Vietnam.vn - Nền tảng quảng bá Việt Nam

Are apartments no longer assets that depreciate over time?

Công LuậnCông Luận01/07/2023


Old concepts are outdated

In the past, buying a condominium was often considered an unsafe form of investment, as the condominium was often considered a consumable asset that depreciated over time. However, in recent years, this concept has become outdated and no longer reflects reality. On the contrary, condominiums used for many years have now become an attractive investment option, allowing owners to earn significant profits when reselling.

For example, in Hanoi , some apartments in An Khanh commune, Hoai Duc district were opened for sale in the period 2015-2017, priced at only about 17 million/m2. Each 2-bedroom apartment with an area of about 60m2 costs only more than 1 billion VND depending on the floor and location. However, after many years of use, apartments in the above projects are being sold at prices about 60% higher.

According to Ms. Nguyen Phuong Thao - the owner of an apartment in the Gemek 2 project located on Le Trong Tan street, when she bought a house here, there was almost no infrastructure, the residents were very deserted, so the house price was not too expensive at that time. After 7 years of use, her apartment is currently being asked to buy for 1.7 billion VND.

“Many people have asked to buy for 1.7 - 1.8 billion VND, but I have not sold yet because this area is convenient for work, and my child is also studying nearby. However, recently, many people living in the same building as me have sold their apartments at the above price. If we calculate the profit rate, the apartments here are making a profit of nearly 70%, not counting the time used or rented out,” Ms. Thao shared.

Use for a long time and you will still have the apartment, not the product that depreciates over time, image 1

Apartments used for nearly 10 years still bring profits to the owners.

According to Ms. Ha Anh, the owner of a 2-bedroom apartment in the Krista project on Nguyen Duy Trinh Street (Thu Duc City, Ho Chi Minh City), this apartment was purchased for more than 2 billion VND in 2015. However, recently, many real estate brokerage companies have contacted and consulted the need to sell the apartment for 3.2 billion VND. Although the apartment is quite far from her workplace, Ms. Ha Anh said she has no need to sell at the present time.

“I have consulted many places, now if I sell it, it will be very difficult to buy another apartment in this area at that price. If I want to buy a house and still have profit to spend, I have to go to areas like District 9 or Binh Chanh, Nha Be. But it is not convenient for work, so even though I know it will be profitable, I cannot sell it,” said Ms. Ha Anh.

The increase in prices of used apartments does not only happen in affordable projects. It is noted that in some high-end projects, many apartments have also increased in price, even many times higher than the primary price even though they have been used for 6-8 years. For example, at the Estella Heights project, the opening price was about 36 million VND/m2, but recently, many posts on real estate markets show that 180m2 apartments are being sold for more than 120 million VND/m2.

Use for a long time and you will still have the apartment, not the product that depreciates over time, image 2

Apartments at Estella are being sold for nearly four times the opening price eight years ago.

Why old apartments have increased in price

The real estate market has been growing strongly in recent years, especially in big cities. The increase in land prices and the scarcity of apartment supply have contributed to the increase in the value of long-term apartments. Thanks to this trend, investors have recognized the potential for price increase of apartments and are willing to hold them for a long time to achieve higher profits.

More specifically, for apartments in suburban and suburban areas, the development of infrastructure and surrounding amenities is an important factor that makes this apartment. Public projects such as schools, hospitals, parks, and commercial centers are built near the apartment area, creating favorable conditions for the daily life of residents. This has increased the value of the apartment and supported the resale at a higher price.

As for apartments in the mid-range and high-end segments, limited supply, competition in quality, location and project branding also push up apartment prices. However, for apartments in this segment, having liquidity with such "sky-high" prices at a time when the real estate market is struggling is also a difficult problem for investors who own apartments.

In addition, the cost of living, inflation over the years along with increasing demand also push up apartment prices. In addition, current apartments are built with higher quality requirements, more stringent than before, so the rapid deterioration of apartments in the first few years of use is less common. This has limited the depreciation of apartments after use.

Use for a long time and you will still have the apartment, not the product that depreciates over time, image 3

Buying a house in an apartment in an area with underdeveloped infrastructure is a way to increase the price of the apartment in the future.

It is clear that the notion that apartments are assets that depreciate over time has become outdated. Instead, apartments have become an attractive form of investment and bring profits to investors through the increase in real estate value, infrastructure development and surrounding amenities.

However, there is a problem that the profit can be seen through the house price, but in reality, the owners of apartments bought for real housing needs do not have the need to sell. Because with the general increase in market prices, the amount of money from selling an apartment, although it is profitable, is not enough to own another apartment in the same location.

Many experts believe that in the coming period, when the market solves the supply problem, especially in the affordable price segment suitable for real housing needs, apartment prices will have a period of stagnation.



Source

Comment (0)

No data
No data
Lotus blooming season attracts tourists to the majestic mountains and rivers of Ninh Binh
Cu Lao Mai Nha: Where wildness, majesty and peace blend together
Hanoi is strange before storm Wipha makes landfall
Lost in the wild world at the bird garden in Ninh Binh
Pu Luong terraced fields in the pouring water season are breathtakingly beautiful
Asphalt carpets 'sprint' on North-South highway through Gia Lai
PIECES of HUE - Pieces of Hue
Magical scene on the 'upside down bowl' tea hill in Phu Tho
3 islands in the Central region are likened to Maldives, attracting tourists in the summer
Watch the sparkling Quy Nhon coastal city of Gia Lai at night

Heritage

Figure

Business

No videos available

News

Political System

Local

Product