New apartment "popularizes" price of 80 million VND/m2

According to the reporter's investigation, Hanoi City recently had 2 new apartment projects open for sale. The first project is located on the frontage of Nguyen Thanh Binh Street, La Khe Ward, Ha Dong District. The apartment price here fluctuates between 75 - 85 million VND/m2. Accordingly, a 53 m2 apartment with 2 bedrooms will have the lowest price of 4.3 billion VND.

New apartment projects are priced around 70 - 80 million VND/m2. Photo: Thanh Vu

Also in Ha Dong district, Mo Lao urban area (Mo Lao ward) has just opened a new apartment building for sale. With a price of 80 - 85 million VND/m2, the smallest apartment here, 45.6 m2, is also priced at more than 3.6 billion VND. As for the largest apartment, 122 m2, the price will reach 10.4 billion VND.

In addition, in Van Giang district, Hung Yen province, a luxury apartment project has just been launched. According to the investor, customers only need to spend more than 2 billion VND to have the opportunity to own a house. However, this is only the price applied to studio apartments, with an area of ​​29 - 31 m2. For apartments of 58 - 61 m2, the price will be around 3.6 - 4.5 billion VND, depending on the location.

In the secondary market, an 8-year-old social housing complex like Dai Kim Building (Dai Kim Ward, Hoang Mai District) has also reached the price of 50 million VND/m2. According to CBRE, the above amount is also the average price of old apartments in Hanoi.

“With the average income of young people ranging from 15 to 25 million VND/month, buying a 60 m2 apartment priced from 3 to 5 billion VND is unthinkable, without financial support from loan packages or from family,” experts from the Vietnam Real Estate Brokers Association said.

Be careful of bankruptcy when buying a house

Faced with this situation, many banks have launched many loan packages with attractive preferential interest rates for young people under 35 years old. However, the preferential policies only last for a few months. For example, at HDBank, the interest rate of 4.5%/year is only applied for the first 3 months. Similarly, the interest rate of 3.88%/year at LPBank is also only maintained for 3 months. At ACB, the "dream" loan interest rate only lasts for about 90 days.

At KienlongBank, the 0% interest rate only exists for the first month for loans of 11 months or more. If you choose the preferential loan package for the first 3 months, the interest rate will be 5.9%/year. For loans of 48 months or more, the preferential interest rate for the first 6 months will be 6.5%/year.

When the preferential period ends, the loan interest rate will float according to the market, averaging around 11 - 12%/year.

Talking to reporters of the Investment Electronic Newspaper - Baodautu.vn , Dr. Nguyen Tri Hieu, Director of the Institute for Research and Development of Global Financial and Real Estate Markets, said that many brokers always urge home buyers to borrow money from banks to pay in installments. However, they do not care how their customers will manage the debt. If the borrower does not pay on time, the house they have always dreamed of will be confiscated, and the dream of owning a home will become more and more distant.

“Many banks are launching home loan packages with very low preferential interest rates. However, the preferential period only lasts for a short period of time, from 3 to 6 months. After that, the interest rate will return to the floating rate, based on the deposit interest rate plus an interest rate margin of 3 to 5%,” Dr. Nguyen Tri Hieu analyzed.

Faced with the problem of borrowing money to buy a house, experts from the Vietnam Association of Realtors (VARS) have made a calculation with a loan of 2.5 billion VND. Suppose, the home buyer will choose a loan package with a preferential interest rate of 4% in the first 6 months, a principal grace period of 5 years and a floating interest rate ranging from 11 - 14%/year.

In the above case, the home buyer will have to pay the bank an average of 27 - 30 million VND/month. This is not a small number for young people. When compared with the principle of housing costs not exceeding 30% of income, each individual or household mentioned above must earn 90 million/month to ensure financial balance.

At the same time, VARS emphasizes that taking out a home loan when finances are not yet stable can push many young people into a spiral of long-term debt. In fact, in many cases, after the preferential period ends, interest rates increase, making monthly repayments beyond their ability to pay. In addition, unexpected economic fluctuations can reduce income, forcing borrowers to sell their homes to cover living expenses and repay debts.

“Therefore, young people need to consider carefully before deciding to borrow money to buy a house. Instead of buying a house in the city center at a high price, young people can look for suburban areas where real estate prices are more reasonable. Or try to save at least 30 - 50% of the house value before borrowing to reduce debt repayment pressure. If choosing to borrow, home buyers need to carefully calculate the interest rate after the preferential period to ensure long-term affordability,” VARS recommends.

In addition, the Association expects the State to soon research and develop a fund for long-term rental housing at low prices, prioritizing young workers, civil servants, young intellectuals, and workers in key industries. At the same time, research and develop low-interest and long-term fixed-interest loan packages.