Land and the Housing Market: Reduced Prices, More Successful Transactions

 

Apartment prices in up-market urban areas such as My Dinh – Song Da and the Manor keep going down compared to earlier months in the year. Namely, apartment prices in the My Dinh – Song Da urban area and the Manor increased to around VND23 million/m2 and VND30 million/m2 respectively, down by about VND5 million/m2 compared to the beginning of the year. According to some land and housing trading centres in Cau Giay District, the number of successful transactions recently is about 50 percent up over the second quarter, especially transactions of expensive apartments valued at VND2 to 3 billion or more. The apartment price in this area tends to keep going down at a low rate as current prices have bottomed out.

 

The land and housing market in the outskirts of Hanoi is improving with an increasing number of successful transactions. A representative from the Ngoc Lam land and housing transaction centre says that the price of some  excellent land lots in Gia Thuy and Thuong Thanh wards (Long Bien District) are now standing at between VND15 and 18 million/m2 (VND4 to 5 million lower than earlier this year) is attracting many clients and many transactions have gone through.

 

Many people who are seeking to buy land and houses believe that land and house prices are standing at their lowest levels for years and this is good time to buy. Mr Tran Tien Long, who bought a 10^th storey apartment in the My Dinh – Song Da urban area says that current land and housing prices are acceptable and may prove the stability of the market.

 

Many economic experts believe that it is reasonable for land and house prices to keep stable in the future. The Jones Lang Lasalle Group, one of leading groups in the field of real estate and financial services has just revealed a global real estate transparency index which shows some improvement in Vietnam’s market.

 

Among current trends, the difficulties with capital, which the real estate market is now facing, will reduce land and house prices. In addition, the Government has provided a document directing the Ministry of Construction and other relevant sectors to increase supplies to the real estate market, especially in essential areas such as urban houses, offices and services. In particular, more projects for low income earners will be implemented in the near future, which will help to raise the supply. Therefore, the housing market will become buoyant with prices that are affordable to low and medium income earners.