The mini apartment segment is “reviving”
According to a survey by Batdongsan.com.vn, a number of mini apartment buildings offered 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 the growth in both the sales and rental market of this segment in December 2023 increased by about 40% compared to October 2023.
Mr. Hoang Thanh, a mini apartment broker in Hanoi, said that the return growth of mini apartment buying and selling and leasing activities comes from the fact that bank interest rates have dropped sharply, along with the need for security. Population continues to increase. In particular, by the end of 2023, it is expected that the demand for buying mini apartments will continue to increase because the supply of affordable housing is low.
“Investors said they still buy mini apartment buildings in the inner city because this product meets real housing demand, while interest rates tend to decrease sharply towards the end of the year. After the fire, apartment buildings paid attention to and complied with fire prevention rules, so the psychology of buyers and renters was more open than before.”
Demand for buying mini apartments is starting to increase again (Photo: TN)
Mr. Nam also emphasized that house prices in Hanoi, especially in the apartment segment of commercial projects, continue to be high and increase, leading to increased rents, leaving the majority of low-income people without many options. select. Mini apartments are still a suitable product both in terms of price and criteria such as mobility, access to utilities and infrastructure for people in both aspects of purchase price and rental price.
Mr. Minh Long (from Lang Son), a resident who wants to buy a house in Hanoi, said he is looking for an apartment in the My Dinh area. However, apartment prices here are very high from 45 – 60 million VND/m2, with apartments with a small area of about 50m2 costing from 2.3 – 3 billion VND, not even many new projects open for sale. .
” I also looked at the mini apartment segment, where apartments are sold for about 700 – 800 million VND, with an area of about 40m2, including 1 living room, 1 bedroom, suitable for people living alone like me. “, Mr. Long said.
However, Mr. Long also said that although the price is cheap and in accordance with the criteria of location near his workplace, there is only a common red book for the building, not a separate pink book for each apartment, so Mr. Long still Haven’t decided to buy yet.
“Support” for mini apartments
Many real estate brokers said that the return of customers to mini apartments also stems from the positive information that this segment received at the end of November 2023, when the Housing Law (amended) was approved. Through the National Assembly, mini apartments will be considered for issuance of certificates (pink books) according to the Land Law and can be sold and rented.
Deputy Minister of Construction Nguyen Van Sinh said that previously, the construction of individual houses had regulations, but in implementation there were inadequacies. Therefore, in this (amended) Housing Law, the development of multi-storey housing and individual apartments for sale and rent, as well as the issuance of certificates, is one of the policies proposed. revised to ensure stricter security than before.
Accordingly, Article 57 of the Housing Law amends the regulations that individuals want to build mini apartments (houses with 2 floors or more, with apartments on each floor, or from 2 floors and 20 apartments or more). ) to sell or rent will have to meet the conditions of being an investor in a housing construction project. Apartments that are eligible to be granted a certificate according to land law (pink book) will be sold, rented, or lease-purchased in accordance with the Housing Law and Real Estate Business Law.
“Legalizing” mini apartments creates conditions for this segment to recover (Photo: TN)
In addition, investing in mini apartments for rent must meet construction requirements issued by the Minister of Construction. The building must meet fire prevention and fighting requirements according to the provisions of law. Thus, the legal corridor has been opened for mini apartments, creating a premise for the long-term development of this segment.
Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that mini apartments are a suitable choice that simultaneously satisfies the need for a place to live with a central location and low price. The strong development of mini apartments in recent years has made this segment become a part of urban housing. Therefore, “legislating” mini apartments is very necessary.
“The control of construction and operation of mini-apartments must be carried out strictly and regularly, fully meeting fire safety requirements. Buyers of mini-apartments also need to carefully review legal documents. regulations such as construction permit, whether the mini apartment building has fire safety approval, assessed and licensed by the Police agency or not,” Mr. Dinh said.
Some real estate experts also recommend that, although it is “legalized”, meeting the conditions for issuing pink books, being an investor in building mini apartments, fire prevention and fighting… according to Complying with the provisions of the Housing Law (amended) is also very difficult. Therefore, it is possible that many investors will take advantage of this time and take advantage of the psychology of many people who want to buy, mistakenly thinking that they will be issued pink books for each apartment, to “exit goods”. This can easily cause buyers or investors to “taste bitter fruit” in the future.