“People all say the real estate market is feverish, but I still cannot sell my apartment after three months of advertising,” said Ngoc Giao of Cau Giay district in Hanoi. 

Giao and her family live in an old resettlement house, 70 sq m, which they bought in October 2022 fir VND2 billion, or VND28 million per sq m.

As the real estate market is hot, the apartment has become more expensive. Giao and her neighbors often receive calls from real estate brokers who ask if they want to sell. The prices suggested by the brokers are high, and change weekly and monthly.

Giao learned from chat groups and real estate websites that the apartments in the same building are being offered at VND57-60 million per sq m. Just within two years, housing prices have increased by twofold, which prompted her to sell the old apartment to buy another one.

“I posted an ad about my apartment in July. A lot of brokers contacted me and came directly to the apartment. However, the apartment remains unsold,” she said.

The apartment building is located in an advantageous position, but as it was built many years ago, and the units have begun to degrade. 

Nguyen Hang, who lives in a residential quarter in Bac Tu Liem district in Hanoi, said she had heard about apartment price increases often these days, but it is not easy to sell housing now.

“Some people bought apartments in the same apartment building of mine and leased apartments for profit. As they heard that prices had increased rapidly, they decided to sell the apartments, but they still cannot find buyers,” Hang said.

“Perhaps they changed their mind because the apartments remain unsold. They have once again leased apartments for VND11 million a month,” she said.

Hang bought her apartment in 2018 at just VND24 million per sq m. The owners of other apartments in the same building wanted to sell at VND60 million per sq m.

“Residents whisper in each other’s ears that the apartments could sell at VND80-100 million per sq m as the real estate market is hot. However, I only see people coming to ask information, not new people moving in,” she said.

Cautiousness

The Ministry of Construction’s (MOC) report about the real estate market in the third quarter 2024 showed that apartment prices continued to increase, by 4-6 percent quarter on quarter, and 22-25 percent annually. In some areas, prices increases were up to 35-40 percent.

According to real estate experts, when apartment prices increase, some people might have FOMO (fear of missing out), and want to buy apartments immediately for fear that prices will increase further. However, as the prices increase rapidly within a short time, many people think it is just a real estate bubble and postpone purchase plans, waiting for prices to go down.

Another reason that makes it difficult to sell apartments is inflation. The selling prices have become much higher than the real value. Some apartment owners quote prices after considering prices offered by real estate brokers.

Le Cong, director of a real estate trading floor in Ha Dong district, said new price levels for apartments in Hanoi have been set higher than previous ones. However, the prices quoted by many brokers and apartment owners are too high, thus raising fears about an artificial fever and real estate bubble.

In such conditions, buyers have been advised to remain cautious when buying housing now, when the market is too hot.

An analyst said brokers play tricks to push apartment prices up and make people think that prices are skyrocketing and that making purchases now is a wise decision. He said buyers and sellers should seek information from different sources and learn about the real value of real estate.

VietNamNet, which conducted a quick survey recently, found that 40 percent of people polled thought it would be better to buy houses now, while 55 percent said it would be better to wait and only make a purchase when the prices go down, because current prices are unreasonable.

Hong Khanh