“Act Fast! Apartment on the Market for $3.9 Million – Brokers Urge Quick Sale as Price May Spike to $4.1 Million Tomorrow”

Skyrocketing Housing Prices: A Cause for Concern

Mr. Dung, a 42-year-old resident of Hoan Kiem District, Hanoi, has never witnessed such an unprecedented surge in housing prices in the capital city as he has in recent times.

With a budget of around VND 5 billion, Mr. Dung initially set out to purchase a house in the heart of Hanoi back in late 2023. However, his confidence in finding a suitable home within his budget took a hit when, after finally deciding on a property, the owner suddenly changed their mind and decided not to sell. The prices of other houses he inquired about only continued to soar higher.

Entering 2024, the situation has only worsened. Many small houses located in alleys, with an area of 30-40m2 and a radius of 5-6km from the center of Hanoi, which were priced at VND 4.5 – 5.1 billion last year, have now skyrocketed to VND 7-8 billion. Faced with this, Mr. Dung decided to shift his focus to purchasing an apartment. However, he was soon taken aback by the unexpected surge in prices of this property type as well.

For instance, an apartment measuring 62m2 on Tam Trinh Street, Hoang Mai District, was initially listed at VND 3.7 billion. However, just a few days later, the price had already increased to VND 3.9 billion. Furthermore, real estate brokers urged him to make a quick decision, claiming that the price could reach VND 4.1 billion the following day due to expected road expansion in the area.

“There have been instances where the same apartment was offered to me at a price of A by one broker, but when I inquired with another broker, the price was A plus several tens to hundreds of millions of dong higher. It’s evident that they are rapidly setting new prices without following any discernible growth pattern,” Mr. Dung recounted.

Many individuals, like Mr. Dung, find themselves in a similar predicament, sitting on a proverbial “fire” as they worry about the rapidly rising prices. This fear of missing out further fuels their urgency to make a purchase decision.

Take the case of Ms. Hien, who recently took a bold step by borrowing an additional VND 1 billion to purchase an apartment in Nam Tu Liem District for VND 2.5 billion. Despite knowing that the price was already high, she witnessed it increase by tens of millions of dong with each passing day.

“If I hadn’t made the decision to buy quickly, I would have had to spend nearly VND 2.6 billion to acquire the apartment I’m currently living in,” shared Ms. Hien.

Caution is Key When Faced with Price Manipulation

According to experts, the surge in housing prices is attributed to the decreasing availability of land, leading to a scarce supply, while the demand for housing among the populace continues to rise.

Mr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association and Chairman of the Vietnam Real Estate Brokers Association, candidly remarked that the recent increase in apartment prices, particularly in Hanoi and Ho Chi Minh City, has been unusual.

“This situation is undoubtedly influenced by the interests of certain groups, given the economic context, market conditions, and the fact that people’s incomes have not yet recovered. While housing prices soar, transactions remain stagnant, indicating possible manipulative tactics employed by a group of investors with questionable intentions,” Mr. Dinh stated.

Mr. Dinh further elaborated that these interest groups take advantage of the scarce supply of apartment buildings to execute their price manipulation strategies. In reality, very few new projects have been approved for investment in Hanoi in recent years. The majority of the projects on the market are old ones that are being resold. The supply is not only insufficient but also lacks quality, and the product structure is misaligned.

Therefore, he advised homebuyers to remain vigilant and cautious in the face of real estate brokers’ tactics to avoid paying more than necessary.

Sharing a similar viewpoint, Mr. Nguyen The Diep, a member of the Vietnam Real Estate Association, suggested that to avoid overpaying for a property, buyers should proactively survey and compare prices of similar apartments in the same project, area, and segment. If the price quoted by a broker seems excessively high, it is advisable to negotiate or even reach out directly to the property owner.