Houses and land for sale in Hanoi are still noisily advertised. However, buyers appear to wait and see compared to their status one month ago, thus trading volume shows signs of falling.
More for sale, less buying
Although the frozen housing price has fallen 10 – 15 per cent, even that price level is unable to heat up the property market. According to ACB’s property traders, deals are very few. Even a successful transaction is sold lower than asking price by VND1 – 5 million/square metre.
Being seen to cool down, advertised selling price of houses/land in centres still causes great shock. Asking price for hot pieces of land in central districts such as Ba Dinh, Hoan Kiem, and Dong Da, is still at record highs. The largest lot in Hanoi is being advertised at USD4000 per square metre (equivalent to VND64 million per square metre). Pieces of land located in alleys could ask for a price of VND50 – 70 million/square metre.
The price of land in suburban districts and precincts such as Thanh Tri is much lower at VND8 – 10 million/square metre. Price of land near Yen So and Hoang Mai streets is only VND12 million/square metre, and VND6.5 million/square metre for those in alleys.
In such special areas as Trung Hoa – Nhan Chinh, offering price which used to be roughly VND30 million/square metre now decreases to VND23 – 24 million/square metre, but no deals are made. Customers mainly come and check prices. Even sellers feel reluctant facing the falling market.
Meanwhile, land in areas of Hanoi expansion plan like Ha Tay, Vinh Phuc, and Hoa Binh becomes very expensive. An ACB’s property dealer said Ha Tay land has never been in such a rush for sale like it is now. Every trading exchange is overwhelmed with advertisement of “urgent transfer of land usage right” for both industrial and farming land in Hoa Lac, Xuan Mai, etc.
Though the heat in these areas is not as high as in many areas of Hanoi, prices have risen double or triple, even ten folds. Yet the number of true buyers is very modest, and the common trend is “wait and see”.
Buying not advised at this sensitive moment
An experienced real estate agent points out that those who reluctantly sell their land at the cooling time are mostly petty speculators, having bought land at record prices. When the State tightens credit borrowing, they have to sell off land to cover part of the loss. Current lending rate is at a high level of 2 per cent/month.
Nevertheless, long-term and wealthy traders are patient to wait for new movements in the gold market, as well as further adjustment of bank rates.
Like Hanoi, prices in Ho Chi Minh City also are going down. Housing prices do not pause, waiting for new market moves as just after Tet holiday, but a 10 per cent fall has already been realised.
Experts advise that price drops are not unusual, but derive from other objective reasons. First, gold price is maintained at high level, surfing the gold market sounds more efficient than the property market.
Second, credit tightening is a hard on many businesses’ psychology and pockets. As analysed by Do Duc Doi, Deputy Director of Land Statistics Department, Ministry of Natural Resources and Environment: “The market will become frozen if the state bank continues its credit contraction policy.”
He also added that buyers should be prudent with the gloomy selling market, as it is expected to fall further.
Anh Tuan
Vietnamese
