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Ha Noi plan may boost property market
The city's real estate market will be positively affected by the new general plan of capital development approved by the Prime Minister in July, according to experts.
As part of the plan, Ha Noi is set to add five new satellite cities including Hoa Lac, Son Tay, Xuan Mai, Phu Xuyen – Phu Minh and Soc Son, as well as many other eco-cities to its periphery.
Nguyen Dinh Toan, Deputy minister of construction, affirmed that the plan would only have positive effects on Ha Noi's real estate market.
The new capital development plan will make it easier for real estate investors, traders and customers to make decisions due to comprehensive and accurate information regarding land development, he said.
Nguyen Huu Thang, Head of the PetroVietnam Construction Investment JSC's Business Department, said that the plan would provide useful information related to the company's development strategy.
The plan would make the city's real estate market more transparent, Thang said, adding that investors would be able to study the market more carefully before investing.
Vu Cuong Quyet, General Director of the Northern Dat Xanh JSC, a member of the Dat Xanh Group, said that the plan would warm up the city's market by the end of this year.
However, Dang Hung Vo, Former Deputy minister of Natural Resources and Environment, said that because the plan was aimed at long term development, no one could say for sure what its market effects would be in the short term.
Vo said that in future, property prices will fall to their real values, but no body could say when exactly this would happen.
"It's difficult to say how the city's property market will change after the approval of the general plan," said Dao Ngoc Nghiem, deputy chairman of the Ha Noi Urban Plan Association.
Currently, many investors have withdrawn their money from property projects that have not implemented infrastructure development in accordance with the city's general plan, Nghiem said.
Khuat Tuan Duong, Deputy Director of the Tac Vang Real Estate JSC, said that prices in some areas fell following the approval of the plan, meaning that it has yet to have an effect on the market.
Because the industry had suffered amidst the economic crisis, market circulation has been slow, even stopping in some instances, he said.
The general plan might effect the city's property market during the next 3-5 years, said a representative from the Hadico Real Estate Trading Floor.
Pham Trung Ha, General Director of Hoa Phat Land, said that potential property areas set to heat up in the near future include the western and eastern parts of the city.
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