Land prices recover
According to VTV , townhouses, villas in the project as well as residential land, houses in alleys and lanes are gradually recovering and increasing in price again after a period of deep decline.
According to the survey, about 72% of residential land transactions are concentrated in 6 central districts, including: Ha Dong, Nam Tu Liem, Long Bien, Gia Lam, Hoang Mai, Bac Tu Liem. These are districts with diverse residential land supply and more attractive prices than inner-city districts.
Notably, land in some suburban districts with heavy speculative factors, such as Thach That, Dan Phuong, Dong Anh, Hoai Duc, Ha Dong, Me Linh, Gia Lam, etc., no longer has to be sold at a loss like at the beginning of last year. Land prices started to stagnate from the end of the third quarter of 2023 and have now increased again, but market liquidity is still not vibrant.
Townhouses, villas in the project as well as residential land, houses in alleys and lanes are gradually recovering and increasing in price again after a period of sharp decline. Illustrative photo from the internet
For example, land in the Ha Phong project, Cienco5 (Me Linh district), at the end of 2023, was only priced at 30 - 32 million VND/m2, now in beautiful locations, customers pay 40 - 42 million VND/m2, the landowner does not want to sell, waiting for the price to increase further. Land in small alleys accessible by cars in the communes of Dang Xa, Co Bi, Kieu Ky, Duong Xa (Gia Lam district) remains at 45 - 50 million VND/m2; some locations on major roads still have prices of 100 - 120 million VND/m2.
In Hoai Duc district, in locations that can be used for business such as Van Canh, An Thuong, Di Trach, La Phu, Kim Chung..., the average price is 60 - 75 million VND/m2. Residential land in Binh Yen commune (Thach That district) is also from 17 - 20 million VND/m2 in beautiful road frontage locations in the village, an increase of 3 - 4 million VND compared to 2 years ago...
Also at this time, auctioned land in some districts recorded winning prices at a higher level than the starting price; in some beautiful locations, the price even doubled. Specifically, in Dong Anh district, on March 31, the district successfully auctioned 40 plots of land in LK3 - LK4 area of Thuy Lam commune. With an area of 87.5 - 140 m2, the starting price was from 23.5 - 24.5 million VND/m2, the winning price was from 42 - 59.5 million VND/m2. The total amount collected was more than 170 billion VND, a difference of 85 billion VND compared to the starting price.
Since the beginning of the year, Me Linh district has also auctioned nearly 100 plots of land with winning prices ranging from 20.6 to 56.1 million VND/m2 (starting price from 19 to 27 million VND/m2). The total winning auction amount is over 130 billion VND, 60 billion VND higher than the starting price...
Experts say that Hanoi real estate prices are being pushed up in all segments and many areas to create a "wave". Currently, many houses in alleys in some districts are being sold for hundreds of millions of dong, even higher than street-front houses, which is unreasonable.
The inner-city real estate segment is always a real demand, so price increases are inevitable; however, the inner-city districts have formed a price level and it is difficult to have a high increase margin, because according to statistics in the past 3 years, the increase is about 40%. High and sudden increases are only in districts such as Long Bien, Ha Dong, Nam Tu Liem or areas preparing to become districts such as Dong Anh, Hoai Duc, Gia Lam, Thanh Tri.
Why are real estate prices increasing so much?
According to Lao Dong , real estate experts say that the residential land segment in Hanoi's inner city has not been affected much by market trends of increase or decrease.
Many people believe that apartment prices have increased too much compared to the income of the majority of the population, so customers have turned to residential land. However, due to the scarcity of supply, housing prices have been pushed higher than the reality.
Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club - said that the sharp increase in real estate prices in recent times is due to many projects being stuck in policy mechanisms, legal procedures on bidding and auctions lasting for many months, causing the projects to not be implemented on time. Along with that, the preparation for implementing the land price list according to market prices is also the reason for the price increase.
“While supply cannot meet demand, there is a huge flow of foreign currency into real estate investment, so it is necessary to promote openness of policies and mechanisms for businesses to develop,” said Mr. Diep.
Dao Vu (T/h)
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