Expert: Real estate prices increase sharply in a short period of time is unusual

(Dan Tri) - Experts say that the trend of increasing real estate prices is inevitable. The price increase in a short period of time is unusual. According to experts, this is influenced by interest groups.

Apartment selling price increased by hundreds of millions of dong after one month

Data from a real estate market research unit shows that the apartment market in Hanoi from the beginning of the year until now has only had one "quiet period" in April and May, the rest of the year has recorded an upward trend in selling prices, especially increasing in the last months of the year.

According to the report of the Ministry of Construction , apartment prices in Hanoi continue to increase in both new and old projects. Specifically, the average price of apartments in new projects has increased by about 4-6% per quarter and 22-25% per year. The selling price of old apartments has also increased, especially in some areas, increasing locally by about 35% to 40% depending on the location compared to the previous quarter.

Some projects such as Ecolife Tay Ho have a selling price of about 72.6 million VND/m2; Sunshine Garden (Hai Ba Trung) has a selling price of about 54.2 million VND/m2; Chelsea Park (Cau Giay district) has a selling price of about 62.3 million VND/m2; Trang An Complex (Cau Giay district) has a selling price of about 70.8 million VND/m2.

In Thanh Xuan district, the price of apartments in the Riverside Garden project (Thanh Xuan) is about 56.9 million VND/m2; Legend Tower is about 71.7 million VND/m2. Anland LakeView project (Ha Dong district) is about 60.5 million VND/m2; Imperia Smart City project (Nam Tu Liem district) is about 62.1 million VND/m2.

In the past month, many apartments have increased in price by hundreds of millions of dong despite not finding new owners. For example, a 59m2 apartment with 2 bedrooms in a project in Nam Tu Liem district was put up for sale at the beginning of October for 3.6 billion dong, equivalent to 61 million dong/m2. However, up to now, this apartment is still put up for sale at 3.8 billion dong, equivalent to nearly 64.5 million dong/m2.

An apartment building in Hanoi (Photo: Tran Khang).

Mr. Khang (Hoang Mai, Hanoi) said that in the past 3 months, his family has gone to see many apartments with the hope of buying them at a reasonable price. However, the more Mr. Khang searched, the more he saw the apartment prices increase.

According to him, at the end of September, he saw an apartment on Giai Phong Street with an area of ​​78 square meters, designed with 2 bedrooms, for sale at 4.3 billion VND. However, because he could not negotiate down to 4.1 billion VND, he continued to look for another project.

"Recently, the broker invited me to buy this apartment again but the price has increased to 4.7 billion VND. In just over a month, the apartment has increased to 300 million VND," he said.

Expert: Real estate prices growing strongly in a very short time is unusual

Sharing about the price of apartments in the current period, Ms. Nguyen Hoai An, Senior Director of CBRE Hanoi branch said: "This is almost the first time that Hanoi apartments have increased in price so quickly in such a short time."

According to her, historical analysis shows that over the past 10 years, apartment prices in Hanoi have increased by an average of 5% per year. Even in the period 2009-2019, apartment prices fluctuated little, with periods of price reduction and an average increase of only 2% per year. From 2022 until now, apartment prices in this city have only begun to increase rapidly.

Mr. Le Dinh Chung, a real estate expert, said that the trend of increasing real estate prices is inevitable. However, the fact that real estate prices have grown strongly in a very short time is unusual.

"Real estate prices are rising, mainly because supply, although improved, is still very scarce compared to demand. Investment costs are rising, causing investors to have higher expectations for profits," said Mr. Chung.

Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), assessed that apartment prices have increased abnormally in the recent period, especially in Hanoi.

He believes that this phenomenon is certainly influenced by interest groups while the economic context, the market as well as people's income have not recovered. "Housing prices are high, but transactions are not appearing, this could be a trick of an investment group with unclear purposes," Mr. Dinh frankly assessed.

According to him, these interest groups are able to carry out price-inflating tricks based on the fact that the supply of apartments is problematic. In recent years, the market has not had any new projects approved for investment licenses. Projects on the market are mainly old projects and are bought and sold again. The supply is both lacking and of poor quality, the supply for people and low-income people is very little, and the product structure is not suitable.

Source: https://dantri.com.vn/bat-dong-san/chuyen-gia-gia-bat-dong-san-tang-manh-trong-thoi-gian-ngan-la-bat-thuong-20241105154126796.htm