Brian Jeffrey
Kien has raised his concerns to VietNamNet regarding the steep real estate prices in Vietnam.
“In Australia, with VND22 billion, you could buy a substantial 1,100 sq m home with 5-7 bedrooms that can rent out for about VND90 million (5,400 AUD) monthly. Yet, when I tried to find a house in Hanoi with the same budget, I was told it’s not sufficient,” he expressed.
At 32 years old, Kien resides and runs his business in a coastal area near Sydney, Australia. He plans to return to Vietnam and hopes to purchase a semi-detached villa in Hanoi in a few years.
In July 2023, he started looking online and reached out to family and friends in Vietnam for assistance in locating a villa under VND25 billion.
With the help of a real estate agent, he identified a villa in My Dinh with an area of 115 sq m listed at VND25.5 billion, but he postponed the purchase due to urgent matters.
When he resumed his search in July 2024, he was taken aback by the price hikes.
A similar villa in My Dinh was now priced at VND36 billion, reflecting a 40% increase over the year.
Kien remarked that VND36 billion is not a reasonable price, noting that many similar villas in the area were available for less than VND22 billion.
The broker replied, “With VND22 billion, you won’t find anything.”
Kien was astonished by this assertion.
“In Vietnam, VND22 billion is considered significant. In Australia, it translates to about 1.3 million AUD, which is also a considerable sum. Yet, the broker claimed that it wouldn’t purchase anything in Hanoi,” he commented to VietNamNet.
He highlighted that in his coastal city, 1.3 million AUD could secure a spacious 1,100 sq m house, or a 600 sq m house in Sydney with a rental of VND70 million (4,400 AUD).
On the other hand, if he acquires a villa in My Dinh, he might need to spend an additional VND3-4 billion on renovations. The expected rental income seems low in comparison.
“Typically, larger homes have less demand and lower rental returns. I’m struggling to understand the sharp price increases within just a year,” he stated.
Kien believes that Hanoi housing prices are inflated compared to their actual worth, contrasting with Australia where prices rise around 6 percent annually, with more predictable fluctuations.
He noted a common principle in Vietnam where real estate prices double every two years.
“Logically, higher-value properties experience slower price increases, so the recent rapid escalation is baffling,” he said.
Kien encountered challenges while searching for a house in Vietnam due to the chaotic and unverified information.
“For buyers like me, we rely on brokers, but they often provide conflicting information, casting doubt on their credibility,” he explained.
“I was told by one broker that a house I was interested in had been sold, but another insisted a deposit had been paid. The next day, another broker informed me that the house was still available,” he shared.
He found it easier to navigate the real estate market in Australia, where two reputable websites facilitate the transaction process.
“A simple click allows you to access a property’s sale history—how many times it has changed hands and the prices involved,” he noted. “This transparency aids in negotiating fair prices with sellers.”
Ultimately, Kien decided against purchasing property in Hanoi, concluding that the prices are ‘unreasonably high’.
