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Ha Noi land prices skyrocket in May
Land prices throughout Ha Noi have recently skyrocketed following the revelation of future development plans.
Land prices in Lang- Hoa Lac Street, Ha Dong, Gia Lam and Tay Ho, the hottest areas, have surged by 35 per cent or more over the previous month.
In areas covered by the Geleximco project in Le Trong Tan Street, Ha Dong District, current land prices stand at VND65 million (US$3,420) per square metre compared with the last month of VND43 million ($2,260).
In Kim Chung and Di Trach, Ha Dong, prices also increased to VND30 million ($1,578) per square metre from VND26 million ($1,370) last month.
Prices in Gia Lam and Tay Ho Districts have also increased, including the Dang Xa new urban area, where valuations grew to VND25 million ($1,310) per sq.m from VND18 million ($947) last month. Land in Ciputra is now valued at VND110 million ($5,790) per square metre from VND80 million ($4,210)
The land price in some areas such as An Duong Vuong Street, Tay Ho District and Bat Trang, Dong Du, Gia Lam District also doubled.
According to the real estate experts and companies, there are many reasons for the rising land prices.
Nguyen The Cuong from the Long Bien real estate consulting office said that the Ecopark new urban area and Gia Lam Park developments have helped boost prices in Gia Lam District.
Nguyen Anh Tuan from the New Ha Noi Real Estate Co believed that the prices were being strongly affected by the Ha Noi 2030 master plan submitted to the Government by the Ministry of Construction in March.
"The Ha Noi master plan announcement, including five satellite urban areas created the increase in land prices in these areas," said Tuan.
In addition, the gradual completion of infrastructure projects in these areas and the decrease in lending interest rates by commercial banks, combined with investors' speculation were reasons to push the prices, said Le Xuan Truong, Director of BDS Real Estate Company.
"At present, many people think that the land prices will increase further in the near future, so, they are pouring money into real estate," said Truong.
Dang Hung Vo, Senior Advisor to the Ministry of Natural Resources and Environment, said that the Ha Noi real estate market was flourishing due to people wanting to invest in real estate as the country's economy remained relatively stable. However, Vo warned that land prices would be subject to fluctuation and susceptible to speculators.
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