11:46:23 AM | 23/10/2007
“Price fever” of real estate in Hanoi has been heated up in many modern urban zones such as Ciputra, the Manor, Trung Hoa - Nhan Chinh urban area. Prices on villa and high class apartments have been raised sharply due to growing demand by businessmen and people with high income in recent time.
Increase in house price in some sites up to 100 per cent!
Ms Hoa, owner of one villa and one apartment in urban zone Ciputra said, she has made up her mind not to sell these at the moment because home prices here have been rising day by day.
Particularly, villa price at current moment has risen to VND 60 million per m2 (about US$ 4.000 per m2), apartment price is more than VND 20 million per m2. Compared with price formed previously (VND 27 million per m2), villa price (including the ground) has risen in more than 2 times, and price on apartment of multi-storey buildings have risen up to 1.5 times.
In mid October 2007, Ms Hoa sold one villa in zone C4 at more than VND 60 million /m2, and buyer shouldered expenses on procedure and necessary documents. The sale division of the new project Ciputra has always replied “no information” to clients that come for buying villa and apartment (stage 3). Meanwhile, all villas and apartments belonging to the project of stage 2 in zone Ciputra were sold out long time ago .
Many rich people are interested in such urban areas as the Manor, Garden (for apartment, small office) also has got “fever”, “no home to sell” really. “All houses here have been bought for a long time, or under process of house delivery, despite large demand currently”- Mr Nguyen Duc, vice director of Company Bitexco said.
According to Mr Duc, the company has currently a small number of completed houses (large area, special comfortable, with price VND 5-7 billion per one), for which the company has no policy currently for raising prices due to small amount. However, according to real estate dealers, trade operations here are still active.
Ms Quynh Nhu – one resident of the Manor said the apartment with an area 106-216 m2, gets high demand. Price of this kind of apartment has increased about 50-60 per cent (from US$ 1,000 per m2 to US$1,600-1,650 per m2). Recently, Ms Nhu had sold the 106 m2 apartment (second storey of zone B) at price US$ 165,000. Also in zone B, another person had sold the apartment in storey six (106m2) at price US$ 180,000 in mid October.
Real Estate Company Truong Thanh has informed that every day its cadres have received constantly phones from clients asking for high class apartments. At the home trade floor ACB Hanoi, the trade amount has increased sharply. Almost all transactions have focused on private homes having price VND 1-2 billion.
Currently, apartment blocks of Vinaconex, Licogi, HUD etc have high demand to buy at different prices. According to Centre BDS Thang Long, price on building block apartment traded successfully in zone My Dinh has reached the level of about VND 14-18 million per m2. In high class apartment block, price is about US$ 1,200-1,800 per m2.
“The successful bid for the ground 1,500 m2 at price increased to VND 65.9 million per m2 (initial price was only VND 17 million per m2-PV), in the early June, had trigged certain impact on home market in this region. Apartment price in building block increased 10-20 per cent but we have no home to sell” –One expert of the centre said.
“Hanoi real estate market has initiated new “fever”, and this “fever” been triggered by many factors from market”- One real estate expert of the Hanoi real estate centre had the remark. He said, the sites where real estate has heated up with every day passing are the zones Thanh Xuan, Cau Giay, Tu Liem.
Likely a boom for real estate market?
Investigation by the Tien phong showed that prices on villa and high class apartment of building block (especially in urban zones such as Ciputra, the Manor, West Lake), having favorable locations, for example, Trung Hoa - Nhan Chinh, 93 Lo Duc or Village Viet kieu TSQ are under the “fever”.
The “fever” will take long time, according to the experts. The “fever” will last long, because after mild stage, the market has entered stage lacking commodity. In addition, price frame fixed by the state in this year also increased more than 30-50 per cent compared with price of previous stage.
Real estate dealers have remarks that there are three major reasons that triggered the growing boiling market.
Firstly, that Vietnam has joined WTO is of great impact on real estate market development, demand on real estate for foreign investors in Vietnam is also rather high. This is an amid factor that greatly influenced the development of real estate market.
Secondly, real estate market has the sensible relation with stock market. Currently, several investors have turned on the real estate market to keep capital safe.
Third reason is that legal regulations for real estate market are more express, rational, that has created much more favorable conditions for business. The Law on Real Estate Business, the Law on Real Estate Registration, the Law on Tax for Land Using.
Hanoi floor for real estate trade got the positive record: Recently, the number of successful transactions has greatly increased. Especially, successful transactions have taken far shorter time than in the past.
Real estate dealers have predicted that with many improvements on the law on residence, on import, policies on financial privileges for residence homes declared recently such as the lending for home building, buying apartments on credit be paid back gradually together with uncertainty of stock market , it is possible that the real estate market will get the boom at the end of 2007, and strong development by 2008.
T.P
Vietnamese
