House and land prices in Hanoi have returned to reasonable levels.

According to a report by CBRE Company Limited (Vietnam), the average secondary price of land-attached housing in Hanoi in the second quarter of 2023 reached VND 154 million/m2 (including construction costs and excluding VAT), down 1.6% compared to the previous quarter and down 13% compared to the peak in the third quarter of 2022.

Meanwhile, land prices in many suburban districts of Hanoi have also been adjusted to a reasonable level. A survey by batdongsan.com.vn shows that land prices in Dong Anh district are currently stable. For example, land prices in Nguyen Khe commune, after decreasing by about 10-15% compared to the time after Tet, have remained at an average price of 38-43 million VND/m2 since the end of June. Land prices in Vong La commune have also remained at 34-40 million VND/m2, land prices in Co Loa are 18-21 million VND/m2, and land prices in Hai Boi are stable at 50-55 million VND/m2.

House and land prices in Hanoi have returned to a reasonable level after a period of "hot" increases. (Illustration photo)

In Hoai Duc district, after a decline in land prices since the end of last year, from the beginning of July 2023 until now, there has been no more downward trend but a sideways trend. In the locations where two cars can pass each other, it is possible to do business in the areas of Di Trach, Kim Chung, An Khanh, the average price is currently maintained at 66-74 million VND/m2. Land in villages in Dong La, Kim Chung, Duc Thuong, Song Phuong... has been maintained at 27-40 million VND/m2 for nearly two months now.

Similarly, the price of land in Dan Phuong district has been stable for over a month. The area on 422 Tan Lap street is at 52 - 57 million VND/m2, land on Tan Hoi street is maintained at 55 - 57 million VND/m2. Land in villages in Hanh Dan, Lien Trung, Binh Minh... has not seen any recent loss-cutting, still maintaining a price of over 20 million VND/m2.

Meanwhile, land prices in some inner-city districts of Hanoi are currently quite high, averaging over 100 million VND/m2.

Specifically, land prices in Cau Giay district are around 170 million VND/m2. This high price is due to the fact that this is a bustling central district, with convenient connectivity and complete infrastructure and services.

In Thanh Xuan district, the average land price is about 127 million VND/m2, because Thanh Xuan is a rare central district with rapid development in planning, infrastructure and real estate for decades due to Hanoi's development orientation to the West.

In Hoang Mai district, real estate is still in a period of strong development in terms of supply and selling price with great demand. If 5 years ago, when it was still a hot spot for traffic and overloaded infrastructure, real estate in Hoang Mai district was less attractive, then in the past 5 years, Hoang Mai has shortened the gap with Western districts such as Ha Dong, Nam Tu Liem, Thanh Xuan. Land prices increased from an average of 47 million VND/m2 (2018) to 82 million VND/m2, an average increase of 14.89%/year.

In Ha Dong district, Yen Nghia area recorded the phenomenon of landowners selling at reduced prices in some locations with prices from 150 million VND/m2 or more. However, at locations with prices of 50 - 60 million VND/m2 in Phu Lam, Yen Nghia, Duong Noi, Thanh Ha... there was no loss-cutting but actually recorded a flat situation.

In Long Bien district, land prices are around 82 million VND/m2. This is a district with convenient connections to the inner city, helping the real estate market of Long Bien district increasingly attract buyers and investors.

Nam Tu Liem is an area that has just gone through a "hot" development period since the establishment of the district (2013), so there have been many real estate disturbances. Currently, the price of land and residential land in this area is stable at about 79 million VND/m2.

Good time to buy real estate

Experts say that housing prices in Hanoi cannot increase much but will also find it difficult to decrease. In particular, housing prices in the primary market are basically stable, possibly fluctuating slightly at the end of the year. In the secondary market, housing prices will have changes due to financial policies.

Mr. Nguyen Anh Que, Executive Committee Member of Vietnam Real Estate Association, Chairman of G6 Group, analyzed: Currently, interest rates for deposits and loans have decreased, investor sentiment is better, and the market has begun to have transactions. The credit loan package of 120,000 billion VND is about to be "poured" into the real estate market. The legal corridor for real estate is also moving towards completion so that it can be applied in the new year. These are positive factors for the real estate market, contributing to keeping prices at a reasonable level.

In addition, in the period of 2023 - 2024, public investment will be promoted, in which investment in airport infrastructure, highways, and ports will be factors supporting real estate price increases. FDI capital invested in Vietnam is also forecast to grow strongly.

Thus, when the economy is stable and real estate has good foreign capital attraction, investors will pour into many segments such as industrial real estate, urban housing, etc. Real estate prices in general and housing prices in particular have more growth prospects.

Meanwhile, according to Mr. Marc Townsend - senior consultant of Arcadia Consulting Vietnam: " Secondary housing prices will decrease before increasing again in mid-2024 and this is the best time to buy real estate in the past 6-7 years. Currently, real estate prices in the secondary market have decreased significantly by 20%, 30%, even 40% ".

In particular, he noted that the real estate market moves in cycles and the current market is witnessing an upward cycle as liquidity is starting to emerge. Some developers have adopted new sales policies that are more affordable to the public, such as freezing interest rates for eight years to limit interest rate risks for buyers. With greater clarity on Vietnam’s policies and an improved economic outlook, investor sentiment is expected to recover.

Ngoc Vy

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