Prime Location and Renovation Plans Drive Up Prices

Huu Hai's 80-square-meter apartment in Ba Dinh District, Hanoi, is on the market for VND6 billion (US$234,800), a price he justifies by its ground-floor location and business potential. Acquired and renovated for VND3.6 billion in 2023, this property is part of the Thanh Cong complex, earmarked for city-led renovations.

Renovation and Reconstruction: A Game Changer

The Thanh Cong complex, among ten old buildings slated for renovation by 2025, may see its 68 low-rise buildings replaced with structures up to 40 floors high. This prospect has fueled a surge in apartment prices, now ranging between VND90-120 million per square meter.

Market Dynamics: Sellers' High Hopes vs. Buyers' Hesitation

While sellers demand premium prices for these decades-old apartments, buyers remain cautious, with properties around VND4 billion facing sluggish sales. The prime downtown location, however, continues to attract interest, despite the allure of newer projects in distant districts.

Expert Advice: Caution Amid the Boom

Real estate experts like Nguyen Anh Tuan and Nguyen Chi Thanh warn of the risks in rushing into purchases at peak prices, advising buyers to weigh their options carefully in this booming market.