After being "frozen", mini apartments are suddenly being sought after again

Immediately after the tragic fire at a mini apartment building in Khuong Ha (Hanoi), many other mini apartments were immediately put up for sale at a loss, but no one bought them, causing the market to fall into a "frozen" transaction situation.

However, since November, many investors and customers have started to look to buy this type again.

Mr. Nguyen Manh Ha (broker in Dong Da area, Hanoi) said that for nearly a month now, many investors have started asking him about mini apartment buildings for sale in Dong Da and Ba Dinh districts.

"If a few months ago, I posted a sale ad but didn't get a single call for a whole week, then for nearly a month now, the number of calls has increased significantly. There are days when I receive 2-3 interested customers.", Mr. Ha said.

Two weeks ago, Mr. Ha was very surprised when an investor put down money to buy a mini apartment building with an area of ​​nearly 200 square meters and 6 floors for more than 20 billion VND.

This apartment building was completed right at the time of the Khuong Ha fire, so even though it was put up for sale for a long time, no one was interested. The owner offered the price before the fire was 32 billion VND, but then reduced it to 27 - 28 billion VND and no one asked.

"Who would have thought that by the end of November, an investor would have bought the entire mini apartment building. The new owner plans to install fire protection equipment and then sell each apartment to the new owner.", Mr. Ha shared.

Ms. Truong Lan Anh (real estate broker in Thanh Xuan district, Hanoi) also shared that since the beginning of November, she has been surprised that many customers and investors are interested in the mini apartment market.

According to Ms. Lan Anh, her colleague, the number of transactions for mini apartments has increased significantly. Many mini apartment buildings that were previously advertised for sale without any buyers have now found new owners.

"After the fire, most investors were forced to carefully equip fire escape ladders and fire fighting equipment, so customer psychology also changed a lot. In particular, many customers were careful to learn and equip themselves with rescue tools to prevent fire from occurring.", Ms. Lan Anh said.

According to a survey by Batdongsan.com.vn, some mini apartment buildings for sale in September and October were transferred to new owners between the end of November and the end of December 2023. The number of people looking to rent and buy mini apartments is also larger.

Real estate brokers said that the growth in both the sales and rental markets of this segment in December 2023 increased by about 40% compared to October 2023.

Explaining why the mini apartment market suddenly became active again, Mr. Giang Anh Tuan - Director of Tuan Anh Real Estate said that there are 4 main reasons why mini apartments become attractive to customers and investors.

Firstly, at the end of November 2023, the Housing Law (amended) was passed by the National Assembly, mini apartments will be considered for granting certificates (pink books) according to the Land Law and will be sold and rented.

Specifically, Article 57 of the amended Housing Law stipulates that individuals who want to build mini apartments (houses with 2 or more floors, each floor has apartments, or 2 or more floors and a scale of 20 apartments or more) for sale or rent must meet the conditions for being an investor in a housing construction project.

Apartments that are eligible for a certificate under the land law (pink book) will be sold, leased, or lease-purchased in accordance with the Housing Law and the Real Estate Business Law.

"The fact that the Housing Law (amended) regulates the development of multi-storey, multi-apartment housing for individuals for sale and rent, as well as the granting of certificates, is one of the most important factors that makes this type of housing vibrant again.", Mr. Tuan explained.

Second, the current price of apartments in Hanoi is being pushed up too high, even apartments under 25 million VND/m2 have disappeared from the market. In this context, mini apartments with prices of around 1.5 billion VND will meet the needs of the majority of people.

Third, after the fire in Khuong Ha, the mini apartment market almost froze, many people even rushed to "run away" from mini apartments. This caused the price of mini apartments to decrease, so this is a very good time to buy to live or invest to catch the wave in the future.

Fourth, after the fire in Khuong Ha, the authorities have been very strict in handling violations, so mini apartments are now equipped with fire prevention and fighting equipment as well as fire escapes. Users are also somewhat assured about the safety of these apartments, so they are no longer as scared as they were when the fire first occurred.

"Reasonable price, while this type has been regulated by law, recognized and certified, has made many quick investors return to the market, taking advantage of the opportunity to stock up.", Mr. Tuan explained.

According to Mr. Tran Tuan Nam, a long-time real estate broker in Hanoi, the mini apartment market is bustling again because savings interest rates are too low, causing many people with about 1 billion in savings to want to withdraw money to buy real estate.