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Hanoi real estate projects ‘burst open’
Hanoi’s real estate market has awakened after two months of hibernation by the news that the capital city will have five satellite urban areas. Additionally, the demise of gold trading floors has brought more capital to the real estate market.
In the first month after Tet, real estate developers launched many new projects. The first 116 apartments (Out of 512) for CT3 Hoang Quoc Viet Residential apartment bloc in the Co Nhue new urban area will be officially marketed on March 10. The apartments are between 71.6 to 161.7 square meters.
According to Nam Cuong group, the project investor, the apartments will be sold directly on the company’s real estate trading floor with starting prices of $1300 per square meter.
Song Hong Construction Corporation is going to market the Song Hong Hong Park View on Thai Ha street which includes three towers, two 19-story apartment towers and one office tower of 10 storys. Each apartment, covering an area of 75 to 185 square meters is expected to be sold at $2000-2200 per square meter.
Unimax twin apartment bloc (39 and 33 storys) in Ha Dong district includes a complex of apartments, offices and a trade centre. It is also scheduled to be marketed in the second quarter of 2010.
Low-cost apartment developers are also preparing hectically to market their products. EZ Vietnam plans to launch 700 low cost apartments in Me Linh area in the second quarter of 2010 with the “popular” price of 10 million dong per square meter.
EZ Vietnam Director Nguyen Duc Toan noted that the project targets medium-income buyers in Bac Thanh Long Industrial Zone and Cau Giay.
“The apartments to be sold will have small areas of 55 to 85 square meters,” Toan revealed. “Buyers will be supported by banks that will allow them to pay in installments over 20 years.”
The rush by real estate developers demonstrates that they believe in the prosperity of the market in the near future.
Truong Xuan Tien, Director of An Hung Real Estate Company, remarked that real estate prices have not increased much, but the number of successful transactions has - by 30 percent in comparison to the days before Tet.
According to Tien, Van Canh project apartments are priced at about 30 million dong per square meter, Van Khe project is 40-60 million dong and Van Phu is just 32-45 million dong.
Tien also observed that most supply sources now are projects built before Tet that have been traded face to face between sellers and buyers instead of real estate developers and buyers.
He argued that real estate developers have every reason to launch their products right now. Developers know that gold trading floors will close by March 30, 2010, which means that a large number of investors are seeking new opportunities.
Meanwhile, Pham Trung Ha, General Director of Hoa Phat Land, believes that real estate developers will market their products in many different phases while paying attention to the market situation. “The highest peak of releasing products will be in the second quarter, when the market will be operating in full swing,” Ha mused.
In 2020-2050 Hanoi will include five satellite urban areas and a nucleus satellite area that will be expanded westward. The news has stirred the public interest. In 2009, real estate developers marched west, making area real estate prices escalate. In 2010 they will march toward the east, while the prices remain low.
A mini survey conducted by VnExpress showed that property remains the top investment choice of its readers (8400 readers, or 34 percent of 24,545 votes). 6,204 people, or 25.3 percent chose to invest in securities.
VietNamNet, VNE
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