HanoiAccording to experts, the average apartment price is nearly 60 million VND per square meter and it will be difficult to cool down in the short term due to high demand and “clogging” of supply.
Mr. Nguyen Van Dinh, Chairman of the Real Estate Brokers Association (VARS), said that the price of new apartments in Hanoi has increased for 21 consecutive quarters, reaching about 59 million VND per square meter.
Recent data from market research units shows that new apartment prices in Hanoi have grown rapidly over the past time. According to CBRE, new apartment prices in Hanoi increased 19% in the first quarter of the year – to an average of 56 million VND per m2 (excluding VAT and maintenance fees).
With this threshold, apartments in Hanoi are equivalent to Ho Chi Minh City when the price gap gradually narrows, from 3-5 years to 1-2 years. In the first quarter, data from Batdongsan channel showed that the price of primary apartments in the Capital was 3 million VND per m2 lower than Ho Chi Minh City, equivalent to about 56 million VND per m2.
Prices have skyrocketed, but limited supply makes it difficult for analysts to predict that new apartment buildings in Hanoi will cool down in the short term. The president of a business developing an apartment project in Van Quan, Ha Dong said that the land fund in the center of Hanoi is almost non-existent to deploy new projects.
Not to mention, it is difficult for apartment supply to increase quickly when a housing project usually needs at least 5 years from implementing investment procedures to bringing the product to the market.
Model of a new project with nearly 4,000 apartments in the west of Hanoi, average price over 60 million VND per m2. Image: Mr. Tu
Mr. Pham Duc Toan, CEO of EZProperty also said that it is very difficult for new apartment prices to cool down when the Hanoi market has not resolved the supply “blockage” situation. The implementation of social housing projects – hoping to reduce apartment space – has so far been very slow. Since last year, the city has had only one social housing project with nearly 280 units opened for sale.
In the current context of demand being many times greater than supply, according to CEO EZProperty, the few big players with new projects at this time cannot easily reduce prices to optimize profits.
In fact, apartment prices in new projects have continuously fluctuated in the past few months according to market demand. At the end of last year, the investor of a project with nearly 4,000 apartments located close to Thang Long Avenue offered a rumored price (expected) from 66 million per m2 (excluding VAT and maintenance fees). However, after more than three months, some brokers now say the average unit price of a 3-bedroom apartment in the above project can be up to more than 80 million VND per square meter.
Or like an apartment building with more than 500 apartments in a large project in Tay Mo that was just launched, the highest price was 74 million VND per square meter – about 8 million more expensive than the building next door with the same investor that was opened for sale. one month ago.
At a recent event, Mr. Pham Thanh Hung, Vice President of Cen Group, also commented that it is difficult to expect apartment prices in Hanoi to decrease again.
In addition to supply difficulties, Vice President of Cen Group said that the reason also comes from the recent market collapse, investors facing a crisis of excess money, as well as falling home loan interest rates. He commented that for investors, there are currently not many products around Hanoi that have all four elements including legality, use value, liquidity and cash flow to replace apartments. Therefore, according to Mr. Hung, the current increase in apartment prices still attracts buyers.
Economic expert Vu Dinh Anh commented that the real estate market is benefiting from low deposit interest rates and people withdrawing bank deposits to buy real estate. This is also part of the reason why apartment prices increased, unfinished projects were sold out.
Mr. Tu
