According to a report by CBRE (Vietnam) Co., Ltd., the average secondary market price of landed houses in Hanoi in Q2 2023 reached VND 154 million/m2 (including construction costs and excluding VAT), a decrease of 1.6% compared to the previous quarter and a decrease of 13% compared to the peak reached in Q3 2022.
Meanwhile, land prices in many suburban districts of Hanoi have also been adjusted to reasonable levels. 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 a decrease of about 10-15% compared to the period after the Lunar New Year, have maintained an average price of 38-43 million VND/m2 from the end of June until now. Land prices in Vong La commune also remain at 34-40 million VND/m2, land in Co Loa is priced at 18-21 million VND/m2, and land in Hai Boi remains stable at 50-55 million VND/m2.
Housing and land prices in Hanoi have returned to reasonable levels after a period of rapid increase. (Illustrative image)
In Hoai Duc district, after a price drop at the end of last year, land prices have stabilized since the beginning of July 2023. In areas with wide roads suitable for business, such as Di Trach, Kim Chung, and An Khanh, the average price remains at 66-74 million VND/m2. Land within villages in Dong La, Kim Chung, Duc Thuong, Song Phuong, etc., has maintained a price of 27-40 million VND/m2 for nearly two months.
Similarly, land prices in Dan Phuong district have remained stable for over a month. Land along Tan Lap Road (Road 422) is priced at 52-57 million VND/m2, while land along Tan Hoi Road maintains a price of 55-57 million VND/m2. Land within villages such as Hanh Dan, Lien Trung, and Binh Minh... has not seen any recent price cuts and continues to maintain a price of over 20 million VND/m2.
Meanwhile, land prices in some inner 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 its location as a bustling central district with convenient connectivity and complete infrastructure and amenities.
In Thanh Xuan district, the average land price reaches approximately 127 million VND/m2, because Thanh Xuan is one of the few central districts that has experienced rapid development in planning, infrastructure, and real estate for decades due to Hanoi's westward development orientation.
In Hoang Mai district, the real estate market is still experiencing strong growth in both supply and price, driven by high demand. Five years ago, when it was a hotspot for traffic congestion and overloaded infrastructure, real estate in Hoang Mai was less attractive. However, in the last five years, Hoang Mai has narrowed the gap with western districts like Ha Dong, Nam Tu Liem, and Thanh Xuan. Land prices have increased from an average of 47 million VND/m2 (2018) to 82 million VND/m2, an average increase of 14.89% per year.
In Ha Dong district, the Yen Nghia area has seen landowners lowering their asking prices in some locations priced at 150 million VND/m2 or higher. However, in locations priced at 50-60 million VND/m2 in Phu Lam, Yen Nghia, Duong Noi, Thanh Ha, etc., there has been no significant price reduction; prices have remained stable.
In Long Bien district, land prices are around 82 million VND/m2. This district's convenient connectivity to the city center makes its real estate market increasingly attractive to both homebuyers and investors.
Nam Tu Liem is an area that has just gone through a period of rapid development since the district was established (2013), so there has been a lot of real estate activity. Currently, the price of land plots and residential land in this area is stable at around 79 million VND/m2.
The best time to buy real estate.
Experts predict that housing prices in Hanoi are unlikely to rise significantly, but they are also unlikely to fall. Specifically, primary market housing prices are expected to remain stable, with only slight fluctuations towards the end of the year. In the secondary market, prices are expected to change due to changes in financial policies.
Mr. Nguyen Anh Que, a member of the Executive Board of the Vietnam Real Estate Association and Chairman of the Board of Directors of G6 Group, analyzed: Currently, both deposit and lending interest rates have decreased, investor sentiment is better, and the market is starting to see transactions. A 120,000 billion VND credit package is about to be injected into the real estate market. The legal framework for real estate is also moving towards completion and can be applied in the new year. These are positive factors for the real estate market, contributing to keeping prices at a reasonable level.
Furthermore, during the 2023-2024 period, public investment was boosted, with investments in airport infrastructure, expressways, and ports supporting real estate price increases. Foreign direct investment (FDI) into Vietnam is also projected to grow significantly.
Therefore, when the economy is stable and real estate attracts foreign capital, investors will flock to various segments such as industrial real estate, urban residential areas, etc., giving real estate prices in general, and housing prices in particular, further growth prospects.
Meanwhile, according to Marc Townsend, senior advisor at Arcadia Consulting Vietnam: " Secondary market property prices will fall before rising again in mid-2024, and this is the best time to buy real estate in the last 6-7 years. Currently, property prices in the secondary market have fallen significantly by 20%, 30%, or even 40% ."
In particular, he noted that the real estate market operates in cycles, and the current market is witnessing an upward cycle as liquidity begins to improve. Some developers have adopted new sales policies that are more affordable for 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 improved economic prospects, investor sentiment is expected to recover.
Ngoc Vy
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