Accepting to buy a house "without a certificate" because of limited finances and high house prices

Reluctantly had to find a house without a red book

Having been following the real estate market for a long time, Mr. Nguyen Van Tu (from Bac Giang ) and his wife noticed that house prices in Hanoi are increasing rapidly, almost every month is much higher than the previous month. They planned to buy a house in 2025, but because they were afraid that the price increase trend would continue, they decided to buy a house earlier than expected.

It is worth mentioning that after about 3 months of searching for an apartment on the secondary market, Mr. Tu almost fell into a deadlock because there was no apartment suitable for his family's financial level of 1.6 billion VND.

He said that although he had determined that the apartment price would be high, he did not think it would be that high. A 10-year-old apartment in Nam Tu Liem district with an area of about 60 square meters was offered for sale at a price of more than 3.2 billion VND, equivalent to more than 53 million VND/square meter. This price was far beyond the financial capacity of Mr. Tu and his wife.

Faced with the skyrocketing price of apartments, the couple decided to look for apartments without a pink book. In mid-August, the family decided to buy a 67m2 apartment with 2 bedrooms for 2.2 billion VND, equivalent to 33 million VND/m2 in HH Linh Dam (Hoang Mai, Hanoi ). The couple borrowed the remaining amount from relatives and paid it back gradually.

According to him, although he knows that buying an apartment without a pink book can only be done by a sales contract, there will be legal risks, but because the project has the lowest price at present, he accepts it. In the short term, he will have a place to live in Hanoi without having to rent a house.

Similarly, Mr. Pham Cong (from Nam Dinh ) said that his family has completed the purchase of a 3-storey house without a red book located in an alley with a floor area of 25m2 in Dinh Cong (Hoang Mai, Hanoi) for 1.6 billion.

With limited financial resources, some people choose to buy houses without certificates, regardless of legal risks (Photo: Ha Phong).

He said he has been working in Hanoi for more than 10 years, but the longer he waits to have enough money, the higher the house prices become. With the little money his family has no choice but to look for a house without a red book, even though they know there will be legal risks. Only then will his family save 10 million VND per month on rent and have a place to live in Hanoi.

Hanoi apartment prices increase rapidly

The Ministry of Construction said that apartment prices increased not only in newly opened projects but also in many old apartments that have been used for many years. In the second quarter of this year, apartment prices increased by an average of 5-6.5% compared to the previous quarter and increased by 25% compared to the same period last year.

In Hanoi, the selling price of some apartment projects on the market increased sharply, specifically in urban areas such as Royal City increased by 33%; The Pride 33%, My Dinh Song Da - Sudico increased by 32%; Vinhomes West Point increased by 28%. Some old urban areas such as Trung Hoa - Nhan Chinh urban area, apartment prices also increased by 25%; resettlement apartment area in Nam Trung Yen increased by 20%.

Data from research firm CBRE also shows that in the second quarter, the average selling price of apartments in Hanoi was approximately VND60 million/m2 (excluding VAT and maintenance fees). This level increased by 6.5% year-on-year and nearly 25% compared to the same period last year.

According to Mr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS), the reason for the high price of old and new apartments in Hanoi is that the supply is decreasing, especially in the low-cost and affordable segments. Meanwhile, the demand for housing of the people is increasing. At the same time, input costs such as construction materials, capital, labor, etc. are increasing, making it difficult for housing prices to decrease in the short term.

He said that in the context of supply congestion, individuals and businesses with goods will have an advantage in raising prices. It is inevitable that sellers will raise prices when apartments or any goods are scarce on the market. However, in reality, buying an apartment without a red book/pink book can cause many risks for buyers. Therefore, before paying, home buyers need to carefully consider legal factors.

Source: https://dantri.com.vn/bat-dong-san/chap-nhan-mua-nha-khong-so-vi-tai-chinh-han-hep-gia-nha-thi-tang-cao-20240829021503853.htm