Together with stock market rally and economic recovery, the real estate market of Hanoi is warming up.The warmth does not happen in all market segments and regions but in urban areas in former Ha Tay province.
Suburban hotspots
When the property market was gloomy, real estate prices did not slump sharply.
The demand for cheap and medium-priced segments is getting higher after a period of consideration.
Prices of houses in small alleys in the downtown of Hanoi, with individual area of 40-60 square metres, range between VND1.5 billion and VND2 billion. However, it is not quite easy to buy houses at this time although offer prices are higher. Many young families choose this kind of accommodations because they dislike travelling far to workplace and fear traffic congestions. High-grade apartments are less attractive than previously.
An office - apartment complex, N05, built by Vinaconex in Trung Hoa - Nhan Chinh area has been fully occupied. The 3.5-hectare four-building complex designed by foreign architects is near a complex with representative offices of 62 provinces and cities, underway five-star hotels and future Amsterdam High School.
Investors are eying to buy apartments in N05 section, which is close to N04. The apartment price in these sections is considered attractive in comparison with close Keangnam apartments which are offered at US$2,800 per square metre.
However, the heat of Hanoi real estate market is increasing in suburban areas, especially in former Ha Tay province which was merged with Hanoi. After Le Van Luong Street is extended, a new wave of land price will intensify in Phung Khoang, Duong Noi, Mo Lao, Van Khe and Xa La areas.
The demand for houses and land in these areas has increased after a freezing period. Prices of land in urban zones in Ha Dong district have soared in recent time.
Many investors took thick margins in land plots in Van Quan, Van Khe and Xa La. Mr Q, who lives in Hoang Quoc Viet Street, revealed that he bought a land plot at nearly VND6 million per square metre about one year and a half ago and has sold at nearly VND30 million per square metre.
Duong Noi urban zone invested by Nam Cuong Group has been fully registered although the investor has just cleared the construction site. The highest price amounts to VND48 million per square metre and the lowest is at VND23 million per square metre.
Mr Do Van Viet, assistant to the president of Nam Cuong Group, said: A customer bought five villas at a time.
Apartments invested by Geleximco along the two sides of Le Trong Tan Street are also hunted by buyers.
Warmer toward year’s end
The hunting for land plots in suburban areas of Hanoi is not diminished. According to dealers, the stock market boom and economic recovery fuelled up the real estate market.
Escalating prices of gold and loosening of foreign exchange rate prompted investors to seek effective investment channels.
Mr Vu Van Hau, Deputy Director of Geleximco Company, said the real estate market is returning to its real value. Investors will hardly take super profits.
He said prices of apartments in new urban zones are reasonably at VND15 million downwards per square metre. He thought that the property market will get warmer toward the end of this year.
T.P
Vietnamese
