My family has lived in a small alley in My Dinh, Hanoi, for many years. Back in March, our neighbors across the street sold their 42-square-meter house for 5.5 billion VND due to financial losses. After the sale, they moved out, and I rarely saw the new owners; I only knew that workers came to renovate the house every day.
Initially, I assumed that the new owners were planning to move in after the renovations, as the house was quite old and needed a fresh look. However, after two months of intensive work, the house was transformed, and I realized that the new owners were not planning to live there but were investors.
With the new owner’s touch, the house underwent a remarkable transformation. The exterior was painted, giving it a fresh and bright appearance, while the interior was refurbished with new furniture and greenery. What was once an ordinary house now stood out and caught the eye of passersby.
But what surprised me and my neighbors the most was the incredible increase in the house’s value after its makeover. The new owners listed the property for 8.5 billion VND, a significant jump from the previous selling price.
I wondered who would buy a house located in an alley, inaccessible by car, and with only 40 square meters of space for such a high price. To my surprise, there were many interested parties, and the house was eventually sold for a rounded-up price of 8 billion VND.
 The rising trend of apartment prices in Hanoi has also impacted the values of houses located in alleys. Photo: Hong Khanh |
Before we could catch our breath, we heard that the new owner was also an investor, and the house was put back on the market for a staggering 10 billion VND. In just a few short months, the price had doubled from the original 5.5 billion VND, and the house had changed hands twice.
We, the old neighbors, were astounded. None of us expected such a rapid increase in property values within such a short period. A house located in a small alley, inaccessible by car, now had a price tag of 10 billion VND, a figure I had only associated with houses on the main street.
However, this time, the sale seemed to be more challenging. The owner had been trying to sell for a few months without success. Although there were still potential buyers coming to view the property, the high price seemed to be a significant deterrent. Some even consulted with us, the old neighbors, to get a sense of the property’s value. They agreed that the house looked attractive and well-presented but felt the price was too high.
In recent times, there has been much talk about rising apartment prices and land values. Some attribute it to inflation, limited supply, or herd mentality. But from the story of this house in our alley, it is evident that speculative activities and quick reselling within a short period significantly impact price increases.
When the market heats up, it attracts speculators who buy properties, renovate them superficially, and then sell them for a profit. With each transaction, the price is inflated, pushing it further away from its actual value. Unsuspecting buyers, attracted by the house’s shiny exterior, may end up overpaying without realizing that it is an old property that has changed hands multiple times and been cosmetically enhanced.
It is essential for buyers to conduct thorough research and not be swayed solely by a property’s outward appearance. Failing to investigate properly could result in paying an inflated price, and the shiny new exterior may hide underlying issues with the older structure.
Hong Van (Hanoi)
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