In recent years, leasehold apartments with a 50-year ownership term have gained popularity among customers in Hanoi. Notable examples include The Nosta 90 Duong Lang, Rose Town, MHDI, Phuong Dong Green, and Hasco’s high-rise condominium project in the city.
Evidence suggests that leasehold apartments (typically with a 50-year term) are reasonably priced, accessible to many, highly liquid, and offer attractive investment opportunities. These 50-year leasehold apartments are usually priced 25-30% lower than freehold properties in the same area and segment.
The lower price is due to the developer paying land rent for the entire 50-year lease term, which is approximately 80% of the land use fee for stable, long-term land allocation.
According to a survey, the average price of apartments in the Nguyen Tuan area (Hanoi) is over 100 million VND per square meter. In contrast, leasehold apartments with a 50-year term are advertised at around 70 million VND per square meter, making them a popular choice among homebuyers.
In Ha Dong ward (Hanoi), a project with a 50-year term is priced at approximately 40 million VND per square meter, while freehold apartments in the same development are priced at 65-80 million VND per square meter.
With the soaring prices of apartments in Hanoi, many customers opt for leasehold apartments with a 50-year term to secure a residence in the city center at a reasonable price.
Ms. Dang Anh Hong (from Hai Phong) shared that in early 2024, she and her husband decided to purchase a leasehold apartment to settle down in Hanoi. After exploring several projects, they found some suitable options but faced financial constraints. The couple couldn’t afford properties in the city center.
Leasehold apartments with a 50-year term attract homebuyers. (Illustrative image)
At that time, a real estate broker introduced her to a 50-year leasehold apartment project in Thanh Xuan district. This project consisted of three apartment buildings, two of which had permanent pink books and were priced at around 80 million VND per square meter.
The third building, with a 50-year leasehold, was significantly more affordable, priced at only 55-60 million VND per square meter. Initially intended as an office building, it was later converted by the developer. After discussing it with her husband, Ms. Hong decided to purchase the leasehold apartment.
“In reality, all three buildings share the same project amenities; the only difference is the ownership term. Given our financial situation, we decided to go for the more affordable option for now and consider upgrading later,” said Ms. Hong.
Similarly, Ms. Le Thuy Linh (from Ninh Binh) shared that in late 2024, after much deliberation, she and her husband chose to purchase a 50-year leasehold apartment in Ha Dong.
“In the same project, the freehold building is priced at over 65 million VND per square meter, while the leasehold building is only 40 million VND per square meter. The amenities are the same; only the ownership term differs. Given our current financial situation, we had to opt for the more affordable choice,” shared Ms. Linh.
Mr. Tran Van Doan, a seasoned real estate broker in Hanoi, noted that 50-year leasehold apartments are not as abundant in the market but are highly sought after by homebuyers.
According to Mr. Doan, leasehold apartments within the same development are significantly more affordable than their freehold counterparts.
“Previously, many people were hesitant to purchase this type of apartment. However, in the last three years, with the steep rise in property prices, these leasehold apartments have become more desirable due to their competitive pricing while offering similar amenities and locations as freehold properties,” Mr. Doan explained.
Attracting Buyers with Affordable Prices
Commenting on this trend, Mr. Nguyen The Diep, Vice President of the Hanoi Real Estate Club, acknowledged the price advantage of leasehold apartments but also pointed out the legal complexities that make resale and mortgage more challenging.
Nonetheless, with wages failing to keep up with soaring property prices, this segment is becoming an inevitable choice for many in large cities.
“Many young people view leasehold apartments as a temporary solution, intending to live in them for 20-30 years and then upgrade to a different property. For now, it’s a practical choice that matches their financial capabilities,” Mr. Diep added.
Mr. Giang Anh Tuan, Director of Tuan Anh Real Estate Floor, explained that traditionally, people considered apartments, including leasehold ones, as valuable assets for living, investment, or collateral for business loans.
However, in recent years, the skyrocketing prices of freehold apartments have shifted the focus towards leasehold apartments as a more affordable option.
The price of freehold apartments in Hanoi has reached a high level, currently ranging from 70 to 100 million VND per square meter, double that of three years ago. Some luxury projects even exceed 110 million VND per square meter, far beyond the reach of most buyers.
In contrast, leasehold apartments with a 50-year term are 20-30 million VND per square meter cheaper, making them a popular choice for young families.
“Many people just want a stable place to live without the constant worry of moving. These 50-year leasehold apartments offer that stability within their financial means,” Mr. Tuan concluded.
