The Capital’s Alleyway Property Boom: Intra-Hanoi Real Estate Prices Surge Past 150 Million VND per Square Meter, Matching Suburban Villa Premiums

Inner-City Land Prices Soar, Matching Suburban Villa and Linked House Prices

Due to the desire to move closer to the city center for easier access to work, Mr. Tuan has been frequently browsing real estate websites to find a house in the alleyways.

He came across a house for sale in Kham Thien alley, Dong Da district. The alley is just wide enough for two motorbikes to pass each other, and the house has an area of almost 24 square meters, with an asking price of over VND 3.6 billion, equivalent to VND 150 million per square meter.

“I have been looking to buy a house for almost a month now, and the ones I’ve viewed and liked ranged from VND 150-190 million per square meter. For VND 150 million per square meter, the alley is quite deep, and it’s almost impossible for a car to enter,” shared Mr. Tuan.

In Cau Giay district, Mr. Tuan noted that houses with an area of 25-40 square meters in small alleys, inaccessible to cars, have increased from VND 2.7-4.2 billion per unit to VND 3.2-4.6 billion per unit in a short period.

Ms. Hanh, also from Cau Giay, Hanoi, shared that she initially intended to buy an apartment but was shocked by the rapid price increases. She has now shifted her focus to finding a house in an alleyway.

“I really want to find a suitable house that matches my income, current capital, and, most importantly, fire safety requirements. However, with VND 3 billion in hand, it is challenging for my family to find an appropriate home,” Ms. Hanh confided.

According to a Hanoi real estate consultant, the continuous surge in apartment prices in both the primary and secondary markets has driven many people to turn to land and alley houses. Unlike other segments, the price increase of alley houses in Hanoi tends to be more stable, without drastic fluctuations, making it attractive for investors looking to store assets in the city center.

The growing interest in alley houses has pushed up prices in this segment, even approaching the selling prices of some suburban villas and linked houses.

For example, in the southern gateway area of the capital, the Him Lam Thuong Tin shophouses and linked houses have been completed and are being offered to the market at prices starting from VND 100 million per square meter. In the west, villas and linked houses in the new Lideco urban area on Road 32, Hoai Duc District, Hanoi, are also being advertised at prices from VND 120 million per square meter.

Land Prices Will Not Surge but Will Increase Steadily and Stable

Recently, Mr. Tran Duc Khang, Sales Director of Region 2 at OneHousing, shared his insights into the Hanoi land market over the past time. Mr. Khang believes that finding a house with a budget of VND 3-4 billion in Hanoi’s inner city is very rare.

Specifically, for a moderately sized house in an alley where motorbikes can pass each other, with adequate functionality and an area of 30 square meters, 2-3 bedrooms, the land price alone is already over VND 100 million per square meter. Adding construction costs, the transaction price will exceed VND 4 billion. Therefore, houses in the VND 3-4 billion range, if available, may have issues with feng shui (narrow back, road stabbing), be built on old land with the owner intending to sell the land only, or be located in a very deep alley…

In the suburban areas, houses in alleys are currently trading at around VND 70-80 million per square meter, and even those with corner lots or beautiful lots can fetch over VND 100 million per square meter.

In terms of location, the East and West areas are the focal points of the Hanoi real estate market. Besides the vibrancy in the apartment segment, land transactions in the East and West account for 66% of the Hanoi market in the first half of 2024.

According to data from the OneHousing Market Research Center and Customer Understanding, in August, the West (Cau Giay, Nam Tu Liem, Bac Tu Liem, Ha Dong) led the market with approximately 1,200 transactions (accounting for 36% market share), followed by the East (Gia Lam, Long Bien) with about 1,100 transactions (33% market share).

The West area attracts a large workforce and provides job opportunities similar to the inner-city districts, making it a popular choice for many buyers. Meanwhile, the East area is gaining more attention due to its developing infrastructure and improved living conditions.

On the other hand, there has been a lot of mixed information about real estate price increases in the market recently. However, we must accept the fact that supply is currently lower than demand, and transaction prices reflect this market situation. Customers with money are still looking for opportunities to invest in real estate for fear that the market will set a new peak.