Information at the seminar “Cash-Home Real Estate: Apartment segment leading the Hanoi market in 2024” on the afternoon of April 24, Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Real Estate Association, Chairman President of the Vietnam Real Estate Brokers Association, said that recently, there were 8,000 apartments opened for sale nationwide, with 3,000 apartments for sale in Hanoi alone.
The apartment index in Hanoi market increased sharply by about 48% compared to the first quarter of 2019, in Ho Chi Minh City increased by 21% compared to 2019. Mr. Dinh assessed that this shows that the real estate market is showing signs of flourishes.
Evaluating the apartment segment, Mr. Pham Thanh Hung, Vice Chairman of the Board of Directors of CenGroup, said that real estate developers feel very clearly about the sudden increase in apartment prices in Hanoi in recent times. .
“This is a necessary adjustment when the real estate market has recently encountered many difficulties in terms of supply, legality, market, finance… causing investors to encounter a ‘crisis of overabundance’. about money,” Mr. Hung said.
CenGroup leaders cited a report showing that in the first quarter of 2024, the total amount of money in large commercial banks was about 18 million billion VND that could not be disbursed. But in reality, people who are in need, need money, and are “stuck” cannot borrow more due to running out of collateral and running out of capital use options. Those who have collateral do not need to borrow money.
Therefore, currently commercial banks have to lower lending interest rates to about 5-6%. Mr. Hung commented, “This is something unprecedented in history over the past 20 years.”
“I’m willing to buy an apartment to rent out, then use that money to rent a villa to live in,” Mr. Hung said.
According to him, if you spend about 15-20 billion VND to buy an apartment, like a project on Le Van Luong Street that is selling for 100 million VND/m2; Can be rented for 30-40 million VND per month. This shows that apartment real estate is generating a very good cash flow.
Mr. Hung said that currently the market does not have many products that can replace apartments. The reason is that there are products that have cash flow and value but are stuck with liquidity; Or there are products that are fully legal but have no cash flow value.
“Up to this point, the increase in apartment prices has been relatively balanced compared to supply and demand and there will certainly be adjustments, but if we talk about expectations of price reduction, I think it will not happen,” Mr. Hung commented.
Meanwhile, Dr. Vu Dinh Anh, financial expert, former Deputy Director of the Price Market Research Institute (Ministry of Finance) assessed that apartments are currently a product for smart investors. When they calculate the benefits of the apartment and evaluate the prices of apartments in different projects and locations, they will make choices that suit their interests.
Statistics from the apartment building he lives in, Mr. Anh said, up to 80% of people buy to rent out and exploit cash flow, not to buy to live.
And Dr. Tran Xuan Luong, Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute, said that in the past, only about 15% of apartments were used mainly for residential purposes. is for business and rental.
But now, buyer behavior has changed; Many people need to buy an apartment to live, but also to do business, to generate cash flow. Therefore, apartments are becoming increasingly attractive to many people. That explains why recently, apartment prices have increased the highest in the past 20 years.
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