The real estate market in the country in general and Hanoi in particular is facing many difficulties. Villa prices have dropped by up to 50% in some places. Apartment prices have also dropped by up to 38%. However, there is a segment where despite being paid sky-high prices, there is still no "goods". That is the segment of houses facing the city center.
Customer pays 1 billion/m2, owner still says it's cheap
Tong Dan is one of the bustling central streets in Trang Tien ward, Hoan Kiem district, Hanoi city. This place and the surrounding area are home to many large banks such as Vietcombank, BIDV , LienvietPostBank, SeaBank…
Many houses on the street front in the center of Hanoi are being advertised for sale at prices of over 1 billion VND/m2. Screenshot.
According to some residents of Tong Dan Street, recently, a bank wanted to buy land from people. This bank offered up to 1 billion VND per square meter, but the homeowners still said it was too cheap and did not sell.
Some people even shared that they were paid 80 billion VND for an old house of more than 20 square meters with 2 frontages. At this price, each square meter is up to… 4 billion VND.
In reality, on real estate classifieds websites, land prices in this area are much lower than 4 billion VND but still very high, almost reaching the 1 billion VND mark.
For example, a corner house on Tong Dan street with a floor area of 45 square meters (4 floors) is offered for sale at 40.5 billion VND (about 900 million VND/square meter).
Some other houses on Tong Dan Street are also offered for sale at very high prices but are introduced as “cheap”. A 1,000m2 (4-storey) townhouse is offered for sale at VND850 billion (equivalent to VND850 million/m2); a 750m2 (4-storey) house is offered for sale at VND525 billion (about VND700 million/m2),…
According to statistics from the website Batdongsan.com.vn, street-front houses in Trang Tien Ward, Hoan Kiem District cost from 740 million VND to 1.7 billion VND/m2. The most common price range is under 900 million VND/m2.
Even the price of 2.5 billion VND/m2 is available.
Although it is a bustling street in the center of Hanoi, in terms of location and land price, Tong Dan is still far behind other streets such as Hang Bai, Trang Tien, and Ly Thai To.
A house on Ly Thai To street, only 30m2 wide (4 floors) is for sale for up to 75 billion VND (equivalent to 2.5 billion VND/m2). This house has 6 bedrooms, 3 bathrooms.
A house on Trang Thi street, 80m2 wide (3 floors), 7.8m frontage is for sale at 150 billion VND (nearly 1.9 billion VND/m2). The house is located on a corner lot, overlooking Hoan Kiem Lake, convenient for business.
Hang Bai Street is also full of townhouses that are being offered for over 1 billion VND/m2. There is a homeowner who is selling a 6-storey house on Hang Bai Street, with a frontage of 8.2m and a total floor area of 50m2. The price of this real estate is up to 78 billion VND (about 1.56 billion VND/m2).
Another house on Hang Bai street, only 15 square meters wide, with 3 floors and a 4.5 meter wide frontage, is being offered for sale at 20 billion VND (about 1.33 billion VND/square meter),…
Based on the average income of workers in Ho Chi Minh City and Hanoi in 2023, batdongsan.com.vn estimates that it will take people in these two cities hundreds of years to buy a street-front house.
Specifically, according to data from Batdongsan.com.vn, the average selling price of all types of housing in Hanoi is currently 22.8 billion VND/unit for a street-front house. It is estimated that the average income of Hanoi workers in 2023 is 135 million VND/year, so people will have to spend 169 years to own a street-front house.
This is the average. In the central streets and old quarters of Hanoi, as mentioned above, a house of only 50 square meters costs up to 78 billion VND. Thus, people have to spend… 580 years to have the hope of owning a house spacious enough to live in.
Although housing prices in Hanoi's city center and Old Quarter are very high, they have not fluctuated much over the past decade.
More than 10 years ago, public opinion was stirred by the news that a project at the Hang Bai - Ly Thuong Kiet intersection was having difficulty in clearing the site because the investor demanded compensation of up to nearly... 2 billion VND/m2.
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