Mr. Tran Duc Khang, Sales Director of Region 2 at OneHousing, shared that it has not been easy to find a house priced at VND 3-4 billion in Hanoi’s inner city in recent months.
For a moderately-sized alley house with enough space for motorbikes to pass each other and a functional layout of approximately 30m2, featuring 2-3 bedrooms, the land price alone would exceed VND 100 million per m2. Including construction costs, the total transaction price would surpass VND 4 billion.
Therefore, houses in the VND 3-4 billion range, if available, might have unfavorable feng shui aspects (such as a narrow back or a T-junction), be built on old land where the owner intends to sell only the land, or be located at the end of a deep, narrow alley.
In the outskirts, houses in alleys are currently trading at around VND 70-80 million per m2, and even higher for corner lots or more attractive locations, surpassing VND 100 million per m2.
According to data from OneHousing’s Market Research and Customer Insight Center, the East and West regions are the focal points of the Hanoi real estate market in terms of area.
These areas are not only vibrant in the apartment segment but also account for 66% of Hanoi’s market in the first six months of 2024 for residential land transactions.
Houses in the VND 3-4 billion range in Hanoi are scarce. (Illustrative image: Minh Duc)
In August, the West region, including Cau Giay, Nam Tu Liem, Bac Tu Liem, and Ha Dong districts, led the market with approximately 1,200 transactions (accounting for 36% market share), followed by Gia Lam and Long Bien districts with about 1,100 transactions (33% market share).
“The West region is vibrant in residential land transactions due to its attraction of a considerable labor force and job opportunities comparable to those in the inner city, making it a convenient choice for home buyers. Meanwhile, the East region is gaining popularity thanks to its developing infrastructure and improved living conditions,” explained Mr. Khang.
Looking ahead to the end of 2024, OneHousing predicts that the residential land market will record approximately 23,000 transactions, still concentrated mainly in Hanoi’s East and West regions.
In terms of pricing, following the general trend of the market, residential land prices have also increased, but there are no signs of a sharp rise within a few months; instead, the increase has been gradual and more stable.
The report also shows that residential land transactions remained active during the Hungry Ghost Month, reaching 3,300 transactions, only slightly lower than in previous months. This goes against the typical “downturn” experienced by the market during this period annually.
One reason for this anomaly is the shift in consumers’ beliefs. While it was once customary to avoid significant transactions during the Hungry Ghost Month, the modern perspective associates this month with the Buddhist holiday of Vu Lan, prompting many individuals to consider purchasing a house, a substantial asset.
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