Despite several big promotions that offer significant discounts for apartments, more and more people are seeking to buy houses instead.
Hanoians shun apartment blocks
Statistics from real estate brokerages in the western part of Hanoi showed that, despite the general slowdown in the market, there is still activity among clients with a real housing demand.
"Most customers are looking for houses with land in the price range of VND2 billion (USD95,142) or less,” said the owner of Phuc Thinh Real Estate Transaction Floor.
Another owner of a real estate company located on Huynh Thuc Khang Street commented that many people are willing to buy houses in outlying districts if they have good planning and infrastructure instead of living in an apartment in the inner city.
He attributes this to recent cases of customer dissatisfaction with bad management and sub-par construction of high-rise apartment blocks. Many residents of these buildings have been hit with unforeseen parking and service fees.
Substandard apartments
Dam Minh Chau, of Cau Giay District, decided to sell her apartment in order to buy a piece of land so she could build her own house.
“We've lived in the apartment for one year. During that time the place has deteriorated, and the service and parking fees are more than what we can afford. Every month, we have to pay nearly VND2 million (USD95.1-USD333), when our salary is just VND7. This is on top of day to day living costs,” she shared.
Ms. Thuy Hoa is in a similar situation. She has been living in an apartment block in My Dinh for two years, but is now trying to sell in order to buy a house in an outlying district.
She says, “This place is not being kept up. There has been noticeable deterioration during the two years we've lived here, including frequent power outages which force us to walk up the stairs. Still, we have to pay electricity bills and fees for service, cleaning and security. The playground is being used as a parking lot."
Attention to after-sales services
Even though the prices of apartments in the capital has dropped, in accordance with the Ministry of Construction's development strategy, many are still reluctant to move in.
Tran Nhu Trung, from Savills Vietnam, said that, due to the manipulation of prices for apartment blocks, people with real need for housing have tended to buy land in outlying areas at better prices.
"Part of the problem is unclear and complicated management procedures, which occur after the sales of apartments," Trung said.
Dang Van Quang, Director of Navigat Joint Stock Company, a real estate consultancy agency, said that people will be more willing to buy apartments when prices decrease and block operators become more reasonable with fees and the quality of management.
