Prices are rising steadily and consistently.

According to a report by OneHousing, the residential real estate market is quite vibrant, with 3,300 transactions recorded during the Ghost Month (the 7th lunar month), only slightly lower than in previous months. This contradicts the general trend of the market "lowering" during the Ghost Month each year.

Mr. Tran Duc Khang, Regional Sales Director of OneHousing, commented: "One of the reasons is that people's consumption habits have changed. Previously, 'during the Ghost Month, people avoided buying, selling, and making transactions, and didn't do anything big,' but now they see the Ghost Month as the month of Vu Lan (a Buddhist festival honoring parents), and many people want to own a house, a major asset."

Old churches in Hanoi are increasing in value steadily and stably (Figure 1). — House prices in Hanoi continue to rise steadily and consistently. (Photo: VNBiz)

Secondly, this year's Ghost Month coincides with the effective date of the Real Estate Law. The new regulations on land transfer, market-based land price frameworks, and restrictions on land subdivision and title separation have somewhat influenced customer sentiment regarding the possibility of future land price increases, leading customers to make decisions more quickly.

"In addition, land auctions in suburban areas also take place in the seventh lunar month, leading to much speculation about price increases, which has also significantly impacted buyer sentiment," Mr. Khang said.

Regarding the residential housing segment, Mr. Khang stated that prices in this segment continue to increase steadily and stably.

In fact, in recent months, finding a house in the inner city of Hanoi for around 3-4 billion VND has been very difficult. For a house in a moderately sized alleyway, wide enough for motorbikes to pass each other, with sufficient functionality and an area of 30m2, 2-3 bedrooms, if you consider the land price alone at over 100 million VND/m2, plus construction costs, the transaction price would exceed 4 billion VND.

Therefore, houses priced around 3-4 billion VND, if any exist, either have feng shui flaws (narrow rear, road leading directly into the property); the house is on old land, and the owner only intends to sell the land; or the alley leading to the house is very deep and narrow…

In the suburbs, houses in alleyways are trading at around 70-80 million VND/m2, and some corner plots or prime plots can even fetch over 100 million VND/m2.

In terms of geographical areas, the East and West are the focal points of Hanoi's real estate market. Not only is the apartment segment booming, but land transactions in the East and West accounted for 66% of the Hanoi market in the first six months of 2024.

In August, the western area (Cau Giay, Nam Tu Liem, Bac Tu Liem, Ha Dong) led the market with approximately 1,200 transactions (accounting for 36% of the market share), followed by the area (Gia Lam, Long Bien) with about 1,100 transactions (33% of the market share).

The reason why real estate transactions in the western districts are so vibrant is because they attract a workforce and job opportunities almost equivalent to those in the inner city districts, leading many people to choose to buy houses here for convenience in commuting to work.

Meanwhile, the eastern area is becoming an increasingly popular choice due to its developed infrastructure and better living conditions.

According to forecasts from OneHousing's Market Research and Customer Insights Center, the land market is expected to record approximately 23,000 transactions in the last six months of 2024, still mainly concentrated in the East and West areas.

Recently, there has been a lot of conflicting information on the market regarding rising real estate prices. However, we must accept the reality that supply is lower than demand, and therefore transaction prices partly reflect the market situation. Wealthy customers are still seeking opportunities to invest in real estate, fearing that the market will reach a new peak.

"According to the general market situation, house prices have also increased somewhat, but there are no signs of a sudden surge in a few months; instead, the increase is more steady and stable. With houses, stopping purchases doesn't affect the homeowners' willingness to lower prices; homeowners only lower prices when they desperately need money to invest in something else," Mr. Khang emphasized.

Comment (0)