Hanoi's old townhouses are being sold en masse, with prices per square meter equal to those of an old apartment.

The price per square meter of a townhouse in the Old Quarter is comparable to that of an old apartment.

Hanoi's Old Quarter is known as the "diamond street," not only because of its attractiveness to small businesses but also because of its exorbitant prices. Due to its high rental potential, homeowners previously had little desire to sell. However, recently, numerous townhouses in this Old Quarter are being offered for sale at prices reaching billions of dong per square meter.

According to a survey by Dan Tri newspaper reporters, townhouses in Ta Hien and Luong Ngoc Quyen streets (Hoan Kiem district) are currently being sold at prices ranging from 800 million to 1.2 billion VND/m2. For example, a house on Ta Hien street with an area of ​​over 180m2 is being offered for sale at 230 billion VND, equivalent to nearly 1.3 billion VND/m2.

For example, on Luong Ngoc Quyen street, a corner house with an area of ​​51m2 and 3 floors is being offered for sale at nearly 54 billion VND, equivalent to almost 1.1 billion VND/m2.

On Trang Thi Street, townhouses are being offered for sale at prices ranging from 900 million to 1.4 billion VND/m2, with some houses boasting views of Hoan Kiem Lake reaching up to 1.8 billion VND/m2. For example, a 90m2 townhouse on Trang Thi Street, according to the seller, is priced at 170 billion VND, equivalent to 1.88 billion VND/m2, because the house is old.

Notably, on Au Trieu, Hang Bong, and Hang Dao streets, there are townhouses with selling prices ranging from 2 to 2.4 billion VND per square meter. For example, a 29m2 house on Hang Dao street is being advertised for sale at 69.8 billion VND, equivalent to over 2.4 billion VND per square meter. According to the seller, the house has a panoramic view of Hoan Kiem Lake. The house can generate over 120 million VND per month in rental income for the owner.

Many townhouses in the old town are being offered for sale at prices comparable to a two-bedroom old apartment per square meter (screenshot).

Or another house on Ly Thai To street, with an area of ​​30m2 and 4 floors, is being offered for sale at 75 billion VND, equivalent to 2.5 billion VND/m2.

The price of 2-2.4 billion VND is not the highest asking price ever recorded in the Old Quarter area. Previously, at the end of 2021, a townhouse with an area of ​​270m2 on Dinh Tien Hoang Street was advertised for sale at 1,000 billion VND, equivalent to 3.7 billion VND/m2.

However, the current asking price of 2.4 billion VND is comparable to that of some two-bedroom apartments in Nam Tu Liem and Bac Tu Liem districts.

High price but difficult to sell due to high value.

According to Mr. Vu Thanh Tung, the owner of a real estate brokerage firm in Hanoi, most homeowners in the Old Quarter do not live there but rent it out for hotel or shop businesses. Land in the Old Quarter is extremely limited and deeply rooted in culture and history, so prices remain consistently high.

However, Mr. Tung revealed that townhouses in the Old Quarter are highly valuable, resulting in low liquidity. This is because the amount of money required to own a house there is very large. Furthermore, renting them out for business purposes is more difficult than before, so investors with substantial cash flow have to carefully consider their options before making a purchase.

Townhouses in the Old Quarter are highly valuable, so they are not always easy to sell (Illustrative image: Duong Tam)

According to him, the habits of business owners have also changed compared to the past; they are now more dependent on physical locations and can sell online. Rental prices for townhouses have decreased significantly recently. In fact, many townhouses are unrentable, leading to more people selling them. However, following the general market trend, townhouse prices have continued to rise, even increasing by 50% in some areas over the past three years.

Pointing out the reasons why townhouse prices have continued to rise recently, Mr. Chung said that the current supply of townhouses in Hanoi is very scarce. Many townhouse owners have "used" this reason to increase their asking prices. However, the asking price must be accepted by the market to establish a general price level. In the long term, he believes that townhouse prices will continue to rise, but the profit margin will not be as high as before.

Meanwhile, Mr. Nguyen The Diep - Permanent Vice Chairman of the Hanoi Real Estate Club - believes that many homeowners are offering high prices due to expectations. However, investors need to do thorough research before investing, because the actual transaction price may be much lower than the price the homeowner is asking.

"The price increase by homeowners is also due to the ever-increasing demand for townhouses, especially on prime streets, but the supply is not increasing," Mr. Diep added.

Source: https://dantri.com.vn/bat-dong-san/o-at-rao-ban-nha-pho-co-ha-noi-gia-moi-m2-ngang-ngua-mot-can-chung-cu-cu-20240831004347768.htm