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Land market in west Hanoi cooling down
A large number of advertisements selling land have appeared in recent days in newspapers. Analysts said that speculators have been trying to bargain land away over the last two weeks.
According to Lao dong newspaper, the price of apartments in the west of Hanoi remains stable, but the price of land in the area has been decreasing daily.
Pham Van Bang, an officer of the real estate brokerage office on Nguyen Chi Thanh Street, said that after a land price fever (Which saw land prices increasing sharply by 30-40 percent), the Hanoi land market has cooled down, with the number of transactions decreasing by 70 percent from the previous month. Bang also said that over the last month, his brokerage office has not completed any brokerage deal.
Le Trong Tan, a new urban area invested in by Geleximco, is a well-known address for many people. The land plots here were hunted by many investors in the last few months, and considered ‘rare goods.’ However, people who need to purchase land in the area now can easily choose the locations that fit their pockets just by searching on Internet or coming to real estate brokerage offices. The land prices at Le Trong Tan have dropped by 3-4 million dong per square metre from that of a month ago.
Hong Anh, an officer of Viettinbank, said that she has been hunting for land in the new urban area for many years, and she knows the price fluctuations of the location well. One month ago, the land price was between 37 and 39 million dong per square metre, while it is now only 34-35 million dong per square metre.
“I think that the land prices in the area are unreasonably high. Though the price has been decreasing, I still do not make transactions. I will only buy in when the land prices go down further to levels that truly reflect their value,” she said.
Similarly, the land plots in Van Canh, Kim Chung-Di Trach, North and South An Khanh, Duong Noi urban areas are also on sale at the prices which are not sky high as before.
Especially, people now are not rushing to purchase land in the districts of Ba Vi, Thach That and Quoc Oai any more. Just a couple of weeks ago, people were flocking to the districts to look for land to buy, because they heard that the national administration centre could be located in Ba Vi in the near future. However, people have realized that the national administration centre is still being discussed, and that the Government has not made any decision on the centre as of yet.
According to real estate experts, the fact that investors are bargaining land away could make the real estate ‘bubble’ burst.
“The land prices in Hanoi in general, and in the west in particular, have been pushed up to overly high levels. As there have been few transactions, speculators have been selling. At the moment very few investors will dare purchase land in order to avoid risk. They are still awaiting clear information about the Hanoi development programme before making their decision,” said Le Quoc Cuong, Director of the real estate brokerage office in Van Quan urban area.
vietnamnet, DTCK
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