projects investing in infrastructure development to transfer land-use rights for building houses, there were 32 completed projects, 16 newly licensed projects, and 519 ongoing projects.
The report also showed that there were over 253,000 successful transactions, an increase of nearly 110.3% compared to the last six months of 2023. Most of the transactions were for land plots.
The Ministry of Construction attributed the increase in apartment prices to limited supply. However, the real estate market is showing positive signs, with a number of stalled projects being restarted and new projects being launched.
In the first four months of the year, Hanoi’s apartment market experienced a shock price increase, not only in the city center but also in peripheral projects, with prices reaching 60-70 million VND per square meter, despite being located tens of kilometers from the city center.
While apartment prices have cooled down recently, they have not decreased as much as expected by the majority of the population.
Experts advise that the real estate market will not recover immediately and that buyers with incomes below 30 million VND per month should not overextend themselves financially, as it could lead to risks in loan repayments.
Hong Khanh
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Astonishingly high price for old and dilapidated apartment buildings reaching nearly 200 million VND/m2, rivaling the most luxurious condominiums in Hanoi
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Starting from the beginning of the year, banks have been implementing various low-interest credit packages, offering loans to pay off debts from other banks… with the aim of stimulating the demand for home loans.
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