Brian Jeffrey
Struggles in a Booming Real Estate Market
Ngoc Giao, a resident of Cau Giay district in Hanoi, expressed her frustration: “Though everyone claims the real estate market is thriving, I have been unable to sell my apartment after three months of listings.”
She purchased her 70 square meter apartment in October 2022 for VND2 billion, which amounted to VND28 million per square meter. Despite the apparent rise in housing prices, her apartment remains on the market.
While Giao and her neighbors receive frequent inquiries from brokers eager to buy, the suggested prices fluctuate significantly from week to week. This has led Giao to discover that similar units in her building are being listed at VND57-60 million per square meter, effectively doubling in price over just two years. Her intention was to sell her old apartment to upgrade, yet it remains unsold despite the keen interest from brokers.
The apartment complex, though advantageous in location, is aging, leading to concerns about its condition.
Market Observations from Other Residents
In Bac Tu Liem district, Nguyen Hang also noted that despite the continuous reports of rising apartment prices, selling remains a challenge. Some owners who had bought units as investments are struggling to find buyers, leading them to rent them out again at VND11 million per month.
Hang purchased her apartment in 2018 for VND24 million per square meter, whereas listings by other owners in her building now ask for about VND60 million per square meter. “Whispers among residents suggest prices could soar to VND80-100 million per square meter given the market conditions, yet I only see inquiries without any new occupants,” she remarked.
Current Market Trends and Analysis
The Ministry of Construction (MOC) reported that apartment prices have risen 4-6% quarterly and 22-25% annually, with some areas seeing price hikes of up to 35-40%. This surge has generated a sense of urgency among potential buyers, fearing they might miss out on further increases.
However, due to the rapid price growth, many are skeptical, believing it signals an impending bubble, prompting them to delay their buying decisions.
Additionally, inflation has made current prices exceed their real value, as some owners set their selling prices based on high quotes from brokers.
According to Le Cong, director of a real estate trading floor in Ha Dong district, current apartment prices in Hanoi are set at levels above previous records; however, he warned that many brokers and owners inflate these prices, stirring concerns over a potential artificial market surge.
With the market condition being overly heated, buyers are advised to proceed with caution.
An analyst noted that brokers may manipulate perceptions about rising prices, creating a sense of urgency for buyers. He urged both buyers and sellers to seek diverse information sources to ascertain the true value of properties.
A recent survey by VietNamNet indicated that while 40% of respondents believed it was a good time to buy a house, 55% preferred to wait until prices decrease, deeming current valuations unreasonable.
