From the beginning of 2017, the real estate market in Vietnam shows signs of slowing down and decreasing. In particular, the Hanoi apartment project has a sharp decline that many investors plunge.
Why are Hanoi apartment projects reduced? What are the actual situation and the cause of this situation?
Apartment discount in Hanoi
According to statistics from the fourth quarter of 2016, most of the real estate is the Hanoi apartment has a sharp decline. Accordingly, the price index of some apartment buildings in Hanoi decreased by 25% since 2011, especially in Tu Liem district.
In the popular segment: Hoang Mai apartment sales index from late 2016 has a noticeable decline of about 15% compared to 2011.
In the middle segment: the index of people buying apartments in the fourth quarter of 2016 in North Tu Liem fell by 26.31%; Nam Tu Liem reduced by 25.53%; Hoang Mai district decreased about 24.73% compared to the quarter I / 2011.
In the high-end segment: Nam Dinh apartment sales plunged by 24.03% in the fourth quarter of 2016, while Tay Ho district dropped by nearly 20%; Thanh Xuan district decreased slightly by 5%.
In addition, from the beginning of 2017, the number of apartment buildings in Hanoi will increase sharply. It is estimated that about 75,000 apartments will be completed and offered for sale this year. The high supply has made the housing market to dilute, creating conditions for people to buy houses to stay.
Dispute – the main reason for the price drop of Hanoi apartment
In reality, the real estate market of the Hanoi apartment block is selling exciting loss. Currently, in the city of Hanoi, some projects of selling condominiums that are in dispute, such as Home City, Golden West, Ecolife, etc., have the price of condominiums in these projects falling down.
Some investor projects to sell the house and buy power to buy condominiums accept the loss of VND 1- 2 million /sqm; Some other projects suffered a loss of VND 3-5 million /sqm. The apartments are continuously reducing the average price of 100 – 300 million per unit, the speculators buy Hanoi apartment for sale in the face of the risk of cutting losses from a few hundred to billions.
The sharp price drop in Hanoi apartment projects is not merely a general downward trend, but is affected by design and quality conflicts; the infrastructure; utility apartment or home delivery time…
In addition to new projects, Hanoi apartment projects have been handed over for many years but lack of legal procedures (ownership, red book, time of use …) also makes people afraid to buy condominiums so, the prices are falling.
Some other factors that reduce the price of Hanoi apartment
In fact, many apartment owners in Hanoi are not based on the cost and quality of the apartments, but on the market price or the price of other projects. The situation of self-determination of selling this apartment inadvertently pushed higher house prices, inadvertently pushing the price up high.
The Hanoi People’s Committee has issued policies to force the seller to re-sell 20-50% of the city’s total payment as a cost that forced contractors to raise the selling price of condominiums for profit…
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The Ministry of Construction, the Department of Natural Resources and the Environment lacked a rigorous assessment, review, and examination that made self-determined and self-evaluating tenders cause serious problems. They not only affected directly to the Hanoi apartment market in general but also affected the beauty of the city in the lack of planning.
On the other hand, when the imbalance in selling prices of condominiums will lead to the cause of the transaction. Speculators in Hanoi apartment or sell off to reduce losses or hug the bad impact on the market.
If the status of buying and selling of condominiums in Ho Chi Minh City is very exciting and developing in the past few years, Hanoi apartments are showing signs of slowing down and falling sharply. To improve the situation and revive the Hanoi real estate segment, investors need to pay attention to addressing risk factors and especially unwarranted disputes.
You are reading the article “Apartment Prices In Hanoi Fell Sharply Than Ever Due To Disputes” in the section “Real Estate News” on the website: https://realestatevietnam.com.vn/
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