Customers 'change their minds' because they complain that land and houses are too expensive.

Trading volume decreased.

With 5,2 billion VND in hand, Mr. Tran Van Minh (from Nam Dinh province) thought he could buy a private house of about 35-40 m² in a spacious alley. But after many days of searching, Mr. Minh was disappointed because that amount of money could only buy a 30 m² house located deep in a narrow alley (less than 2 meters wide).

"About two or three years ago, my friend bought a 30 m² house in an alley accessible by car for around 2,8 - 3 billion VND. But now, I have over 5 billion VND and can't even afford a house in an alley accessible by car. I'm truly surprised by how quickly real estate prices have increased.", Mr. Minh sighed.

According to Minh, if 5,2 billion VND meant living in a house in a narrow, deep alley, he would choose to buy a modest apartment of about 90 m², which would offer much better living conditions.

"With house prices so high, I think it's better to put the money in a savings account and use the interest to rent a place to live than to buy a cramped house with no living space.", Mr. Minh expressed.

In fact, surveys show that in the first few months of this year, many customers have lost interest in the residential property segment. The clearest evidence is the sharp decline in transaction volume.

Theo dữ liệu từ Trung tâm Nghiên cứu Thị trường và Am hiểu Khách hàng One Mount Group, trong quý I/2025, Hà Nội ghi nhận khoảng 18.300 giao dịch bất động sản, giảm 14% so với cùng kỳ năm 2024.

The main reason stems from the sharp decline in the residential land segment, especially in inner-city areas such as Hoang Mai, Gia Lam, Dong Da, Long Bien, etc.

Typically, in March, the residential real estate market in Hoang Mai district continued its downward trend, with transaction volume decreasing by 26% compared to the previous month. Compared to the same period in 2024, the decrease was even more significant, reaching 40%.

Similarly, the land market in Dong Da district also witnessed a sharp decline in March. This district experienced the largest drop among Hanoi's inner districts, with transaction volumes decreasing by as much as 70% compared to the previous month.

Tuy giao dịch sụt giảm nhưng theo One Housing, giá đất thổ cư ở nhiều quận, huyện vùng ven như Long Biên, Gia Lâm lại tăng hơn 30% so cùng kỳ.

Surveys on several real estate websites also show that the current price of residential land has increased by 30-40% in just one year.

Specifically, the current price of houses and land in Long Bien district ranges from 100-135 million VND per square meter (depending on location and condition of the house), an increase of about 30-40% after one year. For example, a 52 m² house in an alley accessible by car is being advertised for 6,2 billion VND, equivalent to about 125 million VND/m².

Even many houses in small alleys in Nam Tu Liem and Ha Dong districts, where cars cannot reach, are being offered for sale at 200-250 million VND/m², depending on the area, characteristics of the land, and the condition of the property upon handover.

Compared to the beginning of last year, this price has increased by more than 30%, ranging from 9-15 billion VND for an area of ​​40-60 m². This is comparable to the price of some street-front houses in the same area.

Anh Đỗ Hòa Biên, một môi giới chuyên phân khúc đất thổ cư nội đô, đánh giá đây là giai đoạn mà người mua và người bán vẫn đang “giằng co”, chờ đợi những tín hiệu rõ ràng hơn từ thị trường.

"Khó khăn lớn nhất khiến các giao dịch chưa thể thành công là do người mua có tâm lý muốn giữ tiền, chờ bất động sản giảm thêm", Mr. Bien remarked.

According to Mr. Bien, many customers found the price increase too high, but not commensurate with the true value, so many people "changed their minds" and switched to buying apartments to live in or renting, saving money or investing in land in provinces surrounding Hanoi.

Prices peak, residential land and houses criticized as expensive.

Explaining the sharp decline in land and house transactions, experts from One Mount Group say that despite the significant drop in transactions, the price level of residential real estate in Hanoi remains high (ranging from 4 to 5 billion VND). This figure exceeds the affordability of genuine homebuyers.

With incomes lagging behind rising prices, most customers tend to postpone their home-buying plans or look for opportunities in more distant areas.

In addition, seeing that prices had become excessively high, many investors began shifting their investment capital.

Instead of continuing to invest in the inner-city market with high prices and low liquidity, many investors have shifted their focus to neighboring provinces such as Hung Yen and Bac Ninh... to anticipate information about urban planning and administrative mergers.

Furthermore, many investors are hesitant due to economic fluctuations; they are reluctant to invest immediately and prefer to wait for prices to fall.

Sharing the same view on the shift in investor capital flows, Mr. Le Dinh Chung, General Director of SGO Homes Investment and Development Joint Stock Company, also noted that the Hanoi market showed signs of stagnation and slight decline in the last two months of 2024. Since then, there has also been a trend of investors seeking opportunities outside of Hanoi.

"The high real estate prices in Hanoi are causing investors to withdraw from the market and shift their focus to neighboring areas. Their current strategy is to accumulate land in suburban areas rather than engage in short-term speculation. They want to capitalize on future development as infrastructure improves, especially in industrial zones. Legal compliance is considered a key factor in this process.", Mr. Chung emphasized.

According to real estate expert Dinh Minh Tuan, the average asking price for properties in Hanoi has increased significantly across most segments. This price adjustment has led to a decline in transaction volume, and this trend may continue sideways throughout this year.

"The sharp price increase over the past two years has made properties unaffordable for genuine homebuyers, and even investors have become more cautious. Furthermore, after the period of rapid price increases, the wait-and-see attitude of buyers also significantly impacted transactions during this time. Genuine homebuyers haven't found suitable properties, while investors are selling and waiting.", Mr. Tuan said.

Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS), also believes that the reason many customers are turning away from buying land and houses is because the prices in this segment have now peaked.

According to him, all segments of the Hanoi real estate market have seen sharp price increases recently, including land and houses. Specifically, the price of land and houses in Hanoi also recorded a similar sharp increase at the end of 2021. By mid-2022, when the market became difficult, prices for this type of property decreased, but not significantly compared to the increase.

"Currently, house prices in Hanoi have peaked, so buyers need to consider their options very carefully. To avoid getting lost in the current "maze" of prices in Hanoi, buyers should choose a reputable agency for consultation. At the same time, buyers should take the time to thoroughly research the prices of similar houses in the same area.", Mr. Dinh offered this advice.