Disturbance in the apartment market in Hanoi, it is necessary to develop and issue a price index soon

Going against the rule, the primary house price is much higher than the secondary price

Currently, due to a serious supply shortage, the secondary apartment market in Hanoi is very active. In new projects put into use, with beautiful and convenient locations, house prices on the secondary market are increasing rapidly.

According to a survey by PV, at an apartment project located on Dinh Cong Street (Hoang Mai District), although it was only opened for sale at the beginning of this year, it was sold out in less than a month. The selling price offered by the investor is 38 – 42 million VND/m2, depending on the location, this is called the primary selling price.

Because it has been sold out, in case customers want to buy apartments in this project, they must buy and transfer from the old owner (buy on the secondary market). On the secondary market, the selling price of apartments in this project has increased to 40-43 million VND/m2.

Similarly, at an apartment project located right on Quang Trung street (Ha Dong district), in early 2021, customers buying apartments will have to pay VND 29 – 31 million/m2. However, currently, the secondary price in this project has increased to 34-35 million VND/m2.

Mr. Duy Anh, a real estate broker in Hanoi said: Because the apartment market is scarce, the secondary price is higher than the primary price. This is the rule of the real estate market. Even the projects that have been put into use for a long time are on the verge of increasing prices.

However, the “strange” phenomenon that currently exists in Hanoi is located in the Nam Tu Liem district. There is a project here that goes against the rules as usual in the market, when the primary selling price is much higher than the secondary selling price.

Specifically, a 45m2 apartment in this project, expected to receive a house in May 2023, is currently priced at VND 1.9 billion, equivalent to VND 42.3 million/m2. Meanwhile, on the secondary market, customers can easily find and buy from the old owner, with the price of only 1.5 – 1.6 billion VND, equivalent to 33-35 million VND/m2.

Especially, the apartments for sale on the secondary market for a few hundred million dong cheaper are new, unused, and even have not been handed over to customers.

Sharing with PV, a real estate broker at this project said: Because the investor has a policy of changing the selling price every 3 months, the primary price is much higher than the secondary price.

“Because this is a big project, in addition to building residential areas, the investor also develops other utilities. Therefore, there is a policy to change the selling price every 3 months. This change in selling price It also benefits early buyers, even when reselling, lower than the primary price, it is still profitable,” this broker said.

It is necessary to develop and issue a price index soon

Although beneficial for investors, however, the continuous price increase has caused the average land price to increase rapidly, creating great pressure for those who want to buy real houses.

Commenting on this issue, Mr. Nguyen Van Dinh – Vice Chairman of the Vietnam Real Estate Brokers Association said: “This phenomenon is most likely a trick of the real estate sales industry. Then in Hanoi, the source of goods is scarce, investors take advantage of the situation of high demand and low supply to raise prices and sell products through distribution units.

“In general, this situation does not appear to bring any benefit to buyers, but only creates chaos for the market and information becomes ‘mess’. That means there are many selling prices in the market. such as the ceiling price, the price of goods, the price difference … thereby creating an unprofessional and transparent market “- Mr. Dinh said.

Sharing the same opinion with real estate expert Nguyen Van Dinh, Assoc. Prof. Dr. Dinh Trong Thinh – an economic expert affirmed that this is just a “price blow” trick of the investor to maximize profits.

“The primary selling price is many times higher than the secondary price, how do buyers and sellers “eat the difference”. Obviously, this is a very strange and unreasonable case compared to the rules of the market. real estate,” said Mr. Thinh.

Also according to Assoc. Prof. Dr. Dinh Trong Thinh, in this case, both real home buyers and investors suffer. Only investors can benefit from rising housing prices.

In order for this phenomenon not to continue, real estate experts said that it is necessary to be transparent in the selling prices of apartments on the market. Especially the state and management agencies should soon develop and issue a price index so that investors and customers have a basis to compare and contrast in the case of buying and selling goods on the market. avoid the biggest risk to the buyer.