Housing prices more stable in Hanoi and HCM City in 2021
Land prices will maintain or just slightly increase in the two biggest cities of Hanoi and Ho Chi Minh City this year as supply improves according to the Vietnam Association of Realtors (VARS).
People come to buy land in Hanoi
Speaking at a meeting held on January 11 to announce the report on the real estate market in 2020, Nguyen Van Dinh, vice chairman of Vietnam Association of Realtors (VARS), said 2020 saw a big transition in investment to the real estate market, driving up demand.
"This has made the land market hot with soaring prices, especially in some outlying rural districts which are seeing fast urbanisation including Thach That, Hoai Duc, and Dong Anh," Dinh said. "Some areas in these districts saw land prices increasing by 50% against the prices of 2019 to VND25-VND30 million (USD1,087-USD1,304) per square metre."
Explaining the sharp rise in land prices, Do Thu Hang, senior director of advisory services at Savills Hanoi said that instead of getting commissions from owners, many dealers are charging higher prices than set by owners.
"I know a man who paid VND1 billion (USD43,478) to a dealer to buy a land lot in Dong Anh District," Hang explained. "However, the price set by the owner was only VND650 million (USD28,260)."
The expert stressed that this is a common situation now which has inflated the land prices in Hanoi.
Higher supply but no price fall in Hanoi and Ho Chi Minh City this year
The Vietnam Association of Realtors's report estimates that housing prices in Hanoi will maintain or just slightly increase this year compared to 2020 as supplies improve.
Meanwhile, Ho Chi Minh City will continue to witness rising prices, mostly in the newly-established Thu Duc City, in the first six months of this year.
"The prices may be more stable in the final months due to higher supplies but there will be no fall," Dinh said.
"At well-invested urban areas in Hanoi and Ho Chi Minh City, land and apartment prices will continue to rise by 5-10 per cent in 2021," he added.
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