Prices of old social housing projects in Hà Nội skyrocket

Prices of old social housing projects in Hà Nội skyrocket

The scarcity of affordable housing is a factor that pushes prices up, according to an economist.

Apartments in the nine-year-old Đại Kim Building in Hoàng Mai District, Hà Nội, are being priced 3.5 times more expensive than when they were first sold in 2016. — Photo baodautu.vn

Some social housing apartments almost a decade old in the capital city are being priced at VNĐ50-60 million (US$1,900-2,300) per square metre, which is three to four times more expensive than when they were first sold.

Located by the Tô Lich River, the Đại Kim Building in Hoàng Mai District, is also known as the Đồng Mô social housing project. When it was first sold in 2016, the price of the apartments was around VNĐ14 million ($547) per square metre, with sales targeting low-income workers.

Some brokers are now asking for VNĐ50 million per square metre for the flat, the Đầu tư (Investment) online newspaper reported.

In the same district, the Rice City Linh Đàm social housing project was sold for VNĐ15 million ($587) per square metre in 2014 and is now being priced at VNĐ60 million per square metre for fully furnished apartments.

Rice City Sông Hồng, a social housing project in Long Biên District, had its prices set at VNĐ13 million ($508) per square metre when it was launched in 2018. Now the price has soared to VNĐ47-50 million per square metre - an annual price increase of about 20 per cent.

The Ngô Thì Nhậm apartment complex in Hà Đông District was one of the first social housing projects in Hà Nội. Each apartment was sold at about VNĐ8 million ($313) per square metre in 2010, but today it is nearly impossible to find one for less than VNĐ45 million per square metre.

According to economist Đinh Trọng Thịnh, the social housing projects that have seen prices surge recently are those with completed technical and social infrastructure. They are located where basic amenities like hospitals, schools and shopping centres are readily available.

“The convenience of these areas pushes the prices up,” he said. “However, the rate of VNĐ40-50 million per square metre is still more affordable compared to commercial apartments.

“The scarcity of affordable housing is also a factor that pushes social housing prices up,” Thịnh said. 

Bizhub