Hanoi real estate market witnessing new fever

July 6, 2009

VietNamNet Bridge – The Hanoi market is witnessing a new price fever after a rumour spread that Hanoi authorities will allow the 240 real estate projects in the former Ha Tay province to be implemented.

Once the city’s authorities officially announces the results of the check over the real estate projects, the market would get even hotter

Real estate trading floors and brokerage centres these days seem to be more bustling with visitors coming to seek information about some projects which will introduce products for sale. The products are mostly in the western area of Hanoi like Duong Noi, Van Canh, Tan Tay Do new urban areas and European Viet Kieu Village in Ha Dong district.


At Duong Noi new urban area, invested in by Nam Cuong Group, a 100 square metre house, which was priced at 17-19 million dong per square metre one month ago, had the price of 20-21 million per square metre 10 days ago and now is on offer at 28-30 million dong per square metre.


Tan Tay Do new urban area, which is just seven kilometres from Hanoi and links with the extended Cau Giay road and extended Hoang Quoc Viet road, near Nam Thang Long and Cau Dien industrial zones, and other new urban areas like Van Canh and Xuan Phuong have also seen land prices skyrocketing.


Two weeks ago, an 80 square metre land plot here was 11.8 million dong per square metre, but the price has risen to 17.5 million dong per square metre.


Though products of Van Canh project invested in by the Housing and Urban Development Corporation (HUD) have not been brought to real estate trading floors yet, brokerage centres are now still offering to sell the option to purchase the apartments of the project. In fact, apartments of HUD-invested projects have been trading on the market for the last few months.


The prices of land plots in new urban areas like Xa La or Tan Tay Do urban areas have also increased by several tens of million dong.


Other areas in Hanoi have also seen unexpected price increases. The Hoa Phat Real Estate Company’s trading floor has reported that people are seeking to purchase apartments in Hoang Mai area, including apartments at No 151 Nguyen Duc Canh and the Minh Khai project. The prices of the apartments have increased by 3-5 million dong per square metre over the last month.


Eighteen real estate trading floors in Hanoi have reported that 30 percent of successful transactions in the recent past have been deals involving real estate products in the western area, gathering projects of the belt No 4 of the city.


Pham Trung Ha, Director of Hoa Phat Company, said that the price increase is an inevitable tendency after a long period of the market cooling. The actual demand for accommodations is really big. Meanwhile, as stock prices have increased and electronic boards on stock trading floors have become green again, it is understandable that people are seeking houses for accommodation.


Meanwhile, real estate experts affirm that the Hanoi market has been witnessing the new price fever because people began to say that Hanoi authorities would allow the resumption of the 240 projects in the former Ha Tay province.

Tran Anh Dung, Director of the Ba Dinh Real Estate Consultancy and Services Company, said that once the city’s authorities officially announces the results of the check over the real estate projects, the market would get even hotter.




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