Townhouse transactions warm up

On real estate websites and social media platforms like Zalo, Facebook, and TikTok, advertisements for small townhouses and houses in alleys, priced from 2.8 billion to 5 billion VND, are attracting significant buyer interest.

As a real estate agent in the Go Vap, Phu Nhuan, and Binh Thanh districts of Ho Chi Minh City, Mr. Nguyen Lan took us to see a 32 m2 house located in an alley about 60 meters from Nguyen Thuong Hien street (Binh Thanh district). "The owner is asking 4.2 billion VND, but we can buy it for 4 billion VND. With a little more money to rebuild it into a ground floor and three upper floors, the price could increase to 5-6 billion VND," Mr. Lan explained.

Houses in alleys and townhouses with moderate prices are an attractive segment at the moment.

Another real estate agent, Mr. Nguyen Hoang, said he had just closed a deal on a 102.6 m2 house for only 4.5 billion VND, about 35% cheaper than the market price. "The owner wanted to finalize the sale before the Lunar New Year, so they agreed to lower the price to 4.2 billion VND; the price would be higher after the New Year. The buyer saw the bargain, which was only equivalent to the price of a 2-3 bedroom apartment, so they quickly made the purchase," Mr. Hoang said.

Ms. Do Linh Dan, a long-time real estate agent in Thu Duc City (Ho Chi Minh City), also said that in the past 2-3 months, transactions in the detached townhouse segment in the central area have been quite active. Not only have transactions increased, but house prices have also risen slightly by about 5% compared to the beginning of 2022. Demand for buying to live in accounts for 60%-70%; the rest are for investment, rental, etc. One of the driving forces behind many people deciding to buy a house at this time is that bank interest rates have become more favorable.

Mr. Ta Trung Kien, Deputy General Director of Wowhome Real Estate Company, assessed that the demand for ready-built townhouses with land ownership certificates or individual land plots in the central districts of Ho Chi Minh City is currently quite high. A portion of this supply consists of old, dilapidated houses that have been renovated and put on the market; the rest are properties whose owners need to sell urgently to handle personal matters. The 3-5 billion VND price range meets the needs of buyers the most.

According to Mr. Tran Khanh Quang, General Director of Viet An Hoa Real Estate Company, individual townhouses with affordable prices always have high liquidity, especially at the end of the year, because they meet the real needs of urban residents. This is also a segment that competes strongly with mid-priced apartments.

Typically, houses in areas bordering the central districts of Ho Chi Minh City, such as districts 5, 7, 4, Binh Thanh, and Go Vap, are very attractive to buyers.

"Transactions involving townhouses and houses in alleys will continue to attract buyers from now until the end of Q2/2024, with increasing liquidity. This trend will initiate a recovery in liquidity for other segments such as apartments, high-end townhouses, and land plots..." - Mr. Quang predicted.

Dr. Pham Anh Khoi, Director of the Institute for Economic , Financial and Real Estate Research at Dat Xanh Services, believes that the period when the real estate market hits its bottom and gradually recovers will be an opportunity for those who prefer townhouses, houses in alleys, or want to accumulate assets.

Source: https://nld.com.vn/giao-dich-nha-pho-am-len-196240122200804569.htm