Investing in apartments is becoming the choice of many people with idle money because the price of this segment is constantly increasing.
Mr. Tran Van Tien (Hoang Mai, Hanoi ) shared that when he saw the sharp increase in apartment prices, at the end of 2023, he and his wife decided to buy a 70m2 apartment on Ngoc Hoi Street (Hoang Mai, Hanoi) for 2.7 billion VND. Only 3 months later, Mr. Tien was surprised to see that the selling price of a similar apartment in the apartment project he had just bought had increased by 300 million VND.
" Currently, apartments with similar locations and areas to the one I bought are being offered for sale at prices ranging from 3 to 3.1 billion VND. I was very surprised because when I bought this apartment, I saw that the price was quite high, but I didn't expect that after Tet, the price would continue to increase, " said Mr. Tien.
Similarly, Ms. Tran Nguyet Minh (Ha Dong, Hanoi) also made a profit of 200,000 million VND after a few months of investing in an apartment. In December 2023, she and her husband bought an apartment in Linh Dam (Hoang Mai, Hanoi) with the purpose of "surfing" the market. At the time of purchase, the price of the 60m2 apartment was 2.6 billion VND. But now, her apartment has been asked to be bought back by a broker for 2.8 billion VND.
" The high interest rate sounds attractive, but if I sell this apartment now, it will be difficult to buy a similar apartment with that amount of money. In the context of apartment prices not stopping increasing, I decided not to sell but to switch to renting, both to have monthly cash flow and to let the asset value increase over time, " said Ms. Minh.
According to the latest report by PropertyGuru Vietnam on the real estate market in February 2024, in Hanoi, the prices of high-end apartments (over 50 million/m2) and mid-range apartments (30-50 million VND/m2) continued to increase, by about 4% and 3% respectively compared to January.
According to data from the Vietnam Real Estate Brokers Association, the average primary selling price of apartments nationwide is high because products launched on the market are priced above VND40 million/m2. The market is completely devoid of affordable, low-cost projects priced below VND30 million/m2.
Thus, the new price level in all price segments of apartments, from affordable, mid-range to high-end, has been and is being re-established.
According to real estate experts, the reason for the recent increase in apartment prices is that the supply of this segment continues to be scarce. In addition, low lending and savings interest rates have caused the apartment market to "heat up".
Expert Nguyen Quoc Anh said that Hanoi's urbanization rate is about 51%, meaning that Hanoi needs about 70,000 apartments each year to solve the housing problem for workers. But in reality, the supply on the market is too modest compared to demand. Mr. Quoc Anh predicted that this year, apartment prices will continue to increase.
Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, also analyzed that the price of buying, selling and renting apartments has continuously increased over the past time, which has also broken the prejudice that investing in apartments is a "consumer asset". Previously, most investors thought that apartments were a type of trading that did not generate profit, only losses, and choosing residential land was the optimal solution because of its easy liquidity and high profitability.
However, currently, investing in apartments and then renting them out has become a popular trend in big cities because it not only brings in a steady cash flow from monthly rentals - higher than savings - but also benefits from the potential for price increases.
The Chairman of the Vietnam Real Estate Brokers Association said that rental prices will continue to increase but at a slower pace. The outlook for the apartment market is becoming clearer as production and business activities are gradually recovering, leading to a large demand for housing in large cities.
Source
Comment (0)