The Rising Trend of Apartment Prices in My Dinh, Hanoi: A Cautionary Tale for Home Buyers
In the market for an apartment in the My Dinh area of Nam Tu Liem, Hanoi, Ms. Van Anh was introduced to a property by a real estate agent named Huong. The apartment, spanning 89 sqm with 3 bedrooms and 2 bathrooms, was priced at VND 4.35 billion. However, Ms. Van Anh soon discovered that two other agents were offering the same apartment at different prices, one slightly lower and the other VND 20 million higher.
Agent Huong explained that slight variations in asking prices between agents are understandable, and within this price range, negotiation is possible. However, purchasing from an investor tends to be more expensive and less negotiable than buying directly from the homeowner.
According to Huong, apartment prices in the My Dinh area have been surging, with increases of VND 50-100 million per unit within just a month. This trend is particularly noticeable for moderately-sized apartments, which are considered more affordable for young families.
Ms. Thanh Ha from Ha Dong, Hanoi, shared a similar experience. In early August, she inquired about a 72 sqm, 2-bedroom apartment on Tran Phu Street in Ha Dong, which was listed at VND 3.1 billion, or approximately VND 43 million per sqm. The apartment had basic furnishings. However, by early September, the asking price had jumped to VND 3.9 billion, an increase of VND 800 million in just one month. The agent justified the hike by citing the apartment’s location on a middle floor, proximity to a major road and the elevated train, and the addition of new furnishings by the landlord.
 Skyrocketing apartment prices by the day, according to real estate agents. Photo: Tien Anh |
Mrs. Duyen from Cau Giay, Hanoi, and her husband were in the market for an apartment in Bac Tu Liem, with specifications including 72.5 sqm of space, 2 bedrooms, a south-facing balcony, and a lower floor. On August 5, an agent showed them an apartment priced at VND 4.5 billion. Finding the price a bit steep, the couple asked for time to consider their decision. Just two weeks later, the agent informed them that the price had gone up to VND 4.9 billion, equivalent to nearly VND 68 million per sqm.
“A month later, we inquired again, and the agent quoted a price of VND 5.5 billion, a staggering VND 1 billion increase in just one month,” Mrs. Duyen said.
Mr. Tuan, a resident of An Binh apartment building in Bac Tu Liem, shared that in early July 2024, he considered purchasing an additional 112 sqm apartment in the same building, which was listed at VND 6.5 billion. Finding the price too high, he and his wife decided to hold off and explore other options, hoping to find a direct seller.
“I recently learned from a neighbor that the apartment had been sold for VND 7.4 billion. In just two months, the price had increased by VND 1 billion,” Mr. Tuan said.
However, according to Mr. Chung, a fellow resident in Mr. Tuan’s building with extensive experience in real estate, this is often a tactic employed by agents, especially with less qualified buyers. If contacted again after some time, agents may claim that the apartment has been sold or that the price has increased, creating a sense of scarcity and urgency for potential buyers.
This survey reveals that it’s not just agents but also homeowners who are quick to raise their asking prices as the apartment market heats up, making it challenging for genuine buyers to negotiate. As a result, the market is experiencing inflated prices.
Mr. Nguyen Hoang Nam, CEO of G-Home, confirmed that apartment prices in Hanoi have reached new heights in the past year, mirroring the trend in Ho Chi Minh City. For many, this rapid escalation has come as a shock, with some apartments nearly doubling in price within a short period.
Tien Anh
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