Mr. Nguyen Hung (in Dong Da) has just finalized the purchase of a 40 sqm land with 3.5 floors construction, with a price of 3.5 billion VND in a small alley on Tran Dien Street, Dong Da district.
Mr. Hung said: “My family does not need to buy a house in the alley because there is no parking space. But after half a year of looking for an apartment without success due to high prices, I had to accept buying a house on the ground. Although there are inconveniences compared to apartments, there is no other choice. The advantage of a house in the alley is its proximity to our workplace.”
Houses in the alleys priced from 3 to 5 billion VND in the central districts are “in high demand”.
Mr. Hung said he had surveyed dozens of apartments that were already in use as well as newly-built apartments, and found that the prices of apartments were too expensive.
“For example, a project in Tay Mo ward, Nam Tu Liem district that has just started construction, the original price when booking a house was around 66 million VND / sqm, excluding VAT. If we include the apartment price tax, the price can go up to 72 million VND / sqm. Therefore, a 2-bedroom apartment with an area of about 74 sqm has a selling price of about 5.3 billion VND. The prices of used apartments around Thanh Xuan and Dong Da areas that have been used for 5-7 years are also over 5 billion VND. While the price of the house, although with an area of only 40 sqm, but multiplied by 3 floors, which means it has a total usable area of over 100 sqm, and it is much cheaper compared to apartments,” Mr. Hung said.
Ms. Ngoc Tam, a real estate broker specializing in houses in Hanoi, said that for the past two months, there have been continuous inquiries and interests in the alley house segment. One week, Ms. Tram brought nearly ten people to see the houses. With nearly 4 years of experience as a broker, she said that the amount of interest and transactions focused on small-sized houses from 30 to 45 sqm, priced below 5 billion VND, located in the alleys of Ha Dong, Hoang Mai, Hai Ba Trung, Dong Da districts… Any newly-built house with a good price and location that is not affected by urban planning or feng shui issues, and with available title deeds, can easily find buyers even when just newly listed.
“Although the transaction volume is not as high as during the bustling market period, houses in the alleys of central districts still draw a lot of inquiries, especially for the 3-5 billion VND segment,” Ms. Tam said.
A recent report from the Batdongsan channel showed that while many real estate segments are experiencing a slowdown, residential land in Hanoi continues to record growth. The selling prices and level of interest in this segment have increased by 2 – 9% compared to the same period last year. In which, detached houses in Tay Ho district saw the strongest price increase with 9%. Other districts such as Dong Da, Ha Dong, Hai Ba Trung, Hoang Mai also saw price increases of 4-8%.
A survey conducted by this channel with real estate brokers in residential land sector also showed that the 3 to 5 billion VND segment for detached houses in Hanoi is currently performing the best.
