1 billion apartment in chaotic times
With a price of nearly 1 billion VND, the newly launched low-cost apartment has created a fever in the market.
After Kim Van, Kim Lu, VP5 Linh apartments, VP6 Linh Dam apartment project is really creating a fever for the market. The project is invested by Dien Bien Construction Private Enterprise No. 1. It is officially offered to the market at a price of only about 13 - 15.5 million VND/m2. This is considered a quite low price compared to some projects in the same segment.
According to a survey, the price of apartments offered on the market is 200 - 350, even 400 million VND higher than the original price. A representative of a real estate floor said that the number of people and demand is too large. The project is located right on Linh Dam peninsula and has a reasonable price, so right from the opening, hundreds of investors and people with the need to buy a house have been interested in learning and placing orders.
This investor was once known for a series of low-cost apartment projects such as Xa La, Kim Van Kim Lu, VP5 Linh Dam, and was even criticized for dumping apartments.
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Cheap apartments attract customers. |
Since the beginning of the year, cash flow has returned to the real estate market, especially projects from reputable investors with good quality and infrastructure. Liquidity in the first months of the year increased sharply, causing the apartment segment in Hanoi to begin to experience a shortage of goods.
According to official information from G5 Alliance – the exclusive distributor of Bac Ha Tower project, as of the second week of May, this unit has closed contracts for 120 Bac Ha Tower apartments although the opening date is May 18, 2014. In addition, the number of customers registering to buy is also very large. The selling price of the project’s apartments is only from 1.35 billion VND.
For CT1 and CT2 Trung Van projects, secondary units have pushed the price difference up to around 100 million VND per unit. Meanwhile, apartments at 136 Ho Tung Mau project have been pushed up by brokerage units by 2 - 2.5 million VND/m2 higher than the original price...
Homebuyers have more options with many cheap apartments on sale. CT Number One apartment building costs only 11.5 million VND/m2 (including VAT and furniture). Project supermarket is introducing CT2B - HHB apartment building, Tan Tay Do urban area from only 12.6 million VND/m2 (including VAT, land use rights, finished furniture). Savills opens Berriver Long Bien apartment for sale from 1.6 billion VND.
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1 billion dong apartments are hot |
Explaining the phenomenon of fever of many apartment projects, the representative of the trading floor said that the supply of apartments in Hanoi seems to be exhausted, especially in the area from Ring Road 3 to the inner city, because for the past 2 years, there have not been many new projects implemented. Therefore, projects with good locations, reasonable prices, good construction progress are sought after and continuously appear with price differences.
A recent report from the Ministry of Construction shows that in the first three months of the year alone, the number of transactions through the floor in Hanoi reached 1,500, double that of the same period last year. In the first 15 days of April, there were 800 successful transactions.
According to Deputy Minister of Construction Nguyen Tran Nam, projects with suitable apartment structures, selling prices of around 20 million VND/m2 or projects with good locations, 70-80% completed have high liquidity.
“Apartments with an area of less than 100 square meters are currently very difficult to buy. Projects with selling prices of over or under 20 million VND per square meter are out of stock. Projects from Ring Road 3 onwards are still trading very well, mainly for residential purposes, not for investment,” said Mr. Nam.
Comparing real estate inventory data as of December 31, 2013 with previous months shows that the value of real estate inventory nationwide has gradually decreased since March 2013 (down over 26%). The amount of apartment inventory has decreased significantly, especially small apartments.
According to the Ministry of Construction, this year investors without financial capacity and experience, investing in projects that do not meet market demand or have large loans will continue to face difficulties, and may even have to leave the market, leaving the market to professional investors.
According to reading the newspaper
