Opportunity to buy houses in Hanoi by year-end

Mr. Tran Minh Tien, Director of One Mount Real Estate's Market Research and Customer Understanding Center, presented views on the projection for high-end apartment consumption in Q4 2023.

Q4/2023: The Ideal Time to Buy a House in Hanoi

- Developers provide numerous options and tempting policies to consumers wishing to acquire homes for residence. Can you advise buyers on the best options?

According to real estate market studies, such advantageous homebuying rules as we now have are uncommon. The ability to move in right away is critical for individuals looking for rapid occupancy. Buyers should hunt for homes on the secondary market or directly from developers in developments that are going to be turned over to fit this requirement.

Previously, developers would often discontinue interest rate support at the project handover period. Buyers can now locate projects in the handover phase that are still getting interest rate support. This is a distinguishing element of today's market. Notably, several basic items are available with 0% interest rate support for a period of 12-18 months. Customers who buy in the secondary market will not receive as much assistance because banks are offering 8% interest rate bonuses for 6-12 months. These are helpful policies to take advantage of for investors or buyers who do not have quick cash resources.

Depending on the date, each project may have a distinct set of incentives. Previously, there were mostly straightforward price cuts with tiny discounts or large value presents; however, new developments reveal initiatives emphasizing on flexible payment arrangements, relieving financial stress for clients. Importantly, purchasers can choose to make quarterly payments.

However, choosing a residence within one's financial means remains a top consideration. If you have around 70% of the money available, it is prudent to make an early payment and directly cut the price. Extended payment plans are recommended for persons with limit  ed financial flow.

- Why is the end of the year the best time to buy a house? Many people expect prices to decrease further. Can they wait for this to happen?

For apartments, the signs of recovery are evident. Purchasing in Q3-4 is reasonable. There couldn't be a better time; the products in the primary market never decrease in price. You can't expect further reductions, as the factors constituting the product are continuously increasing. I affirm that this is an excellent time for you to confidently buy a house. Besides attractive support policies, the current interest rates are very low.

Year 2024: What Awaits Homebuyers?

- Based on the projects scheduled to begin construction in 2024, how do you forecast the prospects for homebuyers?

Most developers experienced legal and finance issues in 2023, making it difficult to launch new projects. In this phase, only developers with sufficient financial histories and completed legal projects are allowed to start. Selecting projects from reputed developers is an important consideration for purchasers.

The Hanoi condominium market will recover vigor in 2024 as these impediments are gradually removed. According to the Market Research and Customer Understanding Center of One Mount Real Estate, roughly 16,000 new main supply units are projected next year.

Following a period of significant Foreign Direct Investment (FDI) in real estate continuously placing second among other sectors, next year will see several projects from foreign investors, both in East and West Hanoi. Homebuyers will undoubtedly have more alternatives, but the attractiveness of sales policies is dubious, as the majority of these items will be high-end.

- Should purchasers wait for better pricing in 2024, when numerous projects are being launched?

As previously said, main condominium prices are anticipated to rise over time. The following projects will mostly include high-end and luxury goods (60%). As a result, it will be difficult for condominium prices to fall in the foreseeable future.

In 2023, developers presented particularly intriguing and appealing sales strategies in order to move cash and respond to market conditions. When these challenges alleviate in 2024, such appealing insurance may no longer be accessible. As a result, while buyers will have more alternatives, prices are expected to rise.

- How would you characterize the market dynamics in the Hanoi condominium market at the conclusion of this year?

Due to macroeconomic and real estate market influences, supply and consumption were relatively low in the first half of this year compared to the yearly norm. However, the condominium market began to strengthen in Q2/2023, compared to Q1, and this trend is likely to continue into Q3.

In Q3, new releases climbed by more than 50% year on year, while Hanoi's overall consumption increased by more than 100% year on year. This trend is expected to continue throughout Q4, according to One Mount Real Estate's Market Research and Customer Understanding Center. This is the most active time of year. Furthermore, Q2-3 increased trust and demand, laying the groundwork for a brisk rebound in Q4.

In fact, when compared to other market categories, our study shows a clear and evident rebound in the Condominium/Apartment category for sale in Hanoi. This category has continuously strong demand and product values that are appropriate for the majority of the population.

Western Hanoi is projected to sell roughly 2400 homes by the end of the year, while Eastern Hanoi is scheduled to sell approximately 1600 flats. These are the two regions that will dominate the Hanoi condominium market in the next years, with several transaction choices for both residents and investors.

• Thank you!