Expert: Hanoi's soaring real estate prices cause many consequences

(Dan Tri) - Experts say that the rapid increase in real estate prices in Hanoi has many causes, including low supply and high demand. This is not good for the market, there is a deviation in supply, poor quality, and mainly serves speculation.

At the event this morning (November 8) held in Ho Chi Minh City, Mr. Vo Huynh Tuan Kiet - Director of CBRE Vietnam's Housing Marketing Department - said that within the next 1-2 quarters, the apartment price level in Hanoi could surpass Ho Chi Minh City. The average price level in the secondary market is similar.

Mr. Kiet said that 3-5 years ago, the average price of apartments in Ho Chi Minh City was 15-20% higher than in Hanoi. However, this gap has now narrowed to about 4-5%. The current price of apartments in Hanoi is 64 million VND/m2, up 26% over the same period last year, while in Ho Chi Minh City it is 66 million VND/m2, up 8%.

Along with prices, the absorption rate of apartments in Hanoi is also improving. 5-6 years ago, the absorption rate was only 40-50% but now it has increased to 80-90%.

Apartment prices in Hanoi are about to catch up with those in Ho Chi Minh City (Illustration: Trinh Nguyen).

Talking about the recent fluctuations in real estate prices in Hanoi, some experts say that it is unusual, causing many consequences and not good for the general market.

Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association - explained that in the past 5 years, real estate prices have increased sharply and reached their peak in Ho Chi Minh City. In the North, during the same period, infrastructure has been heavily invested, creating momentum for economic growth, leading to real estate development. Investment demand and housing demand have also increased.

Meanwhile, Hanoi leads the way in having no new projects approved in the past five years. Scarce supply and high demand have pushed prices up in suburban areas, especially at auctions.

Mr. Dinh said that this is not a good sign for the market, there is a deviation in supply, weak quality, mainly serving speculation, there are no projects serving the real needs of the people and the investment needs of small investors. Therefore, the market has not developed in quality, policies have not really stimulated low-cost housing and social housing.

Mr. Dinh commented that the high price increase has caused difficulties for people to access housing, increased production investment costs, and made it difficult for genuine investors to access land resources. Therefore, the Government is also taking appropriate regulatory measures.

Ms. Nguyen Thi Van Khanh - Deputy General Director of Gamuda Land - said that high prices do not benefit anyone, including investors and buyers. According to Ms. Van, high prices come from increased input factors, such as land use fees according to the new land price list. If prices are too high for people to pay, demand will be affected.

She advised buyers that the purchase price must be commensurate with the value of the project, such as the investor's reputation and the project's legality. At this time, buyers must be very careful, the supply is expected to have more projects, so calmly choose the right product. In particular, buyers have the right to challenge the investor with the question: Does the project have a sales license before signing the 5% deposit?

Source: https://dantri.com.vn/bat-dong-san/chuyen-gia-gia-nha-dat-ha-noi-tang-nong-gay-nhieu-he-luy-20241108150648738.htm