Land and house prices soar, buyers worried

Property prices keep rising despite Covid-19. Some apartments have seen prices soar by VND500 million over a period of several months.

Land and house prices soar, buyers worried

Minh Hanh and her husband are from Hung Yen. After five years of doing private business in Hanoi, they wanted to buy a house to settle down in Long Bien District, because the prices in the area are not as high as in inner districts, and infrastructure there is satisfactory.

In early 2021, a relative of Hanh bought a four-storey house on a 30 square meter plot, on a small alley of Bo De Street at VND2.2 billion. Small houses for small families with four members in the locality were priced at VND2.2-2.7 billion on average.

Hanh thought the price was reasonable, but she hesitated to buy because she needed capital for business. Also, she hoped the property prices would decrease as people have had to fasten their belts during the pandemic and may not make purchases.

But Hanh realized this was the wrong decision.

In early September, when social distancing measures were loosened, Hanh and her husband began looking for houses.

“I could not find any house in the district with the reasonable price like the one bought by my relative some months ago,” she said.

She decided to look for houses in neighboring areas, but the prices were even higher.

“A broker showed me a house on Ngoc Lam Street, 5 stories, offered at VND2.8 billion. A smaller house, on a 22 square meter plot, was offered at VND2.3 billion,” she said.

In early October, a broker asked if she wanted an unfinished house, on Tu Dinh street in Long Bien Ward. The landlord was building three semi-detached houses for sale, each with 35 square meter land plots, to be completed by the end of the year. She felt satisfied about the house, which the broker said was offered at VND2.7 billion.

However, she was later informed that VND2.7 billion was the price of some months ago, and the landlord would not sell below VND3.2 billion.

 

Finally, she decided to buy a house on a 33 square meter land plot for VND2.9 billion on a small alley of Lam Du street. The house is old and she will have to spend money to upgrade it before moving in.

“Because of my hesitancy, I missed the best time to buy houses,” she said. “No one could imagine that people would still buy houses despite job losses during the pandemic.”

The market report by a real estate website for the third quarter showed that the level of interest in real estate in Hanoi began to recover in early September, soon after the city began loosening social distancing measures. By the end of September, it had recovered by 50 percent compared with March 2021.

The upward trend in real estate prices continued in the last nine months. Private houses and street-front houses saw the sharpest price increase, by 11-13 percent and 7-17 percent, respectively.

Suburban districts saw the biggest increases, especially Long Bien, Hoang Mai and Ha Dong.

The Ministry of Construction’s Q3 report about the real estate market showed that property transactions were affected during the pandemic, as buyers and sellers could not meet amid lockdowns.

However, as demand is always strong, and investors are making every effort to boost sales, the number of transactions is still relatively good.

The ministry believes there won’t be any groundbreaking changes in the real estate market from now to the end of the year, as the southern economy is still incurring losses because of the pandemic. However, real estate liquidity will increase again, thus pushing prices up, when the pandemic ends. 

Thuy Minh

Land prices rise in suburban Hanoi due to planning rumours

Land prices rise in suburban Hanoi due to planning rumours

The Hanoi property market is once again seeing a wave of increased land prices in suburban areas, thanks to rumours of some districts being developed under the model of "city within a city".

Construction Ministry to conduct inspections of land fund for social housing in 11 provinces and cities next year

Construction Ministry to conduct inspections of land fund for social housing in 11 provinces and cities next year

The Ministry of Construction will inspect the management and use of funds for the maintenance of apartment buildings as well as the implementation of holding land funds for building social housing in 11 provinces and cities next year.

 
 

Other News

.
National Assembly Committees warn of over-expenditures, public debt increases
National Assembly Committees warn of over-expenditures, public debt increases
FEATUREicon  02/01/2022 

After Vietnam launches a stimulus package by pumping more money into the economy, increases in over-expenditures and public debt are expected to occur.

10 most outstanding events in southern property market in 2021
10 most outstanding events in southern property market in 2021
FEATUREicon  31/12/2021 

Land prices escalated despite Covid-19, which forced many people to tighten their purse strings.

E-commerce platforms win big in 2021 amid pandemic
E-commerce platforms win big in 2021 amid pandemic
FEATUREicon  31/12/2021 

The Covid-19 pandemic has turned out to be a golden opportunity for e-commerce platforms as online shopping was the only alternative to obtain essentials during lockdown.

Land prices in a whirl in 2021
Land prices in a whirl in 2021
FEATUREicon  02/01/2022 

Prices at land auctions in the last months of the year have been climbing to new highs.

Agricultural production must not fall back in 2022: Prime Minister
Agricultural production must not fall back in 2022: Prime Minister
FEATUREicon  31/12/2021 

It’s necessary to be daring and set a high goal of exporting $50 billion worth of farm produce in 2022 as agriculture is a pillar of the economy, said Prime Minister Pham Minh Chinh at a conference on December 29.

Stock market 2021: records broken
Stock market 2021: records broken
FEATUREicon  30/12/2021 

Covid-19 posed difficulties to many people in 2021, but not to securities investors. They earned big money as the VN Index climbed to new highs.

Hanoi warned of more serious traffic jams if it bans motorbikes too soon
Hanoi warned of more serious traffic jams if it bans motorbikes too soon
FEATUREicon  30/12/2021 

If Hanoi authorities prohibit motorbikes by 2025 in the center, when the public transport network is still not capable of satisfying people’s demand, many would have to use private cars. If so, the traffic would be even worse.

Tourism 2021: opens today, closes tomorrow
Tourism 2021: opens today, closes tomorrow
FEATUREicon  29/12/2021 

The tourism industry experienced another tough year in 2021 as policies applied by local authorities changed often.

Vietnamese films in 2021: from the best to the worst
Vietnamese films in 2021: from the best to the worst
FEATUREicon  02/01/2022 

Audiences witnessed some successful movies in 2021 that broke the record as well as some projects that incurred financial losses in the Vietnamese film industry.

Farm export deadlock at border gates: long-term solution needed
Farm export deadlock at border gates: long-term solution needed
FEATUREicon  29/12/2021 

Preliminary treatment centers and cold storage warehouses along the border and systematic logistics chains are both needed, experts said.

Finance ministry proposes tax policy to prevent land speculation
Finance ministry proposes tax policy to prevent land speculation
FEATUREicon  29/12/2021 

Prime Minister Pham Minh Chinh has assigned the Ministry of Finance (MOF) to study and design some kinds of tax related to the real estate market, including property tax, in order to stabilize the market and reduce speculation.

Tourism reopening: ‘slow’ means ‘losing’
Tourism reopening: ‘slow’ means ‘losing’
FEATUREicon  31/12/2021 

Covid-19 in the last few years brought the world’s tourism to its knees. Current opportunities exist but if Vietnam starts the new race later than other countries, it will lose.

ESports could be lucrative for 4G, 5G service providers
ESports could be lucrative for 4G, 5G service providers
FEATUREicon  28/12/2021 

As the telecommunication market is getting saturated, new content services such as livestream and e-sports are expected to help telecom carriers maintain growth.

5,000 container trucks stuck at border gates amid 50 talks with China
5,000 container trucks stuck at border gates amid 50 talks with China
FEATUREicon  27/12/2021 

The Ministry of Industry and Trade (MOIT) reported that 1,555 trucks carrying exports to China are stuck in Quang Ninh as of December 25, and 4,204 in Lang Son as of December 25. Some of them have been deadlocked for a month.

Thu Thiem land auction puts an end to sale of public land at low prices
Thu Thiem land auction puts an end to sale of public land at low prices
FEATUREicon  28/12/2021 

Four land plots in advantageous positions in the new urban area of Thu Thiem in HCM City were sold for VND37.346 trillion through an auction recently.

Hanoi needs to change its way of managing Covid patient treatment
Hanoi needs to change its way of managing Covid patient treatment
FEATUREicon  28/12/2021 

As the number of Covid-19 cases is increasing day by day in Hanoi, the municipal authorities need to create another scenario.

Vietnamese farmers benefit from high-tech
Vietnamese farmers benefit from high-tech
FEATUREicon  30/12/2021 

In recent years, thanks to the introduction of digital technology into agricultural production, Vietnamese farmers have earned millions of US dollars or even tens of millions of dollars.

Casinos suffer heavy losses, wait for brighter days
Casinos suffer heavy losses, wait for brighter days
FEATUREicon  25/12/2021 

As many as 56 businesses in Vietnam are licensed to provide prize-winning games at 63 hotels and nine casino businesses.

Metaverse: the race to enter the virtual universe
Metaverse: the race to enter the virtual universe
FEATUREicon  27/12/2021 

Metaverse is very close to human life. Right now, government agencies, businesses and citizens need a way to be ready to adapt to a future world.

Real estate 2021: sales rise despite high prices, Covid-19
Real estate 2021: sales rise despite high prices, Covid-19
FEATUREicon  01/01/2022 

Contrary to all predictions, real estate prices continued to rise in 2021 despite Covid-19, which was expected to affect demand.

 
 
 
Leave your comment on an article

OR QUICK LOGIN