The real estate market is forecasted not to fluctuate markedly thanks to the stability of related factors, including interest rate, policies, inflation, gold price and the stock market. Also, investors and buyers are more intelligent when making their decisions on today’s market.
Open door investment policies together with developing housing and land supply projects help meet the demand. Besides, demand for apartments and street houses, especially at middle and low-income segments, is still rising. Despite problems, such as fire safety or disputes between investors and local people, it is predicted that the prices of houses/land will not decrease.
According Do Thu Hang, Associate Director of the Research and Consulting Department at Savills Hanoi, low-cost apartments have seemed to disappear in the market.
The price cannot be less than 18 million VND/sq.m at some places, Hang said, adding that, “buyers should move to Hoai Duc or Gia Lam districts for bigger low-cost apartments, otherwise, investors will build smaller apartments in central locations at reasonable prices.”
Meanwhile Su Ngoc Khuong, Investment Director of Savills Vietnam said, in general, the real estate market, since the beginning of the year, has been facing some difficulties, namely land, investors’ financial capacity and compensation for site clearance.
According to Khuong, the land is limited in central Hanoi; however, it contributes 40 percent to a complete apartment, not allowing for outdoor areas surrounding apartments.
If compensation for site clearance is high, the price of an apartment will be high, too, making it hard for middle and low-income earners to access this segment, Khuong added.
Benefits brought by the segment are not as high as expected, as a result, investors are still hesitant, leading to limited supply of low-price apartments, said Khuong.
In its latest report, DKRA Vietnam forecasts that the land segment is still a target for many investors till the end of the year.
Data from some transaction centers in Hanoi showed that the selling of land on 15 roads in five western districts, namely Nam Tu Liem, Bac Tu Liem, Ha Dong, Thanh Xuan and Cau Giay, is the most bustling. The highest offering selling price is at Tran Thai Tong Street in Cau Giay District, at 161 million VND/sq.m at average. The lowest average selling price at Road No.70 in Nam Tu Liem district is nearly 34 million VND/sq.m.
Meanwhile, the average land selling prices at Xuan Dinh, Phu Dien and Co Nhue roads in Nam Tu Liem district are a bit higher, at 50 million VND/sq.m, 41 million VND/sq.m and 36 million VND/sq.m, respectively.
Similarly, in Hoai Duc District, the price of houses tends to recover. For example, an 85 sq.m private house at La Phu road is offered at 3.2 billion VND compared to 2.3-2.5 billion VND at the same period last year.
The price of residential land in An Khanh, An Thuong and Van Canh communes tends to increase by 2-3 million VND/sq.m.
These figures prove that the price of land will not be reduced compared to the previous times, even it is not at the peak any more.
