The apartment market attracts buyers, real estate in the alley “reduces heat”

DNHN - The real estate market is witnessing interesting reversals when apartment products dominate the buying and investment choices of Vietnamese people. Meanwhile, a once-popular segment of real estate in the alley “reduced heat”.

Real estate in the alley “disgraced”

Batdongsan.com.vn's real estate market report for the second quarter of 2022 has provided remarkable numbers on the housing market located in the alleys of Hanoi. Accordingly, housing and real estate in the alleys have decreased interest levels in all districts. Specifically, Dong Da district decreased by 11%, Hai Ba Trung district by 15%, Gia Lam district by 23%, Tay Ho district by 24%, Long Bien district by 25%, and Hoan Kiem district by 28%. This decrease follows a series of declines in user interest from the first quarter of 2022.

Land plots and townhouses are the dominant segments of investment choices of Vietnamese people due to the long-standing concept of the “golden land” of their ancestors. However, the above data shows that houses in the alley are being “disgraced” in the market. Disgrace has been brewing in the 2 years of the Covid-19 pandemic.

Ms Nguyen Thi Mai Anh, a real estate broker specializing in the sale of residential real estate in Hanoi, said that since the outbreak of the epidemic, the liquidity of houses and houses in small alleys has slowed down, and prices have increased insignificantly. The epidemic makes buyers afraid of the cramped, dampness - which is the weakness of houses located in alleys.

These developments also show a change in the psychology and behaviour of people looking to buy real estate. A Nielsen user study specifically named the variation in living space choices after the pandemic. Consumers tend to buy open living spaces, instead of enclosed spaces. They prioritize amenities close to their residence with amenities such as shops, markets, amusement parks, entertainment, etc.

“Low liquidity, insignificant price increase for this segment shows that the psychology of “an inch of land, an inch of gold” seems to be behind health and safety issues,” shared Mai Anh.

Apartments attract buyers to live in and invest

With changes in psychology and user behaviour, multi-utility apartment complexes clearly show advantages when focusing on creating airy living spaces, spending a lot of area building integrated utilities such as supermarket, restaurant, swimming pool, children's play area, preschool, square, walking path, etc.

Notably, the typographical features of the multi-utility apartment complex not only meet the needs of a comfortable life but also show the advantage of the problem when the apartment market is continuously establishing new price levels.

Savills' real estate market report in the fourth quarter of 2021 recorded that apartment prices in Hanoi by the end of 2021 have increased for 12 consecutive quarters. This uptrend will continue in the first half of 2022 in both primary and secondary markets. CBRE's real estate market report for the second quarter of 2022 confirms the impressive increase in prices.

Accordingly, in the primary market, the average selling price of apartments reached 1,872 USD/m2, up 27% over the same period last year. The average secondary selling price of the whole market was 9% higher than in the same period last year. The high demand for apartments is compatible with changes in psychology and user behaviour, but the market is severely scarce in quality goods and legal standards have pushed the price level up continuously.

Worth mentioning, that the price of apartments in Hanoi is increasing faster than in Ho Chi Minh City. The May 2022 market report of Batdongsan.com.vn said that apartment prices in Hanoi increased by about 8% over the same period last year, while this rate in Ho Chi Minh City was 5%. The strong price increase in both the primary and secondary markets of Hanoi apartments has been made in recent years, and investors or real buyers have made significant profits from this segment.

Actual market developments inevitably lead to the rise of apartment products in the trend of choosing a place to live or invest. In that context, it is not surprising that recently, the multi-use apartment complex Hanoi Melody Residences in the southwest of Linh Dam peninsula was launched and became a market phenomenon. The project witnessed a large number of buyers, and visitors to the project were busy throughout the week. Possesses the most abundant utility system in the area with a swimming pool complex of nearly 1,000m2, multi-purpose sports area, children's play area, preschool, shophouse with a variety of products, and 3 basements for parking. smart car… Hanoi Melody Residences has set a new standard of living in Southwest Linh Dam, attracting both real-time buyers and investors.

In addition to the top-class service and utility chain in the region, in the context of the scarce supply of Hanoi Melody Residence in the market, there are also a series of plus points, increasing the strong attraction of the project: products produced by Hung Thinh Land is developed and operated by the brand CBRE Vietnam.

The project promises not only an ideal place to live but also an investment product with a strong bounce in value and price in the future.

Thanh Tịnh