“Bright door” for ready-built housing segment in Hai Duong

The Hai Duong real estate market is generally “going through the bottom”. However, the ready-built housing segment still records transactions. This is a real estate product line that is considered suitable for demand, within the affordable price range of the people.

Supply meets demand

Nearly 3 years ago, Mr. Le Van Hoan and his wife in Gia Loc found a pre-built house in Binh Han ward (Hai Duong city). After many consultations, the couple decided to put down the money. On a plot of land of about 50 square meters, the house was built with 3 floors, 3 bedrooms, 2 bathrooms and many other amenities. More importantly, the house has complete legal documents. "Up to now, the quality of the house is good, there are no signs of cracks or water seepage. With a price of about 1.8 billion VND at that time, finding a pre-built house in the city center was what my wife and I wanted," Mr. Hoan shared.

Just over 2 weeks ago, Mr. Ha Hong Quan and his wife in Binh Giang district paid a deposit to buy a pre-built house in Le Thanh Nghi ward (Hai Duong city). The house, after completion, will cost 2.3 billion VND, with a land area of ​​50 m2, 3 floors, a clothes drying yard, and full furniture. "My wife and I have chosen a suitable day to pay for the house and move in. The upcoming Tet Giap Thin will be very special for my family because we will be able to welcome the new year in our own house, instead of a rented house like many years ago," Mr. Quan shared.

Unlike buying land to build a house, one of the biggest differences of a pre-built house is that the home buyer cannot supervise the construction process from start to finish. Normally, houses built by reputable real estate offices or individuals with many years of experience, especially those with expertise in construction design, will create trust with customers. “Customers choose to buy cars, phones... mostly because of trust in the brand. Buying a pre-built house is similar. My husband and I, like many other families, often choose houses built by reputable investors, because the warranty period for some problems such as water seepage and cracked walls will be longer, usually more than 2 years,” said Ms. Nhu Thi My in Cam Giang when she went to see a pre-built house in Tan Binh ward (Hai Duong city).

Towards real needs

According to some real estate brokerage offices and individuals in Hai Duong city, pre-built houses are usually divided into 3 types of areas: small from 36-38 m2, medium from 40-50 m2, large from 51-54 m2. The selling price for large pre-built houses is mainly 2.3 billion VND or more, for medium from 1.5-1.9 billion VND, small from 1-1.3 billion VND. Pre-built houses often come with some pre-installed interior equipment such as kitchen cabinets, dining tables, sanitary equipment. The average construction time of each house is from 4-7 months, the construction cost accounts for 40-50% of the selling price of a pre-built house.

With more than 5 years of experience as a freelance real estate broker in Hai Duong City, Ms. Pham Thi Anh Nguyet believes that at present, house transactions are larger than land transactions. “For land lots, buyers mainly have speculative and investment needs. In the context of the current sluggish real estate market, the liquidity of this type of real estate is relatively low. On the contrary, the housing market, especially pre-built houses, still has a certain liquidity. Because this is a market that targets real housing needs, the basic price is suitable for people's ability to pay,” Ms. Nguyet said.

Sharing the same view, Mr. Ta Quang Nam, Director of Hung Nam Real Estate Office (Hai Duong City) said that although the real estate market is quiet, the real housing demand of people, especially those with average incomes, is still high. “The number of social housing units in the province is not much. Moreover, this is still an apartment building, while many people want to live in a house on the ground. Because the real estate market is in the bottom phase, the selling price of pre-built houses has also been reduced by 200-400 million VND/unit. Negotiating the purchase price is also easier. These things help the pre-built housing market to open up, especially from the beginning of the fourth quarter of 2023 onwards,” Mr. Nam shared.

From an investment perspective, real estate offices or individuals often choose large plots of land, enough to divide into 3-4 small plots for construction. This helps save construction costs, makes design easier and optimizes profits. However, the process of completing legal documents in dividing land titles according to regulations will take longer than buying each small plot. Usually, at the beginning of the second quarter of the year, investors will start buying land for construction, in time to "release" to the market at the end of the year.

However, the most important factor in real estate investment in general and pre-built houses in particular is capital. We have mentioned the situation of “death on assets” in some previous articles due to people borrowing money to buy real estate to sell for profit. Therefore, although the pre-built house market is relatively attractive, people need to consider carefully before investing.