At the end of the year, Hanoi residential land prices suddenly increased

Mr. Tran Van Linh, a real estate broker in Hai Ba Trung district ( Hanoi ) informed that over the past month, the residential real estate market has started to become active again when many customers are interested and have decided on prices. This has helped many houses to be adjusted to increase in price compared to before.

According to Mr. Linh, the "fever" in 2021 and 2022 has pushed Hanoi land prices too high, causing the market to "freeze" for more than a year. Land prices have now been adjusted, many residential houses in alleys and lanes have decreased by 10 - 20% compared to the fever period.

However, at the end of this year, this segment has clearly recovered, surprising many people. For more than a month now, Mr. Linh has sold a house and land almost every week.

" Apartments priced at 2-3 billion VND, with an area of 20-30 square meters, are still of interest to customers. Apartments priced at 5 billion VND or more are harder to sell because they are not suitable for customers with strong financial resources ," said Mr. Linh.

Many residential land plots in Hanoi have increased in price due to interest from customers. (Illustration: Chau Anh).

According to Mr. Linh, the residential real estate segment 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 nearly a year, he almost did not sell any real estate products, but in just over a month at the end of the year, he closed 5 properties in Hai Ba Trung district.

“ I was also surprised when buyers started returning to the market at the end of the year. Houses with good locations and reasonable prices often have customers asking right away as soon as they are put on the market ,” Linh shared.

It is worth mentioning that after a period of price stagnation and downward trend, at the end of the year when the market is more active, many homeowners have taken the opportunity to increase selling prices.

For example, a house of more than 32 square meters in lane 479 Linh Nam was advertised for sale by the owner in November for only 3.4 billion VND, but has now been adjusted to 3.55 billion VND.

Or a house in lane 193 Nam Du, 34m2, 5 floors, also increased in price from 3.45 billion VND to 3.55 billion VND. A house in lane 110 Nam Du, 30m2, increased from 4.5 billion VND to 4.85 billion VND.

According to Ms. Pham Thi Tan, a real estate broker in Hoang Mai district, since loan interest rates have tended to decrease, many customers have had the need to buy houses again to keep money.

Although the price of residential land does not fluctuate as much as project land, it has a good rate of price increase, great potential for renting and is very easy to sell when money is needed.

According to Ms. Tan, in the past 2 months, many houses that the owners had previously sold have increased in price by 50-200 million VND. However, these are usually houses priced under 4 billion VND because many people are currently looking to buy this segment. As for houses with high value, the price remains the same.

" The current price of an apartment is around 3 billion VND, but the location is still far from the center, while residential land in the alley is also around the same price, so the residential land segment is currently attracting customers ," said Ms. Tan.

Mr. Giang Anh Tuan, Director of Tuan Anh Real Estate Floor, said that if from mid-2022 to mid-2023, his floor only had one or two transactions a month, then for more than a month now, the transaction volume has improved significantly with dozens of products successfully sold.

“ Residential real estate has the advantage of having customers who have real needs, so even though the general market is sluggish, this segment still has transactions ,” said Mr. Tuan.

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 not been affected much by market trends of increase or decrease.

The inner city is a place where land funds cannot be expanded further but the population is still increasing and the most important demand is the real demand for housing, investment, business, rental... Therefore, the price of inner city real estate, including the private house segment, is almost unchanged.

" Currently, until the end of the year, residential real estate transactions are the most active, which is also in line with tradition. However, the most important thing for buyers when entering the market is to research carefully to identify the risks they may encounter ," Mr. Thang emphasized.

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

The latest report from Batdongsan.com.vn shows that 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, private houses located in alleys in Hanoi's inner city districts, compared to the second quarter of 2023, have increased in price and interest by 2 - 9%. In particular, private house prices in Tay Ho district increased the most by 9%, private houses in the remaining districts of Dong Da, Ha Dong, Hai Ba Trung, Hoang Mai had a price increase of 4 - 8%.
Not only did the asking price increase, but the level of interest in the Hanoi private housing segment also increased by an average of 2-3% compared to the second quarter of 2023.

Chau Anh

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