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

(Dan Tri Newspaper) - Experts believe that the upward trend in real estate prices is inevitable. However, price increases in a short period of time are unusual. According to experts, this is influenced by vested interests.

Apartment asking prices increased by hundreds of millions of dong in just one month.

According to data from a real estate market research firm, the Hanoi apartment market has only experienced one "lull" since the beginning of the year, which occurred in April and May. Throughout the rest of the year, prices have consistently trended upwards, particularly in the final months of the year.

According to a report by the Ministry of Construction , apartment prices in Hanoi continue to rise in both new and old projects. Specifically, the average price of apartments in new projects has increased by approximately 4-6% quarterly and 22-25% annually. Prices of older apartments have also increased, with some areas experiencing localized increases of around 35% to 40% depending on location compared to the previous quarter.

Some projects such as Ecolife Tay Ho have selling prices of approximately 72.6 million VND/m2; Sunshine Garden (Hai Ba Trung district) is priced at approximately 54.2 million VND/m2; Chelsea Park (Cau Giay district) is priced at approximately 62.3 million VND/m2; and Trang An Complex (Cau Giay district) is priced at approximately 70.8 million VND/m2.

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

Over the past month, many apartments, even those yet to find new owners, have seen price increases of hundreds of millions of dong. For example, a 59m2, two-bedroom apartment in a project in Nam Tu Liem district was listed for sale at 3.6 billion dong at the beginning of October, equivalent to 61 million dong/m2. However, the same apartment is now being offered 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 three months, his family has viewed many apartments hoping to buy one at a reasonable price. However, the more he searched, the more he found that the asking prices for apartments were increasing.

According to him, at the end of September he viewed an apartment on Giai Phong Street with an area of ​​78m2 and a 2-bedroom design, which was advertised for sale at 4.3 billion VND. However, because he couldn't negotiate the price down to 4.1 billion VND, he continued searching in other projects.

"Recently, a real estate agent offered me this apartment again, but the price had gone up to 4.7 billion VND. In just over a month, the apartment's value has increased by 300 million VND," he said.

Experts: The rapid increase in real estate prices over a very short period of time is unusual.

Sharing her thoughts on recent apartment prices, Ms. Nguyen Hoai An, Senior Director of CBRE Hanoi branch, said: "This is almost the first time that apartment prices in Hanoi have increased so rapidly in such a short period."

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 during the period from 2009 to 2019, apartment prices remained relatively stable, with periods of price decreases and an average increase of only 2% per year. Only from 2022 onwards have apartment prices in the city begun to rise rapidly.

According to real estate expert Le Dinh Chung, the upward trend in real estate prices is inevitable. However, the sharp increase in real estate prices over a very short period is unusual.

"Real estate prices are rising, mainly because although supply has improved, it is still very scarce compared to demand. Investment costs have increased, leading developers to have higher profit expectations," Mr. Chung said.

Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS), assessed that apartment prices have increased abnormally recently, especially in Hanoi.

He believes that this phenomenon is certainly influenced by vested interests while the economic context, market conditions, and people's incomes have not yet recovered. "House prices are soaring, but transactions are not happening. This could be some kind of trick by a group of investors with ulterior motives," Mr. Dinh frankly assessed.

According to him, these interest groups are able to manipulate prices because of the reality that the supply of apartment units is problematic. In recent years, the market has seen no new projects approved for investment. The projects on the market are mainly old projects that have been bought and sold repeatedly. The supply is both insufficient and of poor quality, with very little supply for the general public and low-income earners, and the product structure is unsuitable.

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