Prices of detached houses in many inner-city districts have decreased.
After getting married and having two young children, Mr. Hoang Van Binh (33 years old) wanted to sell his detached house on Hoang Cau Street (Dong Da District, Hanoi ) to buy an apartment. Mr. Binh's house is located in a deep alley, inaccessible to cars.
With a budget of under 7 billion VND, many people choose to buy mid-range or high-end apartments instead of houses in alleyways in downtown Hanoi.
Mr. Binh put his nearly 50 square meter house up for sale for 10 billion VND, but it was difficult to sell, so he reduced the price to 9 billion VND, but still no one has bought it.
"Although my house is in a central district of Hanoi, it's in a deep alley, making it difficult to sell. Houses in shallow alleys, accessible by car, sell more easily, with transaction prices sometimes reaching 12-15 billion VND for a 50 m² house, depending on the location," Mr. Binh shared.
According to a survey by Thanh Nien newspaper , house prices in narrow alleys in Hanoi's inner districts tend to decrease after the Covid-19 pandemic.
Detached houses in spacious areas like Tay Ho District retain their value better than those in Dong Da District, Thanh Xuan District, etc.
In Cau Giay District, detached houses with an area of approximately 50-60 m² , 5-6 stories high, and fully furnished are being offered for sale at around 220-230 million VND/ m² , about 15-20 million VND/ m² cheaper than 3-4 months ago. Houses of the same size in Thanh Xuan District are being offered for sale at 160-210 million VND/ m² , depending on location.
Meanwhile, in Dong Da District, the price of detached houses with an area of around 40 m² in alleys is approximately 100 million VND/ m² . Houses on alleys accessible by car and suitable for business or rental purposes still cost over 20 billion VND for an area of 60 m² (equivalent to over 400 million VND/ m² ). However, these prices are lower than during the "boom" period of townhouses before the Covid-19 pandemic.
Why did the price drop?
According to Vu Tien Thanh (38 years old, residing in Cau Giay District, Hanoi), a real estate broker specializing in the inner-city market, the trend of young people living in apartments has caused the townhouse market to stagnate.
Apartments are a popular choice for many young people because of their convenience.
"Previously, to preserve their wealth, people often bought houses and land in the city center, houses in alleys, or plots of land, and considered apartments as depreciating assets because their value usually decreased over time. However, with the current scarcity of apartments in inner-city districts and the growing preference for living on the same floor as in apartment buildings, the price of this type of property is increasing, becoming an investment channel," Mr. Thanh shared.
According to Mr. Thanh, the trend of selling individual houses to buy mid- to high-end apartments has been quietly developing for about 10 years and is becoming increasingly common.
However, real estate experts say that although house prices in alleyways have decreased by about 10-20% compared to before the Covid-19 pandemic, they are still quite high compared to the affordability of those with genuine housing needs.
According to experts, properties in the city center have stable values, but apartment buildings offer more convenient living than detached houses in narrow alleys.
Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS), said that buyers often have the mentality of waiting for the market to hit rock bottom before investing, but no one knows when that bottom will be.
According to Mr. Dinh, apartment living is a trend due to its convenience for family life; all activities take place on one floor, and the close-knit space helps to better connect family members. Not to mention, apartment complexes in the city are very spacious, with full amenities and services, and cars can be parked in the basement… The perception that apartments are a liability is also gradually changing.
"Detached houses in the city are a traditional product, also highly stable, but their total value is usually higher than apartments. However, to own a house with spacious living areas and a garage for a car, the cost is very high, usually around 10 billion VND, which not everyone is willing to pay. With a budget of around 7 billion VND or less, buying a detached house in the city means a car cannot access the property. This is very inconvenient in today's life. Therefore, with this amount of money, many people prefer to own an apartment rather than a detached house," Mr. Dinh said.
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