Apartment prices increase dramatically, investors switch to adjacent real estate

In the context of skyrocketing apartment prices in Hanoi , many investors have to reconsider their strategies. The adjacent real estate segment has become a brighter choice than ever.

Apartment prices increase "breathtakingly", investors switch to adjacent real estate

In the context of skyrocketing apartment prices in Hanoi, many investors have to reconsider their strategies. The adjacent real estate segment has become a brighter choice than ever.

Inner-city apartment prices "dance", investors are fed up

Hanoi apartment prices have increased continuously since the fourth quarter of 2023, in both the primary and secondary markets, with some projects even being advertised for sale at prices of up to nearly 100 million VND/m2.

Surveying a project in Thanh Xuan, Hanoi, apartments here are being offered for sale at 75-97 million VND/m2. At an apartment project in Tay Mo, Nam Tu Liem, the prices are being offered from 62.6-87.8 million VND/m2, an increase of 28.5% after 1 year. A project in Lang Ha, Dong Da is also being offered for sale at 90.5-125.7 million VND/m2, an increase of 30.9% over the past year.

The above prices are considered difficult to reach for real residents and difficult to increase further. At the same time, housing prices also pose challenges for investors. Mr. Son Tung (an investor in Hanoi) said: “ Rental prices do not increase in line with purchase prices, leading to a decrease in rental profits. Although I had to spend 6-7 billion VND to buy an apartment, I could only rent it out for less than 10 million/month. People who rent it out for accommodation can only pay that much. That does not include depreciation costs for furniture and repairs. I also face great risks when calculating the loan interest payment problem .”

Mr. Tung added: “Therefore , I am considering switching to investing in adjacent real estate or townhouses to create cash flow from business or rental. One is to invest in the inner city to enjoy the convenience. The other is to catch the satellite real estate wave to enjoy future infrastructure breakthroughs. But real estate prices in Hanoi are too high, so instead of investing in apartments, adjacent real estate in the suburbs with reasonable prices, with long-term land ownership rights will be a better choice .”

Comparing between apartments and townhouses, it is clear that townhouses have a significant advantage in the ability to exploit business and generate profits. With a capital of about 6-7 billion VND, if investing in apartments, investors usually only earn about 8 million VND per month from renting. Meanwhile, townhouses can bring in rental income from 18 million to over 50 million VND per month, depending on location and scale.

The highlight of Song Hong Diamond City townhouses attracts investors to the East

In the Northeast of the capital, in recent years, the traffic infrastructure has been invested in and developed rapidly, combined with the appearance of a series of livable urban areas that have attracted the attention of investors. One of those urban areas is Song Hong Diamond City.

Rising at the intersection of Highways 379 and 382, ​​thanks to its series of outstanding advantages such as prime location, synchronous infrastructure, feng shui terrain "first near the market - second near the river - third near the road" and enjoying the bustling 24/7 trade of the agricultural market, Song Hong Diamond City is a bright spot. In the 2 opening phases, the project recorded outstanding transaction volume. Many investors revealed many reasons why they gave up apartments to invest in the townhouse segment here.

Firstly, although Song Hong Diamond City and apartments have similar total prices, their usage values ​​are very different. Apartments have smaller areas, and many apartments do not come with long-term land ownership. This limits long-term use rights and the ability to make profits from real estate. Meanwhile, land ownership is a key factor in real estate investment .

Real estate often allows the owner to build, modify, or convert the use function as desired and suitable for personal or business needs. In contrast, apartments are often limited by the general regulations of the management board and the apartment ownership contract, making it more difficult to exploit business space. With real estate, investors can exploit a variety of business models: from renting premises, opening offices, to other service activities.

Perspective of townhouses and villas at Song Hong Diamond City

Mr. Nguyen Van Duc (58 years old, Hanoi) said: “ I think that the structure of apartment buildings has a time limit, the lifespan of an apartment building is usually 50-70 years and is affected by the legality of the investor. With real estate, long-term ownership helps protect investors from risks related to regulations on property ownership, especially in the case of changes in land law or planning ”.

The savvy investor also said: “ Owning real estate also allows for double profits, which means you can both live in it and rent it out, or transfer part of the space for business, creating a stable income stream and increasing the value of the property. In particular, I think that townhouses 1 and 2 at Song Hong Diamond City, located on the frontage of Road 382, ​​opposite the school and the main road, will have a very high business exploitation value .”

Second, with the choice of townhouses, homeowners will be able to use a more flexible and versatile living space than apartments . Investors achieve double profits when they can take advantage of their homes to create monthly cash flow and increase value over time. That is why townhouses at Song Hong Diamond City with a unit price of only 2x million/m2 are very attractive to investors. Townhouses create a comfortable living space while combining business and long-term rental. The bustling space of the agricultural market in the project and the wide frontage position help townhouses to exploit many business models.

Overview of Song Hong Diamond City project

Once the apartment building is operational, Song Hong Diamond City will welcome thousands of residents. The townhouses opposite this luxury apartment building can welcome a series of big fashion brands, restaurants, supermarkets... to rent to serve the needs of residents.

With outstanding advantages from strategic location to diverse exploitation potential, Song Hong Diamond City townhouses offer investors an investment channel that is not only stable but also has high profitability. When the inner-city apartment market is gradually saturated, townhouses are a smart investment choice and optimize asset value in the long term.

Source: https://baodautu.vn/batdongsan/gia-chung-cu-tang-nghet-tho-nha-dau-tu-chuyen-sang-bat-dong-san-lien-ke-d229507.html