At the end of the year, land and houses in Hanoi suddenly increased in price.

VTC News•03/01/2024

According to Mr. Tran Van Linh, a real estate broker in the Hai Ba Trung district of Hanoi , the market for residential properties has become active again in the past month, with many interested buyers finalizing deals. This has led to price increases for many properties.

According to Mr. Linh, the "fever" in 2021 and 2022 pushed Hanoi's land prices too high, causing the market to "freeze" for more than a year. Land prices have now adjusted, with many houses in alleys and side streets seeing a 10-20% decrease compared to the peak period.

However, towards the end of this year, this segment has seen a remarkable recovery, surprising many. For over a month now, Mr. Linh has sold a house with land almost every week.

" Apartments priced between 2 and 3 billion VND, with an area of 20-30 square meters, are still attracting customer interest. Apartments priced at 5 billion VND or more are harder to sell because they attract buyers with strong financial resources ," Linh said.

Many houses and land plots in Hanoi are seeing price increases due to high buyer interest. (Illustrative photo: Chau Anh).

According to Linh, the segment of residential land and houses is mainly for buyers with real needs, so as long as the price is reasonable, the market will always have buyers.

Mr. Linh revealed that for almost a year, he hadn't sold any real estate properties, but in just over a month at the end of the year, he closed deals on 5 properties in the Hai Ba Trung district.

“ I was also surprised that buyers started returning to the market towards the end of the year. Houses in good locations with reasonable prices usually get inquiries as soon as they go on the market ,” Linh shared.

Notably, after a period of stagnant and even declining prices, many homeowners took advantage of the year-end market boom to increase their selling prices.

For example, a house of over 32 square meters in alley 479 Linh Nam, which the owner listed for sale in November for only 3.4 billion VND, has now been adjusted to 3.55 billion VND.

For example, a 34m2, 5-story house in alley 193 Nam Du also saw its price increase from 3.45 billion VND to 3.55 billion VND. A 30m2 house in alley 110 Nam Du increased from 4.5 billion VND to 4.85 billion VND.

According to Ms. Pham Thi Tan, a real estate agent in Hoang Mai district, since lending interest rates have tended to decrease, many customers have once again expressed a desire to buy houses as a way to preserve their money.

While the price of residential land doesn't fluctuate as much as that of project land, it offers good potential for appreciation, significant rental income, and is very easy to sell when cash is needed.

According to Ms. Tan, for nearly two months now, many houses that owners had previously asked her to sell have seen price increases of 50-200 million VND. However, these are usually houses priced under 4 billion VND, as this segment is currently in high demand. Houses with higher values, on the other hand, have remained unchanged in price.

" The current price of apartments is around 3 billion VND, and they are located far from the city center, while houses and land in alleys are in a similar price range, so the segment of houses and land is currently attracting buyers ," Ms. Tan said.

Mr. Giang Anh Tuan, Director of Tuan Anh Real Estate Agency, said that while from mid-2022 to mid-2023, his agency only had one or two transactions per month, for the past month or so, the number of transactions has improved significantly, with dozens of properties successfully sold.

" The advantage of owning land and houses is that the customer base consists of people with real needs, so even when the overall market is sluggish, this segment still sees transactions ," Mr. Tuan commented.

Sharing the same view, Mr. Do Ngoc Thang, Regional Sales Director at OneHousing, said that the residential land segment in Hanoi's inner city has historically been largely unaffected by upward or downward market trends.

In the inner city, land is scarce but the population continues to grow, and most importantly, the demand is genuine – for housing, investment, business, and rental purposes. Therefore, real estate prices in the inner city, including the private house segment, remain relatively stable.

" Currently, the period from now until the end of the year is the most active time for residential real estate transactions, which is also consistent with usual practice. However, the most important thing for buyers when participating in the market is to thoroughly research and identify potential risks ," Mr. Thang emphasized.

Ms. Do Thu Hang, Senior Director, Research Department, Savills Hanoi, commented that residential land is an affordable segment, always in short supply, and sellers rarely use financial leverage.

According to the latest report from Batdongsan.com.vn, while many segments of the real estate market are still slowing down, residential real estate, specifically the private house segment in Hanoi, continues to record growth.
Accordingly, compared to Q2/2023, the selling price and level of interest in private houses located in alleys within Hanoi's inner districts increased by 2-9%. Of these, the highest increase was in Tay Ho district, at 9%, while private houses in other districts such as Dong Da, Ha Dong, Hai Ba Trung, and Hoang Mai saw price increases of 4-8%.
Not only have asking prices increased, but interest in the Hanoi detached house segment has also risen by an average of 2-3% compared to Q2/2023.

Chau Anh

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