Houses in alleyways retain their value, and buyers still prefer to purchase them.

VTC News•16/08/2023

According to a survey by Batdongsan.com.vn, the price of detached houses located in alleyways in Hanoi has remained stable since the beginning of the year, with no decrease in price.

Accordingly, private houses in Dong Da district, located in the areas of Kham Thien, Thai Ha, Thinh Quang, Trung Tu, Kim Lien, De La Thanh, and Trung Tu, with an area of 25-40m2 in small alleys inaccessible to cars, still maintain a price of 3 - 4.8 billion VND/unit.

With the same characteristics, the selling prices of private houses in Thanh Xuan district, in areas such as Khuong Trung, Khuong Dinh, Trieu Khuc, Nhan Chinh, Kim Giang, etc., have not fluctuated significantly. The common price remains at 2.5-3.7 billion VND/house. In some exceptional cases, to sell quickly, homeowners have reduced prices by 100-150 million VND/house compared to the market average.

Houses located in alleyways still retain their value and attract a lot of interest.

In Cau Giay district, the prices of houses in alleys with an area of 25-40m2 in areas such as Yen Hoa, Trung Hoa, Dich Vong, Quan Hoa, Nghia Do, Nghia Tan, Mai Dich… remain at around 2.7-4.2 billion VND/house.

Private houses in Nam Tu Liem district, in areas such as Me Tri, My Dinh, Trung Van, and Phu Do, are priced between 2.8 and 4.4 billion VND per unit. In Tay Mo and Dai Mo areas, prices range from 2.6 to 3.3 billion VND per unit. A few private houses in this area sell at a higher price than the average because the owners have invested in renovations, repairs, and interior design before putting them up for sale.

House prices in Ha Dong district remained stable throughout the first seven months of the year. Houses in areas such as La Khe, Phu Lam, Duong Noi, Kien Hung, Yen Nghia, and Ha Cau, with an area of 30-40m2 and no car access, commonly ranged from 2 to 3 billion VND per unit. Some areas further from the city center, such as Dong Mai and Bien Giang, were priced at around 1.7 to 2.5 billion VND per unit.

With prices remaining stable, the segment of houses located in alleys continues to attract a steady stream of buyers. According to real estate agents, this is because, in the context of rising apartment prices (around 40 million VND/m2), many people are increasingly looking to buy houses in alleys. Furthermore, although comparable in price, detached houses offer greater long-term investment value.

For over a month now, Ms. Tran Hong Hanh and her husband (Hoang Mai, Hanoi) have been continuously looking at houses on weekends. They have saved and borrowed approximately 2 billion VND. Ms. Hanh plans to buy an apartment in the Linh Dam area. However, when the project launched, the developer quoted prices of up to 50 million VND/m2. A 70m2 apartment costs over 3 billion VND, which is beyond her financial means. After researching another project in the Phap Van area, where apartment prices were also over 35 million VND/m2, the couple decided against buying an apartment.

After careful consideration, Ms. Hanh decided to look for a small house in an alley. In some areas of Hoang Mai district, such as Linh Nam and Ngoc Hoi, many houses are advertised for sale at only around 2-3 billion VND, with an area of about 40m2, located in alleys. Although it's inconvenient to travel in the alley, there are no monthly service fees. Furthermore, house and land prices can increase over time, while apartment prices will decrease as they deteriorate.

“ Apartment prices are quite high right now. With around 2 billion VND, the only option is an old apartment. After considering our options, my husband and I chose a house in an alleyway; after all, the house and land are ours, ” Ms. Hanh said.

According to Ms. Pham Thi Thuy, a real estate agent specializing in private houses in western Hanoi, the general price level of the Hanoi private house market is stable after a period of rapid price increases during the boom. While many segments and types of the real estate market are experiencing losses, sharp price drops, and frozen transactions, private houses in alleys priced between 2-4 billion VND/unit, due to their focus on real needs, still see steady transactions, despite the stagnant prices.

Ms. Thuy said that from the end of July until now, the number of prospective buyers has increased slightly compared to previous months. This growth comes from a group of customers from other provinces who come to Hanoi to buy houses for their children studying at universities in Hanoi. Houses in alleyways priced between 2-4 billion VND/unit are of interest to this group because the price is more affordable than townhouses or houses in larger alleyways or main streets.

Regarding the attractiveness of landed properties, a Savills executive stated that in recent years, despite market fluctuations, the return on investment for landed properties has been high, ranging from 20-25% per year. In some projects and areas, secondary market prices have even increased by 40-50% annually.

This expert also assessed that land-based real estate remains an effective investment channel and a safe haven amidst the expected increase in inflation in the near future. This product line is suitable for investors with stable finances who can invest in the medium and long term.

Ngoc Vy

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