Inner-city apartments in Vinh city increase in price sharply, supply is low

An apartment project on Phan Boi Chau Street, Vinh City with 500 rooms is in the final stages of completion but all rooms have been booked. Photo: Van Truong

At this time, an apartment project on Phan Boi Chau Street, Vinh City has completed the rough construction, is in the process of completion, but currently customers have booked all the apartments. The representative of this project said: This apartment project started construction in October 2022, expected to be put into use in May 2024, the 26-storey apartment building has over 500 rooms, but up to this point, 100% of the rooms have been booked by customers, the price is over 20 million VND/ ^m2 .

At another apartment building on Mai Hac De Street, Vinh City, which is in the process of completion, with a scale of 120 rooms, many apartments have been reserved by customers at a price of 20 million VND/ ^m2 .

Mr. Nguyen Ngoc Tuan, living in Vinh City, said: “For a long time, my husband and I have been renting a place to live. Due to our limited financial situation, we did not have enough money to buy land to build a house, so we decided to borrow money to buy a new apartment of 70 ^m2 / 1.4 billion VND. Living in an apartment is also convenient because it is close to welfare facilities such as schools, markets, supermarkets, and entertainment areas, so it is convenient for families with small children ...”.

Due to the scarcity of new apartments in Vinh City, many customers are now rushing to "hunt" for old apartments. Ms. Le Thi Huyen in Nghi Lam Commune, Nghi Loc District, who works at a car dealership in Vinh City, shared: It has been very difficult to "hunt" for old apartments since Tet, she had to ask friends to search and introduce, then she found an apartment at Vinhomes Quang Trung with a fairly high price of 29.5 million VND/ ^m2 , (2 years ago the previous owner bought it for 23 million VND/ ^m2 ).

Old apartments are quite easy to trade but few people sell in Vinh City. Photo: Van Truong

According to an apartment broker in Vinh City, the demand for buying used apartments has increased sharply in the past 2 years, especially projects near schools or agencies and offices. Whenever there is an additional apartment for sale, people flock to see it. The price of old apartments is currently increasing rapidly. Specifically, through a survey, the current price of apartments invested in and renovated by VinGroup in Quang Trung has increased from 21 million VND/ ^m2 in 2021 to 29.5 million VND/ ^m2 .

Next to it is the resettlement apartment project for households in Quang Trung ward, which in 2021 cost 14 million VND/ ^m2 , now increased to 23 million VND/ ^m2 . Other apartment projects in Vinh Tan, Trung Do, and Le Loi wards previously cost 16 million VND/ ^m2 , now cost 21-23 million VND/ ^m2 ... but there are still no rooms left to sell; most of the products sold are from households who previously ordered and now resell.

The survey shows that the market for apartment buildings has increased in price, but in fact, only apartment buildings in the inner city areas such as wards: Quang Trung, Le Loi, Hong Son, Hung Dung, Truong Thi... with clear legal documents and records, good social infrastructure such as being close to markets, schools, parking spaces, and playgrounds have increased sharply. On the contrary, apartment buildings far from the center and in the suburbs have only increased slightly in price.

Apartments on Quang Trung Street cost 14 million VND/m2 in 2021, now the price has increased to 22 million VND/m2. Photo: Van Truong

Mr. Nguyen The Phiet - Head of Housing and Real Estate Market Management Department, Nghe An Department of Construction said: Currently, Vinh city is implementing the construction of old apartment projects that were approved by the Provincial People's Committee for investment and construction in previous years. These projects are concentrated in Quan Bau and Quang Trung wards... currently all have achieved construction progress of over 90% (completion stage), expected to supply about 700 apartments by May 2024.

In the coming years, it is forecasted that the supply of new apartments will become increasingly scarce because no new apartment projects will be invested in Vinh City because the province has not approved the policy, in order to preserve the architectural landscape and reduce pressure on the inner city.

Source: https://baonghean.vn/chung-cu-noi-do-o-thanh-pho-vinh-tang-gia-manh-nguon-cung-it-post286729.html