2:51:30 PM | 15/5/2007
Prices of high-grade apartments in Hanoi remain at ceiling levels, although the real estate market has been cooling down after an overheated period, state media cited recent surveys as saying on May 11.
Surveys by CB Richard Ellis Vietnam, a well-known commercial real estate services firm, show leasing prices at high-grade trade centers in Hanoi have reached a peak at US$125 per sq.m (VAT included).
In a recent lucrative affair, Estee Lauder opened its first shop in Hanoi at the corner of Ly Thai To and Trang Tien streets, helping bring other famous brands like Esprit and Mango to the area.
Hanoi’s high-end commercial locations include Trang Tien Plaza, Hanoi Tower, V-Tower, VIKO, Vincom City Towers, Big C Thang Long, Melinh Plaza, Hoa Binh Int’l Towers, Opera Business Centre and Pacific Place.
Demand for good shop locations is increasing and foreign retail groups are actively seeking opportunities to enter the Vietnamese market after January 1, 2009, when Vietnam will open its distribution market. Meanwhile, local retailers are trying to expand their networks before 2009.
Surveys show available space at shopping malls in Hanoi is limited and the price is rising. This will be a challenge for home retailers but an advantage for foreign investors, since they have a lot of capital.
Hanoi will have more shopping area for lease soon, from real estate projects like Viet Tower at No. 1 Thai Ha Street, with total area of 15,000 sq.m, scheduled for completion in the first quarter 2008; Thai Thinh Plaza at 102 Thai Thinh Street with 11,000sq.m, to be completed in 2009; Ciputra Mall in South Thang Long new residential area, with four stories totaling 130,000sq.m for shopping and a 7,100sq.m underground level, to be completed in 2010; and The Landmark in Lieu Giai-Dao Tan streets with 19,000sq.m, to be completed in 2010.
CBRE said leasing prices at high-grade trade centers in Hanoi will increase. Vietnam’s accession to the World Trade Organization (WTO) and its opening of the distribution market in 2009 will encourage foreign retailers to enter this market.
Minister of Natural Resources and the Environment Mai Ai Truc also said a repeat of the recent land fever was not likely. (Labour)
Vietnamese
