2 billion dong apartment in Hanoi looking to buy

Difficult to find 2 billion apartment

Preparing to get married, Nguyen Manh Thang and his wife (Thanh Xuan, Hanoi) are looking for an apartment to live separately. With the support of the parents of both sides, plus a bit of the couple’s finances, Mr. Thang has about 2 billion VND. He is looking for a 2-bedroom apartment of about 70m2 in an apartment project near Thanh Xuan district for convenience.

Mr. Thang contacted many real estate brokers, but with this financial amount, the brokers all refused because there was no new apartment project to meet. Some new projects have a starting price of over 40 million VND/m2, the lowest price is also from 3 billion VND. If he had to borrow about 1 billion VND, Mr. Thang and his wife could not afford to pay the debt.

According to a broker, the number of apartment projects in the inner city area is almost nonexistent, if there are also high-end apartments, low prices are also 40-50 million VND/m2. With 2 billion VND, Mr. Thang cannot buy a new apartment project in this area. The broker introduced Mr. Thang and his wife to a few suburban apartments in Nam Tu Liem, Hoai Duc.

After that, Mr. Thang tried to learn some projects apartment outside of Hanoi. Anh Thang was even more startled when the price of projects outside the central area also reached 40 million VND/m2, even some 80 million VND/m2 projects.

“When I heard about the increase in real estate prices, I thought that for each land, the apartment price also increased. Now holding 2 billion, I don’t know which project to buy,” Thang shared. He is discussing with his wife, using 2 billion to buy a piece of land in the countryside to invest, and also to live and rent to find opportunities to buy a house in the future.

In contrast to Mr. Thang, Ms. Thu Minh and her husband (Hoang Mai, Hanoi) have accepted to buy back an apartment that has been put into operation at a project in Thanh Xuan for about 2 billion VND after finding out. a series of projects.

Ms. Minh said that a new apartment with a price of 2 billion is not feasible in the central area. To buy a new apartment, they have to go far away from the central area, so the couple chose to buy an apartment in the project that has been in operation for 7 years. “Although the apartment is old and degraded, it is better than having to travel far,” said Ms. Minh.

New price level

JLL Vietnam’s report shows that the number of apartments being offered for sale in the market in big cities with a value of 2 billion VND or less currently accounts for only about 10%. The supply at this low price is very limited and most of the apartments are quite small, only from 50-60m2.

“Investors are still following the trend of reducing the area to fit the needs of small families, making the apartment value still suitable for buyers. However, the number of apartments priced at less than 2 billion VND is still limited and this situation will not be improved in the near future”, JLL Vietnam commented.

According to the survey, in the last 2 years, the apartment market has been “lifting the ground” in prices in all segments. The segment of mid-priced products, if at the time of 2018 was only about 30 million VND/m2, one year later it exceeded the threshold of 40 million VND/m2.

The Vietnam Association of Realtors (VARS) said that apartments in Hanoi are entering a price increase cycle and forming a new price ground. The increased demand for apartments, along with the delayed supply, has caused apartment prices to tend to increase in recent times.

The supply of new apartments in the period is estimated at 2,800 units, down 38% compared to the same period in 2021. Most of the new projects have not been started in the first quarter of 2022, the supply mainly comes from projects that have been implemented. before.

Do Thu Hang, Senior Director of Research and Consulting Department, Savills Hanoi analyzed that primary prices in Tu Liem district have increased by 10%/year and in Cau Giay district by 17%/year since 2017. The reason for the increase in price is due to limited supply, fewer new projects launched into the market, especially the number of projects with good legality is also decreasing.

At the same time, newly launched projects are projects that are legally guaranteed, possess a favorable location, are invested with good quality and are more fully equipped. This makes the prices of these projects higher than the average of the market, thereby causing the average primary price of the whole market in recent years to continuously increase. In addition, the good projects that have been launched in the past, when the conditions are good, the price also grows and the absorption rate remains at a good level.

Hang said: “In the long term, the demand for apartments and apartments remains good. Population growth, rising middle class, urbanization rate and economic recovery are factors contributing to the demand for housing.

Commenting on the market in the coming time, VARS believes that the apartment real estate market is forming a new price level when the supply continues to not keep up with the needs of investors and residents – especially in the near future. The trend of urbanization is becoming more and more obvious today.

Most of the upcoming projects in Hanoi and Ho Chi Minh City are located in districts far from the center, where land is still abundant. The constantly improving infrastructure will continue to push the prices of these projects higher in the future.

Mr. Tu

15-25 million VND/m2: Poor people buy social housingThe average selling price of social housing is at 15 million VND/m2, in some areas up to 21-25 million VND/m2 or higher, making many poor people inaccessible.